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It's hard for Tether to de-peg when BTC and ETH are crashing? When everyone sells the former, the demand for USDT is net positive.

• greenthrow 4y ago
  Not true. People may be desperate to cash out and be selling their USDT ASAP.
• prvit 4y ago
  With FTX collapsing, many are eager to get entirely out of cryptocurrencies.
• potatototoo99 4y ago
  There are also other, more reputably, stablecoins, like USDC.
• Yizahi 4y ago
  Afaik there is no way for it to depeg, because they officially not allowing withdrawals, only for the "institutional investors" and at their discretion. You can't bankrun if the bank is closed and doors are barred :) . Small fluctuations probably come from the single existing in the world USD-USDT pair on Kraken, with minimal liquidity, it's just there for fun I think.
  • from 4y ago
    That's an interesting observation. There's gotta be a pretty limited upper bound on redemptions because I know there is rather extensive KYC involved which 99% of Tether holders couldn't pass, high minimums, and country restrictions. If the 3% from treasuries on 60 billion dollars isn't enough to satisfy them then operating even at 80% reserve (which in the absence of leaks could probably go undetected for a very long time) would mean they stole about 12 billion dollars which should be enough many times over for a private jet, a whole new identity, extensive plastic surgery, and high ranking government officials of some Caribbean island in perpetuity.