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> If there was a discrepancy between the amount of USDT and USD controlled by Tether, surely that peg would be far away from $1 USD/$1 USDT right now no? Why w
by gizmo686 4y ago
> If there was a discrepancy between the amount of USDT and USD controlled by Tether, surely that peg would be far away from $1 USD/$1 USDT right now no?
Why would you think that? As long as Teather has >0 USD they can honor redemptions at face value. When Teather has 0 USD, their ability to redeem also drops to 0, and the peg collapses.