5 ms·
Day traders generally can't redeem Tether, you need to be a "verified customer of Tether". Most Tether redemptions are done by large institutions.
by 22c 4y ago
Day traders generally can't redeem Tether, you need to be a "verified customer of Tether". Most Tether redemptions are done by large institutions.
- kasey_junk 4y agoSo why aren’t those large institutions arbing the spread right now? If the answer is that they don’t have faith they can get the redemptions to cover their positions that’s also breaking the peg.
- bidirectional 4y agoBecause the spread is too small, when it widened a few weeks ago the spread was heavily arbed.
- kasey_junk 4y agoOk, so a $1 peg doesn’t exist or it’s been broken. If Tether is pegged to a range against the dollar that’s fine and normal! Just claim that. Or better yet don’t claim a peg at all if you have no mechanism to actually defend it.
- bidirectional 4y agoThe peg breaks when Tether refuses/is unable to redeem USDT for USD. Obviously in any secondary market whether order book or AMM based there is going to be trading within a range.
- prvit 4y agoDay traders can redeem tether on tether.to, as long as they aren't US based.