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Apologies, I meant about them printing the money Friday. Trying to understand the relationship with them stabilizing bitcoin prices somehow but also why everyon
by exabrial 1y ago
Apologies, I meant about them printing the money Friday. Trying to understand the relationship with them stabilizing bitcoin prices somehow but also why everyone is worried about USDT and it being "real"
- ethbr1 1y agohttps://www.coindesk.com/business/2025/09/30/tether-adds-usd1b-in-bitcoin-to-reserves-as-usdt-supply-nears-usd175b-blockchain-data-shows https://www.coindesk.com/business/2025/09/30/tether-adds-usd... Tether's backing / solvency become more important when it's a major provider of crypto liquidity. If liquidity is generated by many participants, the failure of one doesn't impact the underlying asset. If liquidity is concentrated in one participant, it increases the potential volatility of the asset, as that participant's failure can drastically limit liquidity and leave the asset open to bigger price swings. That said, even at $1B, Tether is a smaller portion of the BTC market than it was historically.
- exabrial 1y agoThanks! Appreciate your explanation