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Great, then you should cite evidence of declining liquidity if you want to support the thesis of Tether being about to blow up.

FWIW, I agree Tether is flaky and worth avoiding (to the point of having a short), I just cringe at attempts to cite market cap as a meaningful figure on its own.

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That's because market cap is one of the few numbers that can be computed from the outside. If they issued audited financial statements quarterly, we'd know more. Yes, there is their rather vague backing report.[1]

[1] https://assets.ctfassets.net/vyse88cgwfbl/1np5dpcwuHrWJ4AgUg...

You can also look at how closely it maintains the peg, and whether it’s at a premium as much as it’s at a discount. (By which Tether does poorly.)

It’s misleading to look at the market cap with the implication that it’s fluctuations are due to loss of value per unit (the usual cause for non-stablecoins).

You might as well say that your bank lost $500 when you made a $500 withdrawal (while neglecting to mention the deletion of $500 in liabilities).

Can I ask how you short Tether?

I made this comment on how to:

https://news.ycombinator.com/item?id=31392605

Prerequisite: you expect USDC to keep parity with the dollar.

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