![]() ![]() That's a big misconception in the world of lender borrowers of the crypto world where some of the biggest and worst volatility downward for crypto have been some of the best days for the likes of Celsius Network and others.īorrowing exists in all markets, and people that intended on selling their crypto for profit after a big dump may well rather borrow on the crypto anticipating it rising again later and conversely if your cryptos had a huge pump and your capital gains and subsequent taxes would be too much because you've done too well too quickly and would have short-term capital gains taxes which are at a higher rate than holding at least a year here in America then you would also want to borrow on your crypto. I suspect there are possible scenarios where something catastrophic happens and all of a sudden ur GUSD is worthless.Īny help/clarification would be so so appreciated, thanks! ![]() If there was no GUSD and it was solely USD earning 8% interest FDIC backed I would have no questions at all. Sorry if the post is a little pessimistic for the subreddit, the whole concept just seems too good to be true to me. Last question - if I was invested in GUSD trying to earn interest what are the possible scenarios/situations where all of a sudden my money is at risk and I lose the chance to take it out (like Madoff). ![]() I have this slight suspicion that god forbid the crypto market crumbles in the span of a day or two that there is a chance you won't be able to swap out all your GUSD to USD and you lose your savings if the crypto market never bounces. The thing is, it says that GUSD is not backed by FDIC which was a red flag to me (despite saying their balance sheets saying they have enough USD to back GUSD). Gemini says that the USD you deposit is FDIC backed, but then they require you to convert it 1:1 to GUSD to earn that 8% interest. Naturally, I was a little skeptical at first and had a few questions. Was doing research and saw that the interest rate for GUSD is about 8% per year, which is insanely high compared to savings accounts. ![]()
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