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if tether is backed 1:1 with dollars, how is it not withdrawals? I.e. either the number of total coins in circulation has dropped (unsure how that is different

if tether is backed 1:1 with dollars, how is it not withdrawals? I.e. either the number of total coins in circulation has dropped (unsure how that is different than withdrawing) or its valuation has dropped (i.e. it lost its peg). If they are just destroying coins, then they weren't 1:1 (possibly more than 1:1 before, but also possibly less).

kravvall 4y ago
Nobody, not even tether claims that tether is backed 1:1 by dollars.
- carrja99 4y ago
  They did once, but changed their tune. People then get all hand wavy and point at the fact banks have fractional reserves too.