if you have a buyer (tether itself) that will always buy usdt at $1, then the price can fluctuate slightly in other exchanges but should always return to $1 sin

if you have a buyer (tether itself) that will always buy usdt at $1, then the price can fluctuate slightly in other exchanges but should always return to $1 since any fall in price becomes an arbitrage opportunity. you buy the 0.98 tether and sell back for $1, making 2 cents on the dollar. If the price keeps falling it’s because people don’t think they can get $1 from tether because they realize it’s actually worth $0. so you sell at the price you can get until the party is over. it’s not clear that this has happened yet, but it might, since tether has been extremely cagey about the assets it has backing usdt 1:1, so cagey you might suspect they are undecapitalized