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I understand but as far as I know, Tether has never refused a single customer for redemption.
by m00dy 4y ago
I understand but as far as I know, Tether has never refused a single customer for redemption.
- lokedhs 4y agoHave they ever accepted any redemption?
- londons_explore 4y agoThey redeem via a trading bot on most of the popular markets. That's what keeps the price 1:1.
- yieldcrv 4y agothe trading activities are separate from the redemption window
- londons_explore 4y agoNo - thats what I'm saying. They use a bot to buy/sell USDT to keep the price 1:1... And then they redeem anything purchased by the bot. Effectively, they will redeem only for themselves. Could be a neat way to do no KYC or ownership verification or dealing with messy bank transfers to dodgy people, etc. Hides the location and/or existance of funds from redeemers and those able to trace money movements too. Or could be a way to hide a delicately balanced stack of cards...
- m00dy 4y agoyou mean arbitrage?
- yieldcrv 4y agoI don’t find market making or liquidity providing to be controversial it still requires capital from their reserves to do what you describe, purchasing USDT for $1 each the redemption mechanism is an incentive on its own. when Tether is below $1 purchase it yourself (pushing up the price of Tether) and go to the redemption window and get $1 for it regardless.
- lozenge 4y agoNeither did SVB until one day, they couldn't any more.
- m00dy 4y agoyes but crypto has had billion melt downs SVB has only one. and the other thing is that. If I had a business like Tether, believe me I would be counting every single cent in my holdings 7/24/365.