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Does anyone have an explanation for why Tether is never actually equal to $1 ? If you look at the Tether/USD chart on coinmarketcap or whatever other exchange,
by ancris 5y ago
Does anyone have an explanation for why Tether is never actually equal to $1 ?
If you look at the Tether/USD chart on coinmarketcap or whatever other exchange, it always seem to slightly fluctuate by a few decimal digits around the 1 dollar level.
- shoghicp 5y agoIt can be traded against actual USD, same as other notes. "stablecoin" does not mean it's equal to USD, but about the same value (see DAI, USDC, etc.)
- turingfeel 5y agoIt's not a fixed price asset, it's still a market and Tether relies on arbitrageurs to take profits from inefficiencies in the price when it drops below $1 or rises above.