4 ms·
USDT always regained its peg until one day it doesn't
by Lionga 4y ago
USDT always regained its peg until one day it doesn't
- bb88 4y agoTerra regained it's peg until it didn't.
- incrudible 4y agoTerra is not even in theory backed by real dollars, it had a known failure case, which did in fact occur. Again, the market priced that risk at virtually zero until the failure case was tangible.
- l-lousy 4y agoThat day will be when they finally release an audit
- baq 4y agoThis will never happen, it’ll have to be when redemptions stop working.
- tsimionescu 4y agoIs there any proof that anyone has ever successfully redeemed USDT from Tether?
- charcircuit 4y agoYes, there are even people on HN that have reported successful redemption of tether for USD. You can ask people directly. It's not like this is a rare thing that never happens. If people weren't able to do so you would expect people to actually make claims aginst it.
- tsimionescu 4y agoI have not seen anyone on HN ever claim to have exchanged the necessary 100K USDT for $99k or 1M+ USDT for $1M+ with Tether's parent company.
- charcircuit 4y agoLook back to one of the Tether submissions and you will find someone who says that their company was able to do it.
- incrudible 4y agoThey may well be 100% collateralized in bad collateral. Same for USDC really, except the collateral is not as bad.
- LawTalkingGuy 4y ago100% of $0. Tether is entirely a scam by intentional criminals and not a single dollar is in a vault. They say they're 1:1 backed but have committed obvious financial fraud around this. There's no benefit to them to be even 95% backed, it's 100% or jail, so why would they bother? This is how they maintain the peg perfectly - it's all fake. They "redeem" their friend's Tether with their personal funds but they won't even try if there's a run.
- incrudible 4y ago> it's 100% or jail Says who?
- incrudible 4y agoThat is not the point. USDT repegged from far worse news. It is a hot potato, but the market used to price that risk at almost zero for 99.9% of the time.