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And? So what? If that quantity of Tether (1/75 of the float) were dumped into the open market for USD, you'd expect to see the USD change rate fall. That clear

And? So what? If that quantity of Tether (1/75 of the float) were dumped into the open market for USD, you'd expect to see the USD change rate fall. That clearly hasn't happened. The rate has been very close to 1:1 forever. There's this unsubstantiated conspiracy theory that as I gather goes like this: Tether prints tokens, uses them to buy bitcoin when the USDBTC exchange rate falls. These Tether issuance spikes always happen after BTC corrections, and this is taken as evidence of pumping USDBTC. The problem is that if there were legitimate buying of BTC with Tether, which is plausible after the ass-whooping USDBTC has taken recently, new Tether would need to be issued to keep the 1:1 peg. Sources critical of Tether IMO don't provide the evidence needed to distinguish the two scenarios.

authed 5y ago
> That clearly hasn't happened. The rate has been very close to 1:1 forever. I tried to set a buy order for Tether at less than $1 and the exchange (Kraken) would not let me, maybe that's why?
- FDSGSG 5y ago
  Binance and Bitfinex definitely let you do this, so that's not why.
throwvirtever 5y ago
> [I]f there were legitimate buying of BTC with Tether, which is plausible after the ass-whooping USDBTC has taken recently, new Tether would need to be issued to keep the 1:1 peg. Can you explain in detail why new Tether would need to be issued?
- qeternity 5y ago
  It wouldn't. OP doesn't understand.
- pezzana 5y ago
  Increased demand for tether causes the exchange to rise as buyers compete against each other. Same as any other currency market. There's nothing special here. Tether needs to be issued to satisfy the demand and prevent the price of tether from rising against the dollar. Look, Tether is in all likelihood a scam that will eventually collapse. I'm just saying there are multiple ways to explain what's happening. Those making the claims have the burden of proof. And that proof has been rather thin for my taste.
chpatrick 5y ago
> If that quantity of Tether (1/75 of the float) were dumped into the open market for USD, you'd expect to see the USD change rate fall. Not if the small amount of people who want to redeem their Tethers for USD or vice versa are able to. Everyone else will happily trade at that rate as long as they feel confident what they own is equivalent to a dollar. The problem is if everyone suddenly wants their money back and it turns out it doesn't exist.
qeternity 5y ago
> The problem is that if there were legitimate buying of BTC with Tether, which is plausible after the ass-whooping USDBTC has taken recently, new Tether would need to be issued to keep the 1:1 peg. Um, no. Not sure how you think markets work, but this isn't right. Suggest you ask yourself if you really understand this topic, or if you own some crypto and thus have an incentive to believe you understand it so that you can dismiss it and enjoy the sweet crypto gainz.

authed 5y ago

> That clearly hasn't happened. The rate has been very close to 1:1 forever. I tried to set a buy order for Tether at less than $1 and the exchange (Kraken) would not let me, maybe that's why?

FDSGSG 5y ago
Binance and Bitfinex definitely let you do this, so that's not why.

throwvirtever 5y ago

> [I]f there were legitimate buying of BTC with Tether, which is plausible after the ass-whooping USDBTC has taken recently, new Tether would need to be issued to keep the 1:1 peg. Can you explain in detail why new Tether would need to be issued?

qeternity 5y ago
It wouldn't. OP doesn't understand.
pezzana 5y ago
Increased demand for tether causes the exchange to rise as buyers compete against each other. Same as any other currency market. There's nothing special here. Tether needs to be issued to satisfy the demand and prevent the price of tether from rising against the dollar. Look, Tether is in all likelihood a scam that will eventually collapse. I'm just saying there are multiple ways to explain what's happening. Those making the claims have the burden of proof. And that proof has been rather thin for my taste.

chpatrick 5y ago

> If that quantity of Tether (1/75 of the float) were dumped into the open market for USD, you'd expect to see the USD change rate fall. Not if the small amount of people who want to redeem their Tethers for USD or vice versa are able to. Everyone else will happily trade at that rate as long as they feel confident what they own is equivalent to a dollar. The problem is if everyone suddenly wants their money back and it turns out it doesn't exist.

qeternity 5y ago

> The problem is that if there were legitimate buying of BTC with Tether, which is plausible after the ass-whooping USDBTC has taken recently, new Tether would need to be issued to keep the 1:1 peg. Um, no. Not sure how you think markets work, but this isn't right. Suggest you ask yourself if you really understand this topic, or if you own some crypto and thus have an incentive to believe you understand it so that you can dismiss it and enjoy the sweet crypto gainz.