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It's consistently 1/10th of a cent below the peg. That's not maintaining its peg. That being said, it has been stable at that price for several days now, but l
by thaway2839 4y ago
It's consistently 1/10th of a cent below the peg.
That's not maintaining its peg. That being said, it has been stable at that price for several days now, but let's see what the next few weeks hold.
- TheAlchemist 4y agoThis is due to the redemption fee. Per se, it’s not an alarming sign. There are more than enough red flags with Tether already !
- phphphphp 4y agoI'm as cynical about Tether as any sane person, but it's important to disambiguate between value on an exchange and redeemable value. If USDT is $0.90 on every exchange, but you can still redeem 1 USDT for 1 USD from Tether, then it is maintaining its peg. UST's value on an exchange was the peg by design, because it was algorithmic, but that's not true of non-algorithmic stable coins -- i.e: Tether.
- AlexandrB 4y agoIIRC to redeem you need a minimum of 100,000 USDT. So being a little off the peg still loses a bunch of "retail" investors money.
- soared 4y agoThat is correct, and additionally: > Tether charges a 0.1% fee for withdrawals up to a maximum of $1,000, which means Tether is redeemable at $0.99 for up to $1 million, and then $1 above $1million in terms of money in the bank.
- ShamelessC 4y agoWait, so they charge an _actual_ transaction fee in addition to whatever "gas fees" are already in place? I mean I get it, it's all a scam. But, this feels so...callous.
- soared 4y agoIt’s peg is isn’t entirely accurately described as $1. > Tether charges a 0.1% fee for withdrawals up to a maximum of $1,000, which means Tether is redeemable at $0.99 for up to $1 million, and then $1 above $1million in terms of money in the bank. Plus a $100k minimum to withdraw and a $150 fee for KYC.