4 ms·
This isn't a normal asset, the value of which can fluctuate over time without harm, once tether dips below $0.999 on the open market it becomes profitable to bu
by steeleduncan 4y ago
This isn't a normal asset, the value of which can fluctuate over time without harm, once tether dips below $0.999 on the open market it becomes profitable to buy on the open market and redeem them directly from Tether. Given that Tether's reserves clearly do not match the totality of all Tethers issued, that means that right now it is profitable to force Tether to burn through their currency reserves, bringing it closer to collapse.
Possibly a more accurate title would be Right now it is profitable to help put Tether out of business.
- LatteLazy 4y agoIf people start buying tether for .999 to redeem it, that will push the price back up...
- umeshunni 4y agoOnly as long as there are any buyers. At some point, not at 0.999, but probably at 0.9 and definitely at 0.75, people will lose faith.
- kybernetikos 4y ago"Tether Limited as of 2017 stated that owners of tethers have no contractual right, other legal claims, or guarantee that tethers will or can be redeemed or exchanged for dollars" https://en.wikipedia.org/wiki/Tether_(cryptocurrency) https://en.wikipedia.org/wiki/Tether_(cryptocurrency)