[csomar]

This article is horrible and is just click-bait or trying to induce panic. The $5m volume on Kraken is peanuts to the size of tethers ($2800m). Not only that but looking at the chart, it only moved the price by 0.5% and the volume was not irregular.

[andrewla]

The implied price of tether by comparing the price of BTCUSDT vs BTCUSD (and, for that matter, all XXXUSDT and XXXUSD pairs) is consistent with the price indicated on Kraken. That exchange, as far as I'm aware, is the only USDUSDT exchange operating currently.

    At 2018-10-15T13:33:24Z:
    Kraken    USDTZUSD:    0.9248
    Gemini    BTCUSD:   6384.0
    Bitfinex  BTCUSDT:  6925.1
    G / bfx   USDTUSD:     0.9218

Technically, Bitfinex operates a USDUSDT exchange (at 1:1), but they are reporting banking problems [1], and its possible that liquidity flight is driving some of the differential. Their exchange is de facto BTCUSDT since Tether is the fastest path to USD liquidity available, especially at the moment.

[1] https://medium.com/bitfinex/fiat-deposit-update-october-15th...

[tobltobs]

Normal volume can move the price by 0.5% against the underlying?

[csomar]

You have to understand the asset being traded and the environment. Kraken fees are around 0.1-0.2%. So the Market maker is making 0.4-0.6% if there is demand on USDT after this "dip". That's relatively little profit given the low volume.

So the market maker must be pretty certain that USDT is fine. Otherwise he'll demand a premium to offset the risk of holding USDT.

If anything the argument the OP gave suggests that traders have full faith in USDT.