“His debts approached three thousand dollars and, as Ponzi liked to say, his only assets were his hopes.” - Mitchell Zuckoff Last Friday evening when I wrote Crypto Carnage Coming?, I never could have imagined the historic events of the past few days. Carnage did indeed arrive on Wednesday, seemingly out of nowhere, when Bitcoin crashed to just above $30K – a nearly 50% haircut from the previous week’s highs – only to rip back to over $40K on the same day.
Not sticking my neck out for Tether that case is still TBD but as I sit here today 1.5 years after you wrote this article USDC is looking rock solid. I think the thing that self professed “no coiners” often overlook with stable coins is the incredible opportunity they offer the US. Everyone wants dollars the only problem is they can’t access them. If the United States we’re to really get behind stable coins every weak currency in the world would collapse into the dollar. Secondly if they were fully regulated requiring 1 to 1 backing in US Treasury bonds it would solve another massive problem we and every other country faces ie who the hell other than our own central bank is going to buy our negative real yielding debt?
Now, given the ramifications in the final paragraph. Think also what this means for $TSLA given its $BTC holding. This could pop a bubble in the NASDAQ with ripples of astronomical proportions (tech and passive funds, I’m looking at you). #ugly
While contagion between crypto exhanges is highly possible if something like usdc or tether were to collapse, any real carnage in finance world from coinbase collapse would be minimal. Yeah people would lose money, but global collapse? No. Archegos, costing over 20B caused a small set of losses on wallstreet, why would coinbase be any different?
On the other hand, people keeping money on exhanges should be wary. Bank run on exhanges could be awful and who is going to step in to provide liquidity for firms tangled in tether?
You showed your bias when you referred to coinbase officials selling their stock on the day of the direct listing as a "DUMP", cmon it's the only way to create liquidity for the stock, it's not an IPO, it was a direct listing, they MUST sell to create liquidity.
I can clearly smell bias in your writing/investigation, I have no time for tether and I'm all for transparency but I don't like bias investigative reporting.
The part about "blow back to the financial sectors", c'mon man! I know doom and gloom is your style but companies fail every day and go bankrupt the traditional System still stands.
I don't see how Coinbase being in the NASDAQ would cause any blowback to the traditional financial world. Coinbase goes bankrupt and is de-listed that's it. Happens to many stocks
Is it a coincidence that the "attestations" are delayed/ not out and now Coinbase is publicly traded, thus subject to many different disclosure requirements as a public company? What will we discover about $COIN in their first quarterly report? Just asking questions...
Not sticking my neck out for Tether that case is still TBD but as I sit here today 1.5 years after you wrote this article USDC is looking rock solid. I think the thing that self professed “no coiners” often overlook with stable coins is the incredible opportunity they offer the US. Everyone wants dollars the only problem is they can’t access them. If the United States we’re to really get behind stable coins every weak currency in the world would collapse into the dollar. Secondly if they were fully regulated requiring 1 to 1 backing in US Treasury bonds it would solve another massive problem we and every other country faces ie who the hell other than our own central bank is going to buy our negative real yielding debt?
This is an interesting thesis, but its major flaw is that there has to be a catalyzing event.
For top level pyramid/Ponzi schemes - this generally involves either a legitimate law enforcement prosecution or a failure in the chain of payments.
I do not see, from the article above, any evidence of either.
https://f.hubspotusercontent00.net/hubfs/6778953/USDCAttestationReports/2021-Circle-internet-financial-attestation-april-2021.pdf
A lot if smart people in crypto-land belive Tether is fine. Its price reflects this trust, no gov propping up its price.
Now, given the ramifications in the final paragraph. Think also what this means for $TSLA given its $BTC holding. This could pop a bubble in the NASDAQ with ripples of astronomical proportions (tech and passive funds, I’m looking at you). #ugly
While contagion between crypto exhanges is highly possible if something like usdc or tether were to collapse, any real carnage in finance world from coinbase collapse would be minimal. Yeah people would lose money, but global collapse? No. Archegos, costing over 20B caused a small set of losses on wallstreet, why would coinbase be any different?
On the other hand, people keeping money on exhanges should be wary. Bank run on exhanges could be awful and who is going to step in to provide liquidity for firms tangled in tether?
You showed your bias when you referred to coinbase officials selling their stock on the day of the direct listing as a "DUMP", cmon it's the only way to create liquidity for the stock, it's not an IPO, it was a direct listing, they MUST sell to create liquidity.
I can clearly smell bias in your writing/investigation, I have no time for tether and I'm all for transparency but I don't like bias investigative reporting.
The part about "blow back to the financial sectors", c'mon man! I know doom and gloom is your style but companies fail every day and go bankrupt the traditional System still stands.
I don't see how Coinbase being in the NASDAQ would cause any blowback to the traditional financial world. Coinbase goes bankrupt and is de-listed that's it. Happens to many stocks
Is it a coincidence that the "attestations" are delayed/ not out and now Coinbase is publicly traded, thus subject to many different disclosure requirements as a public company? What will we discover about $COIN in their first quarterly report? Just asking questions...
Keep up the doom writing. Love it.
Did anyone ask Grant Thornton for comment?
Could you strongman your own article and propose a more innocuous reason why the attestation may be late?
I think I am going to short these companies! thanks for a great article