/biz/ - Business & Finance

>>52309868
Why would it go under and in what way is it not honest? How does Circle correlate to Tether or USDT?
Circle has $10.1B in cash and $32.2B in U.S. treasuries with an average maturity of around 30 days. That's around a fourth of all USDC supply redeemable in time it takes for a bank transfer. Do you think they'd stop honoring the redeems and suicide in a time when a competitor is dying and they have a huge chance to solidify their #1 stablecoin spot? There's that risk but it keeps getting smaller every year SEC audits it and Lindy effect keeps accumulating.
>>52311469
IMO >>52311163 is right. General panic and covering USDT losses will cause markets to dump. There will be very little value flowing out of USDT because it's turning worthless, only at the very start it'll have an effect. The negative effects will far outweigh this small value flow and they will be lot more longer term. Only the worst bots and dumbest degens will contribute to exit liq. I bet many bots have lines of code in them that don't allow USDT reserves to go above a certain limit and more lines to instantly dump all USDT if it starts falling aggressively. It will be another race of who gets out fastest. If it ever happens...