Credit/Macro/Crypto Analyst, Former Credit/MA PM

Rose Choy

Crypto

<ul>
<li>USDT or Tether, the largest stablecoin, has been experiencing small discounts to peg at times (larger discount during market stress) but those looking for a blow up will be disappointed.</li>
<li>Tether's redemption dynamics are the main cause of the discount. Recent withdrawals in Tether and drop in market capitalization are the result of liquidations in the crypto space.</li>
<li>While Tether's reserves are not transparent, the Company is not regulated and is under no obligation to disclose their balance sheet/ reserves in full. </li>
</ul>


USDT or Tether, the largest stablecoin, has been experiencing small discounts to peg at times (larger discount during market stress) but those looking for a blow up will be disappointed.
Tether's redemption dynamics are the main cause of the discount. Recent withdrawals in Tether and drop in market capitalization are the result of liquidations in the crypto space.
While Tether's reserves are not transparent, the Company is not regulated and is under no obligation to disclose their balance sheet/ reserves in full. 


China and US Equity Analyst

Roger Xie

Cross Asset Strategy

<ul>
<li>Stablecoin <a href="https://www.smartkarma.com/entities/terrausd" target="_blank" data-smartkarma-citation="entities:35209:1" rel="noopener">TerraUSD (UST CURNCY)</a> has de-pegged from USD; the implosion put pressure on <a href="https://www.smartkarma.com/entities/tether" target="_blank" data-smartkarma-citation="entities:35208:1" rel="noopener">Tether (USDT CURNCY).</a> This resembled the confidence crises that precede bank runs.</li>
<li>The incident happened under macro headwind such as tech stock sell-off, rising benchmark interest rates and TerraUSD specific algorithm design. </li>
<li>The bigger worry of de-pegging has investors to re-assess the reserve behind stablecoin in the crypto ecosystem; we expect the ripple impact will continue for some time before settling down.</li>
</ul>


Stablecoin TerraUSD (UST CURNCY) has de-pegged from USD; the implosion put pressure on Tether (USDT CURNCY). This resembled the confidence crises that precede bank runs.
The incident happened under macro headwind such as tech stock sell-off, rising benchmark interest rates and TerraUSD specific algorithm design. 
The bigger worry of de-pegging has investors to re-assess the reserve behind stablecoin in the crypto ecosystem; we expect the ripple impact will continue for some time before settling down.


Crypto: Perfect Storm on Stablecoin Infrastructure

Crypto Fundamental Investor/Analyst

Josh Du

NASDEX Ltd

We believe that the tokenization of all asset classes, including stocks, is inevitable as the world further increases adoption of crypto and blockchain technology.

NASDEX is designed to serve as a bridge between the crypto world and the equity world. We believe that the onchain adoption of the equity asset class will deliver increased accessibility with improved capabilities for both crypto and equity investors

<ul>
<li>Stablecoins are the critical $170 billion dollar sector that is the key building block for the entire $2 trillion dollar crypto asset class with increasing attention from regulators</li>
<li>In part 1, we explore some real world case studies on problems that stablecoins solved for crypto such as stability of payments to vendors, and the enabling of lending</li>
<li>We also present a (almost) risk-free arb where traders pay 1.5% to borrow USD and receive 9% on stablecoin dollars </li>
</ul>


Stablecoins are the critical $170 billion dollar sector that is the key building block for the entire $2 trillion dollar crypto asset class with increasing attention from regulators
In part 1, we explore some real world case studies on problems that stablecoins solved for crypto such as stability of payments to vendors, and the enabling of lending
We also present a (almost) risk-free arb where traders pay 1.5% to borrow USD and receive 9% on stablecoin dollars 


Stablecoin Part 1 - The Game Changing Tech in Crypto and a Real World Arb Trade

<ul>
<li>HKMA released a discussion paper on the regulation of stablecoins in Hong Kong which seems to suggest a divergence in regulatory approach towards crypto from China's current stance</li>
<li>China has historically allowed banned activities from the mainland to operate in a controlled environment such as gaming in Macau</li>
<li>We explore the potential that HK is the perfect firewalled environment where crypto could be allowed to develop without contagion for the rest of China</li>
</ul>


HKMA released a discussion paper on the regulation of stablecoins in Hong Kong which seems to suggest a divergence in regulatory approach towards crypto from China's current stance
China has historically allowed banned activities from the mainland to operate in a controlled environment such as gaming in Macau
We explore the potential that HK is the perfect firewalled environment where crypto could be allowed to develop without contagion for the rest of China


Crypto Weekly: Will Hong Kong Be the Macau of Crypto?

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Tether (USDT CURNCY)

Tether (USDT) - Not the Next Domino

This insight explains why USDT is not the next blow up in crypto and why there could be a small persistent discount to peg, due to redemption...

Rose Choy

Crypto: Perfect Storm on Stablecoin Infrastructure

The bigger worry of TerraUSD de-pegging has investors to re-assess the reserve behind stablecoin in the crypto ecosystem; we expect the ripple...

Roger Xie

Stablecoin Part 1 - The Game Changing Tech in Crypto and a Real World Arb Trade

Introduction piece to a deep dive series on the USD170 bn mkt cap stablecoins which are systematically important for crypto and is increasingly...

Josh Du

Crypto Weekly: Will Hong Kong Be the Macau of Crypto?

Based on the latest HKMA crypto regulation paper, we explore the potential that HK is the perfect firewalled environment where crypto may be...

Josh Du

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