COINBASE for Crypto has come

[Clinamenic]

Celsius is in trouble @vimothy and Nexo may buy it out:

What Is Celsius and Why Is It Crashing? - Decrypt

Headlines attribute today's bearish market to Celsius's suspension of withdrawals on Sunday night. Is DeFi due for another major collapse?

decrypt.co

"Following Sunday’s freeze on withdrawals, Celsius rival Nexo proposed a buyout of certain of the film's liquid assets, pointing to "what appears to be the insolvency" of Celsius. With the wider crypto market deep in the red, it's a tumultuous time for DeFi in particular, and crypto in general."

 

[Murphy]

It’s rubbernecking. Oh look, someone just lost everything. Next. Also, the effort in raising a crypto currency to stablecoin status or not quite as good as sc but not complete gash either and then values creeping/crashing down. At some point a market exploit will open at a level critical enough to cause a global recession. Multiple opportunities, surely?

Humans are fickle creatures. We value entertainment when bubbles pop. Everyone I know barring certain close family and mates are balls deep in these games. Bizarre range. The worst phone junkies too. Each to their own, seems like snakes and ladders but in computer land with abstracted figures and terminology. At least if you crash it all to bits you can strengthen systems up to a time web23 launches

 

[wg-]

It really is going to shit now. Some people going to end up in a real mess, if they haven't already tbh

Is it true Celcius owe Tether 1bn?

House of cards

 

[mixed_biscuits]

Thank God I never managed to get my PC to recognise my Ledger wallet's USB.

 

[Clinamenic]

Is it true Celcius owe Tether 1bn?

House of cards

I don't know, but it wouldn't surprise me. My on-chain analyst friend told me to drop any USDT I had, but thankfully I don't have any. I'd go the USDC route if I need stablecoins, as they're fully asset-backed whereas Tether may not be.

 

[toko]

It really is going to shit now. Some people going to end up in a real mess, if they haven't already tbh

Is it true Celcius owe Tether 1bn?

House of cards

nope. tether has zero liabilities in celcius. funnily enough tether has been processing redemptions and has come out looking relativley okay despite how opaque they are. Speculators attempting to short tether are being liquidated. tether has always been a red herring though.

 

[toko]

in general the biggest financial blow ups occur where they are least expected. tether surviving for many years despite immense FUD indicates that it is actually very unlikely to fail. Plus, I know many funds and people who have processed tens of millions in $ of redemptions via tether

 

[toko]

I was thinking of writing a piece about the implications of the rise of tether/usdc on global political economy. in general i think crypto won't end up hurting the U.S dollar hegemony- it will accelerate it. Where crypto is adopted the dollar is adopted. this implication will define u.s relationship with crypto. within the sphere of u.s dollar stables though you will have two separate regulatory zones. USDCs are digital dollars. they are the u.s gov sanctioned version of dollars. u.s gov can directly control usdc so it's success will be more prioritized than tether. tether is effectively the cash equivalent of euro-dollars. As such it will be the choice for many in developing countries.

 

[toko]

what has prevented dollarization of these economies was the relative inability for everyday people to get dollars and the relative tx cost associated with using dollars. One either needs a connection or status, (and the right documentation) to setup a u.s/euro dollar bank account. Sending dollars digitally is near impossible via traditional means for those undocumented and outside the system. Sure you could buy u.s dollars from an in person exchange, but they gouge and are generally less liquid.

Tether on the other hand, is much easier to send and acquire, and is generally much more liquid for the average buyer and seller. Thoughts @vimothy @Clinamenic ?

 

[wg-]

I did read up on it later and the FT disagreed but it is actually only 500m now

Crypto lender’s Tether loan halved

$17bn decentralized finance lender Celsius Network reduced its borrowings of the Tether stablecoin in recent months

www.ft.com

One of Tether’s key partners halved its borrowings of the stablecoin in the months before the temporary loss of its dollar peg spread shockwaves through markets.

Celsius Network, a crypto lender with digital assets valued at $17bn, reduced its borrowings of Tether’s USDT stablecoin down to 500m before the recent market volatility, according to a person familiar with the facility.

The person said the reduction had occurred in line with reduced demand for USDT from Celsius customers. Celsius had no immediate comment.

 

[toko]

Yeah i figured they borrowed some USDT, my comment was in reference to USDT loaning dollars from its reserves to Celsius directly.

https://tether.to/en/tether-condemns-false-rumours-about-its-commercial-paper-holdings/

Ofc this is directly from tether so its hard to trust on its face. But it seems like there is little risk of a tether run just from Celsius blow up.

 

[wg-]

If celcius go under oweing tether 500m it will certainly be detrimental to the coin, they've lost their dollar peg several times over the last month.

Im surprised at your opinion but i agree, I'm not sure its enough on its own to fold it. However, if it creeps to that 95 cent mark again like it did start of June then all it takes is a couple of runs

 

[wg-]

In fact i have just read that there's been 1.6bn in redemption this week alone? That's not sustainable

 

[vimothy]

based on their own statements, tether has a decent amount of risk on its balance sheet and is certainly a long way from 100% reserve backed, for any reasonable and commonly accepted definition of the term "reserve". ofc whether that risk materialises in practice is another matter, and it's certainly more "stable" than something like terra / luna.

 

[vimothy]

you need to do lots of air quotes while youre reading that - """""reserves"""" breakdown

 

[vimothy]

based on their own statements, tether has a decent amount of risk on its balance sheet and is certainly a long way from 100% reserve backed

by my reading it's about 50%, btw

 

[vimothy]

what has prevented dollarization of these economies was the relative inability for everyday people to get dollars and the relative tx cost associated with using dollars. One either needs a connection or status, (and the right documentation) to setup a u.s/euro dollar bank account. Sending dollars digitally is near impossible via traditional means for those undocumented and outside the system. Sure you could buy u.s dollars from an in person exchange, but they gouge and are generally less liquid.

Tether on the other hand, is much easier to send and acquire, and is generally much more liquid for the average buyer and seller. Thoughts @vimothy @Clinamenic ?

hmmm, yes and no. I think you're right that ultimately crypto will help not harm dollar hegemony, but I'm also sceptical that stable coins make dollars significantly more available, and dollarisation significantly more likely, than otherwise

 

[Clinamenic]

I pretty much agree with @toko from what I understand. The crypto market has taken a beating recently, with Terra and now with Celsius, on top of the more widespread financial FUD. But yeah I don’t think crypto threatens the dollar. If anything, it threatens the major institutions facilitating usage of the dollar. To tokos point, I think any given web3 eth wallet will have greater ease using stable coins than than any given person using USD, at least if we’re taking digital dollar, IE needing a bank account.

 

[Clinamenic]

Let’s get this crypto thread to 100 pages

 

[Clinamenic]

I have a good amount of MATIC held on Celsius, haven’t tried withdrawing yet