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by cliftonk 1367 days ago
definitely agree that if there were a ~50% depeg in tether things would get very, very ugly in crypto
1 comments

If Tether was 50% backed and there was a depeg it would probably be much worse than 50%. Presumably USDT would be redeemed at $1 until Tether's reserves were almost gone at which point Tether would have to stop accepting redemptions and the price of USDT could fall arbitrarily close to $0 in a short time.