An important distinction between Terra (what is being described there) and Tether (what this thread is discussing), is that Tether claims to be backed by real assets.
There is no strong distinction in backing: USDT just has a slightly more believable story.
Also the price of a stablecoin can shift from it's peg, even if it has 100% backing, when there is latency/congestion/spread/volume for the arbitrage trade.
That said, there is a whole heap of plenty of evidence that USDT is not backed by dollars 1:1.
Also the price of a stablecoin can shift from it's peg, even if it has 100% backing, when there is latency/congestion/spread/volume for the arbitrage trade.
That said, there is a whole heap of plenty of evidence that USDT is not backed by dollars 1:1.