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Can you actually "withdraw" Tether as dollars at these exchanges? Or can you just pass the buck by trading Tether for other cryptocurrencies?

• orthecreedence 9y ago
  You cannot withdraw Tether. You can only trade it for something else on an exchange. Tether does not actually let you convert USDT -> USD. I wonder why.
  • gruez 9y ago
    Presumably you can. I personally do not have accounts at any USDT exchanges, so I can't personally verify that fact. Even if all of the USDT exchange don't accept USD withdraws (which itself is unlikely because nobody would provide sell volume to them), at the very least you can trade them for "real" USD on kraken (at a few percent discount).
    • ceejayoz 9y ago
      > at the very least you can trade them for "real" USD on kraken (at a few percent discount) For now. If faith in Tether collapses, no one will trade USD for that "few percent" discount anymore.
    • rspeer 9y ago
      You say "presumably you can", but according to David Gerard, there is no evidence that anyone has redeemed Tether. Only people presuming that they could if they wanted to, or people who heard of someone who heard of someone who did it. The surprising fact is that people do buy and sell on exchanges that have no access to real money. Trading Tether for USD on Kraken is different, and is the topic of this thread. Given that Tether cannot be redeemed, its price is free to fall as soon as traders on Kraken lose faith -- which, given that Tether has essentially failed an audit, may be happening.
      • davidgerard 9y ago
        I'm not saying it's impossible. I'm saying I know of 0 reports of this happening - and if it had, I'd have heard, and I mean there's not even bitcoin advocates saying they've done it - and one well-documented one of failing to do so: https://davidgerard.co.uk/blockchain/2017/12/05/bitfinex-rattles-legal-sabres-at-critics-tether-fails-to-redeem-usdt-1m-for-dollars/ https://davidgerard.co.uk/blockchain/2017/12/05/bitfinex-rat...