4 ms·

Define "tiny". Is 0.1% tiny? 0.01%? 0.001%? USDT maintains its peg by allowing certain entities to redeem USDT 1 to 1. How much USDT's price fluctuates depends

Define "tiny". Is 0.1% tiny? 0.01%? 0.001%? USDT maintains its peg by allowing certain entities to redeem USDT 1 to 1. How much USDT's price fluctuates depends on how well that mechanism works, and market conditions.

graeme 4y ago
By claiming certain entities can redeem 1:1. No one has ever documented a Tether redemption. They have a very tiny number of clients and the terms say they don’t have to redeem at all.
- drexlspivey 4y ago
  > No one has ever documented a Tether redemption Are you just making stuff up? There were $10B worth of redemptions only last week.
  - graeme 4y ago
    No there was a $10 billion market cap reduction. The exchange rate on Tether’s owned exchange, Bitfinex was $1 most of the past week where it was less elsewhere. Likely Tether was using open market operations to trade dollars for Tethers and keep the rate up. Documenting a redemption would involve using the official redemption mechanism where you redeem $100,000+ at a time, pay a $100-$1000 fee, get a wire transfer from Tether etc. If you can find anyone ever documenting having done that, let me know
    - drexlspivey 4y ago
      How about the CEO of FTX who says they are doing it every day ? https://www.bloomberg.com/news/articles/2022-04-25/odd-lots-full-transcript-sam-bankman-fried-and-matt-levine-on-crypto https://www.bloomberg.com/news/articles/2022-04-25/odd-lots-...
      - graeme 4y ago
        Sam Bankman Fried would be among those most likely to be co-defendants in a trial. But, what I said was it’s never been documented. * Does he buy Tether at par or at a discount? * Can he redeem when he wants, in any quantity, or do they have arrangements? * Is he redeeming for dollars or in kind? Terms allow for latter * Does he buy with dollars or with commercial paper? I do not believe he has shown material which would let us answer any of these questions

graeme 4y ago

By claiming certain entities can redeem 1:1. No one has ever documented a Tether redemption. They have a very tiny number of clients and the terms say they don’t have to redeem at all.

drexlspivey 4y ago
> No one has ever documented a Tether redemption Are you just making stuff up? There were $10B worth of redemptions only last week.
- graeme 4y ago
  No there was a $10 billion market cap reduction. The exchange rate on Tether’s owned exchange, Bitfinex was $1 most of the past week where it was less elsewhere. Likely Tether was using open market operations to trade dollars for Tethers and keep the rate up. Documenting a redemption would involve using the official redemption mechanism where you redeem $100,000+ at a time, pay a $100-$1000 fee, get a wire transfer from Tether etc. If you can find anyone ever documenting having done that, let me know
  - drexlspivey 4y ago
    How about the CEO of FTX who says they are doing it every day ? https://www.bloomberg.com/news/articles/2022-04-25/odd-lots-full-transcript-sam-bankman-fried-and-matt-levine-on-crypto https://www.bloomberg.com/news/articles/2022-04-25/odd-lots-...
    - graeme 4y ago
      Sam Bankman Fried would be among those most likely to be co-defendants in a trial. But, what I said was it’s never been documented. * Does he buy Tether at par or at a discount? * Can he redeem when he wants, in any quantity, or do they have arrangements? * Is he redeeming for dollars or in kind? Terms allow for latter * Does he buy with dollars or with commercial paper? I do not believe he has shown material which would let us answer any of these questions