[random_rr]

Keeping pace with the market. Tether burning coins is an expected and healthy part of their supply management strategy. Think about how you'd keep a finite-supply coin pegged to a value - you'd print and burn tokens as needed to stabilize the value of the coin.

[citricsquid]

This is not what Tether is intended to be. Tether is not pegged to the value of 1 USD. The value of Tether does not need to be stabilized. Tether is a 1 for 1 USD backed coin, meaning it's entirely within the scope of Tether for the value of 1USDT to reach $1.10, $1.20 or even $1.50 -- if the market decides that is the value of it.

The point of Tether is that for each USDT there is a corresponding USD in an account belonging to Tether. If Tether were printing USDT to keep 1 USDT valued at 1 USD then they would be violating what Tether is publicly stated to be.

The whitepaper can be found here: https://tether.to/wp-content/uploads/2016/06/TetherWhitePape...

[jellicle]

But if you can buy a new Tetherbuck straight from Tether for $1USD, issued in unlimited amounts, why and how could the value of a Tetherbuck ever exceed $1USD?

And on the flip side, if Tether redeems any Tetherbuck for $1USD, on demand and quickly and without solvency concerns, why and how could the value of a Tetherbuck ever drop below $1USD?

Any deviation from $1USD value means the market disbelieves one of the above things.

[TeMPOraL]

I don't think anybody reasonable believes they're actually backed by USD at this point.

[sanxiyn]

I agree it is indeed normal if Tether is backed.