[vmception]

Right, the redemptions. The counterpoint to that is how much do people withdraw from their investment accounts? They just go to cash within their investment accounts, while other people are still earning and depositing.

The same standard would apply to Bitfinex. Only explicit tether redemptions for fiat at the issuer cause tethers do be destroyed. People just sitting in database-fiat on the exchange during a risk-off moment wouldnt cause tether redemptions.

If a more respected exchange like say TD Ameritrade issued a stablecoin upon every deposit, it would go up and up and up too, even in market crashes, as people use their investing accounts as value storage even in market crashes, anticipating to buy dips or wait for other market conditions.