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Does this mean USDT is next?
by nojs 4y ago
Does this mean USDT is next?
- Tenoke 4y agoNo, this has close to nothing to do with USDT. The current bad market conditions might also be bad for USDT and could potentially cause it to fall (though I wouldnt bet on it personally) but there is no connection beyond that.
- Shaanie 4y agoTether did lose its peg for a few hours, although like you said it's an unrelated and different mechanism.
- phh 4y agoUST/Terra was pegged to the dollar by diluting Luna to the infinity, assuming Luna would keep a non-zero value. I still don't understand how can anyone think this can be a good idea, so my understanding could be wrong. Anyway, USDT has no such requirement it's pegged to the dollar by Tether company actually exchanging USDT at 1$. That's not saying USDT won't crash, (there are reasonable fear of wrongdoings) but those two are really not alike
- prepend 4y agoDoesn’t it highlight the insolvency of USDT because they don’t actually have the assets to exchange all their coins for $1 and won’t conduct a proper audit to confirm or deny? It should be fairly easy to do a run on USDT, but not sure if anyone would make money from this.