Hacker News new | ask | show | jobs
by hhmc 1492 days ago
> But again, 1USDT is ALWAYS 1USD on tether.io.

Until you can't redeem and 1USDT is 0USD on tether.io. The price on a 'random orderbook' is reflecting this risk.

1 comments

> You can always (if they have the cash on hand) swap 1 USDT for 1 USD

Exactly, until you can't as I outlined.

The price on a randombook is a function of many things, including "percieved" risk. Its also a function of liquidity/depth and the willingness to exit fast, ignoring the 1-3% fee.

Everyone and their grandfather knows tether doesn't have 1:1 asset reserves for their $80B market cap. But noone knows how much they do have and how long they can keep up the charade.