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Nonsense. If this were the case then tether could not trade at par.
by martinko 6y ago
Nonsense. If this were the case then tether could not trade at par.
- raesene9 6y agoIt could, if the major exchanges accept that it does and continue to back that notion...
- peteradio 6y ago(narrator) tether could not trade at par
- deleted 6y ago[deleted]
- gruez 6y agoI suppose this could work as long as you don't print too much. Let's say you have $10M USD in deposits. You can print $20M in USDT as long as you're reasonably sure that on average, people don't withdraw 50% of their deposits. This gets tricky though because USDT is used by multiple exchanges, so I'm not sure what exactly would happen if everyone withdraws their deposits not in USD, but in USDT to another exchange. They'd all need to be in on the conspiracy with some sort of settlement system to transfer money between them.
- 40four 6y agoI'm not a finance or a crypto expert, so don't take my word on it. But many people way smarter than me have been trying to prove this hypothesis for years. Bitfinex doesn't exactly have a reputation that deserves any trust, so I wouldn't put it past them. I think there is a good reason Coinbase does not allow trading Tether.