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It's not really so. You create Tethers out of thin air, buy BTCs from it, the price rises. Then you sell them for real dollars, while unbacked tethers remain on
by Andrew_nenakhov 5y ago
It's not really so. You create Tethers out of thin air, buy BTCs from it, the price rises. Then you sell them for real dollars, while unbacked tethers remain on someone's accounts. Now, if USDT holders would want to withdraw it, they might run into some unexpected obstacle. So far it looks like nobody withdraws USDTs, so this fraudlently injected liquidity remains on the exchanges, powering the current bubble.
(and mind me, I'm a bitcoin maximalist, but I just don't see how bitcoin's price can be considered real at this point)
- thebean11 5y agoYes..but that only works exactly once per tether they print. You seemed to think the USDT volume was much more important than the total supply. > To get a clue, check daily trading volumes and compare them to market caps. Why does daily trading volume matter? In order to pump BTC twice with the same Tether, they must buy it back from the market right? So the artificial pump is only the total supply, not volume traded.