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how are they addressed? You don't know if it's 1:1 backed, if you don't know that it can collapse any moment
by arez 6y ago
how are they addressed? You don't know if it's 1:1 backed, if you don't know that it can collapse any moment
- csomar 6y agoIt's hard to fake because people can cash out of Tether. You can sustain a ponzi only if you had tight control of inflow-outflow until it collapses. For example, Okex froze withdrawals a month ago on its exchange. I had a 5 figures there that I was able to move by mirror trading on another exchange. If many people mirror traded (which they probably did), the prices will start to diverge. The prices very slightly diverged, which means a well capitalized third-party had strong conviction/guarantees that Okex is good for the coins/money, and played the reverse trade by injecting even more capital into Okex (they still allowed deposits). If you are trading and notice these patterns, this gives you an idea about the probability that the exchange is going back to business. Same thing for Tether, their liquidity and price stability is even better than USDC.