Since Tether can't back the 1/1 USD in an actual bank (due to banking regulations), they have to park that money somewhere. If they are parking it in other cry

Since Tether can't back the 1/1 USD in an actual bank (due to banking regulations), they have to park that money somewhere. If they are parking it in other cryptocurrencies, then they have to ensure that the value of that particular cryptocurrency does not fall below the average price they had to buy it at (to ensure they can redeem). So if, for example, Tether has had to buy Bitcoin and the average of all those purchases came out to $7,500/BTC, they have to ensure that BTC doesn't fall below $7,500 now because otherwise they end up net-negative. At least from what I can gather.