4 ms·

Have they ever accepted any redemption?

• londons_explore 4y ago
  They redeem via a trading bot on most of the popular markets. That's what keeps the price 1:1.
  • yieldcrv 4y ago
    the trading activities are separate from the redemption window
    • londons_explore 4y ago
      No - 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 ago
        you mean arbitrage?
      • yieldcrv 4y ago
        I 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.