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I fully support articles that give individual investors advice to stay away from tether (it is indeed a very shady product) but I fail to understand how this is
by drcode 8y ago
I fully support articles that give individual investors advice to stay away from tether (it is indeed a very shady product) but I fail to understand how this is a disaster for the crypto markets.
If tether fails, cryptocurrencies may drop to a lower price- That is not a "disaster", that is appropriate market behavior.
- duskwuff 8y agoThe issue is that many exchanges have dropped out of direct cryptocurrency/fiat trade -- if you have a FooBarCoin and you want to turn it into USD, for instance, you will most likely have to convert it to Tether before exchanging that for USD. A lot of trade between cryptocurrencies passes through Tether as well. If something catastrophic were to happen to Tether, it would have a significant adverse effect on all cryptocurrency trade.