@gentlemand. That is a good explanation by Kraken. Also, if the peg remains stable on $1.00 = 1 USDT, then that would show that the idea behind USDT is working.
Maybe the journalists are spreading FUD again paid for by the central bankers hehe. They know what's next if Tether grows in marketcap.
Maybe the journalists are spreading FUD again paid for by the central bankers hehe. They know what's next if Tether grows in marketcap.
There is definitely a massive amount of fud spreading happening, but we can't ignore the fact that USDT is not doing what it is supposed to do. So no, the idea behind it isn't working.
Plenty of exchanges don't respect the peg and they don't have to because there is nothing pegging USDT to the USD other than the promise that Tether (the company) will buy back your tokens for $1 per unit.
The main thing that made USDT lose its purpose of existance is that exchanges started listing USDT/USD pairs. Why on earth would you trade $1 versus $1? Bitfinex doesn't have a USDT/USD pair because they know it would ruin USDT, but they can't prevent other exchanges from doing it. Nothing prevents me from slowly buying up all USDT at an average of $0.95 and sell them back to Tether for $1.
On WEX you only need USDT 467,000 to dump the price down to $0.925. What if that dump triggers stop loss orders taking the price down to $0.75 or something? It's a tradable asset and not a stable coin. This whole Tether offers great utility theoretically, but not so much when it comes to real world use.
