Links to Tether quotes: https://coinmarketcap.com/currencies/tether/ https://finance.yahoo.com/quote/USDT-USD At time of writing, it was at 0.9935 (at 1.26am ET) Now at 1.36am, it is 0.9896. This is getting interesting
Back in 2017 there were several times where USDT depegged down going as low as .86-.90, yet, nothing happened. This was back when the company was super obscure and the Fud was in full force I dont know what will happen but I would bet the peg holds and without much difficulty
Maybe I should start a Tether collapse journal. They are burning 1B Tethers per day to maintain the peg. "Probably more similar to a fed reserve bank buying mass amounts of the national currency to try and stop a massive sell off. Stock buy backs are done to increase value and usually done during good times. What is happening here is tether trying to stop the bleeding. Buy buying redeeming/buying all tether below 98c or whatever this is what maintains the $1 peg. If they stop buying back the tether being sold it will lose its peg. Now in theory they have enough reserves to do this because they should have $1 in reserve for every tether. So they could in theory buy them all back at $1 and set the market price to $1. So in some way they are making money buying these back at less than $1. But the real question will come if people continue to exit tether. Do they really have enough reserves to keep it pegged. At this stage it’s barely a 10% sell off so nothing major to worry about but if news starts coming out that they only have a fraction of the reserves they should have it could cause a massive bank run."
In theory, it is quite a business model. Selling something for a dollar and buying it back for 98 cents or less. The question is if they really sold those for a dollar (they may have given discounts to brokerages) and if they still have the reserves?
>but it's annoying that markets are being moved around by basic ignorance, amplified by financial news orgs. Not as annoying when FOMO and hype are moving markets.