Well it's hard to answer this hypothetical question, but
- their could be banks behind that will suffer the most, maybe like the Silvergate scenario, collapsing and filing for bankruptcy.
- then perhaps get out of the USDT, move it to some other crypto, at least the bleeding will stop on your end
- I don't understand what you mean by behavior, but it's obvious that when there is a panic, you will have to sell to stop the bleeding of our portfolio
Nevertheless this scenario might not happen though, not defending Tether or USDT, but they have been in the market for so long that perhaps they have toom much reserves to cover the possible collapse.
Topic: What if: USDT is unpegging and collapsing in the next days - Possible strategies - page 2. (Read 127 times)
March 09, 2023, 05:01:58 PM
March 09, 2023, 04:56:01 PM
What if: The unpegging and collapsing of Tether USD
I do have a hypothetical scenario:
In the next days the stablecoin USDT is unpegging from the US-dollar and is collapsing.
Question:
- What in detail would happen? Which coins, token, banks, funds, DEX' and CEX' would be ~stable and which one would die like flys?
- What would be the best strategies in the situation of a unpegging and collapsing of USDT?
- Which behaviour would have which (group of) person(s) and why?
Only good strategy at that point would be to leverage short everything to the ground in an exchange that wouldn't crash. I do have a hypothetical scenario:
In the next days the stablecoin USDT is unpegging from the US-dollar and is collapsing.
Question:
- What in detail would happen? Which coins, token, banks, funds, DEX' and CEX' would be ~stable and which one would die like flys?
- What would be the best strategies in the situation of a unpegging and collapsing of USDT?
- Which behaviour would have which (group of) person(s) and why?
Because every coin and token out there would crash. If usdt would crash people would jump to other stable coins and the volume would guarantee that they would fail the peg and people would have to pay premium for them.
There would be ton of bank runs that would crash many exchanges that didn't have enough reserves. It would affect on EVERYTHING and no coin or token would be safe. Also i don't think i would need to even mention that it would launch the longest bear run we have ever seen. You thought that UST was bad? This would be exponentially worse.
So good think it's hypotethical and won't happen.
March 09, 2023, 04:44:12 PM
What if: The unpegging and collapsing of Tether USD
I do have a hypothetical scenario:
In the next days the stablecoin USDT is unpegging from the US-dollar and is collapsing.
Question:
- What in detail would happen? Which coins, token, banks, funds, DEX' and CEX' would be ~stable and which one would die like flys?
- What would be the best strategies in the situation of a unpegging and collapsing of USDT?
- Which behaviour would have which (group of) person(s) and why?
I do have a hypothetical scenario:
In the next days the stablecoin USDT is unpegging from the US-dollar and is collapsing.
Question:
- What in detail would happen? Which coins, token, banks, funds, DEX' and CEX' would be ~stable and which one would die like flys?
- What would be the best strategies in the situation of a unpegging and collapsing of USDT?
- Which behaviour would have which (group of) person(s) and why?
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