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I'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
by phphphphp 4y ago
I'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.