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What happens to your "stablecoins" when their bank goes bust?
249 sats \ 8 comments \ @Jonathan_Adly 10 Mar 2023 bitcoin
Let's say you are Circle - because you are being run by fiat bros who optimize yield and believe in the risk-free narrative, you are putting a portion of your treasury in a bank. Somewhere boring and "safe", like Silicone Valley bank where all the other tech bros bank. Well - now the bank is running out of "money". What then?
I have no idea what bank Circle uses by the way, but they have $11b+ in a bank account somewhere lol.
Anyway, stablecoins are an abomination, all the ponzi economics of fiat and none of that sweet political influence that will allow them to steal from the population!
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10 sats \ 2 replies \ @DarthCoin 10 Mar 2023
Why do you care about these shitcoins? Who in the right mind will use and stack "stablecoins" aka shitcoins?
Don't do shitcoining. Don't waste your time with this crap. I will repeat this millionth times until NOBODY will mention anymore these shitcoins.
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0 sats \ 1 reply \ @om 10 Mar 2023
You do know that Fedimint will come with DAI-like stablecoins, right? (First place, 2.1 BTC prize: https://www.fedi.xyz/blog/fedimint-hackaton-winners)
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16 sats \ 0 replies \ @DarthCoin 10 Mar 2023
fedimint is not important for me. I will not use it. It doesn't have use case for me.
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0 sats \ 2 replies \ @037447d9ca 10 Mar 2023
When you say stablecoin I think in something like DAI, where there's no bank behind, it's silly that we call USDC or USDT under the same umbrella term, as they are just IOUs issued by a central party, very different in nature.
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0 sats \ 1 reply \ @Jonathan_Adly OP 10 Mar 2023
How much DAI is backed by USDC?
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0 sats \ 0 replies \ @037447d9ca 11 Mar 2023
That's not the point, I just said DAI because it's the most popular decentralized stablecoin. At the beggining it was 100% backed by ETH, then the project pivoted and now it's a complete mess (still much better than an IOU tho), but the original version is still running as SAI. There are stablecoins 100% backed by hard currency like bitcoin, with trustless mechanisms for redemption, we should focus on them, and ignore the scammy IOUs aka shitcoins.
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0 sats \ 0 replies \ @Jonathan_Adly OP 10 Mar 2023
I looked more into it to see if I can make money shorting USDC. USDC $11b is in NY Mellon with some kind of arrangement with blackrock. Definitely will get bailed out by the politicians. No play there.
GUSD on the other hand uses Silvergate (gone), signature bank (might go next) and JP Morgan (where they got kicked out). Not sure if I want the stress of fiat ponzis, but I would say that GUSD is a better play.
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0 sats \ 0 replies \ @grayruby 10 Mar 2023
Great question.
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