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UST/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 th
by phh 4y ago
UST/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.