Tether USDT Peg Concerns

Yes people exchanging their worthless asset (tether) for bitcoin so they can sell it for real USD.BTC-USDT -> infinity BTC-USD -> much lower

As long as there is a BTC/USDT and a BTC/USD market, Tether will work. If someone wants to sell USDT for USD, All Tether has to do is buy BTC with USDT, then sell the BTC for USD.

Reduces pressure to withdraw USDT for fiat on exchanges. Tether has to support those pegs or they break. Same difference

Its not the same thing because exchanges often trade only Tether/Bitcoin pairs, and don't allow people to withdraw into actual USD. If you can print as many tethers as you like, then you can massively pump the bitcoin price buying it with worthless tether.This only works as long as people selling Bitcoin have been happy to accept Tether instead of USD, which (inexplicably to me) they have been doing. If Tether is proven to be backed by nothing at all, then there could be a serious c

You assume tether will allow redemption of $1 USD for each 1 tether it receives. I believe tether makes no such guarantee you can actually redeem USD for your tethers.

"when exiting positions in the market" this statement applies only if you exit using tether.io. You can always (if they have the cash on hand) swap 1 USDT for 1 USD.They can't make that guarantee for . The reason it stays "mostly" at $1 on exchanges is because arbitragers are incentivized to do so.But again, 1USDT is ALWAYS 1USD on tether.io.So yes, the statement you quoted is accurate.

Tether promised that 1 USDT would be backed by 1 USD, and they would always honor a 1:1 exchange rate. Now it turns out that USDT are not backed by USD, and Tether will not exchange between the two. You are reliant on third party exchange services, that don't guarantee the exchange rate.Traditional banking services are hostile to crypto, so they cut off Tether's ability to trade in USD. And Tethers own interest (widespread use of USDT) is at odds with their inability to provide adeq

You seem to be forgetting about an exchange. Tether themselves exchanged USDT for USD. As long as they were able to continue honoring redemptions Tether remains pegged to the dollar. If I were to decided to sell 1 USDT for $0.50 right now, that doesn't mean that Tether has depegged. Just looking at the trading prices off of random exchanges doesn't tell the whole story.

There are exchanges (such as FTX) where you can trade USDT/USD. The basic premise is that USDT/USD will always be around 1, because Tether (the organisation) stands ready (always) to give youa) 1 USDT for a USD, andb) 1 USD for a USDT.Any USDT/USD deviation from 1 thus gives rise to arbitrage opportunities. Tether can guaranteea) because they can issue an unlimited amount of USDT, so when you give them 1 USD, they can definitely give you 1 USDT, and b) becauseb1) th

Because no one cares about random wild speculation and rumors spread across the Internet for almost a decade. What people care about is whether they can take 1 USDT and exchange it for 1 USD, plain and simple.Currently Bitfinex will exchange 1 USDT for 1 USD and they hold a substantial about of USDT, they also buy up USDT when it falls below 1 USD. I'm sure Bitfinex is happy to see reports about Tether's demise spread, because it's free money for them.If at some point it