It isn't really pegged to the dollar. It's a token that's issued by a company, to help Bitfinex get round it's dollar banking problems.
Because they can't bank in dollars and have no licence to do any trades involving dollars, they allow people to trade against USDT "as if it were dollars".
But they're not real dollars and if you tried to redeem them for dollars you'd struggle (in fact teh conpany issuing them says explicitly on their website that they cannot be redeemed for dollars).
Topic: How can USDT be pegged to Dollar? (Read 403 times)
Their model is to sell USDT and maintain a balance that at least equals as much in USD as they have issued USDT. In reality, there's no requirement for them to maintain a specific ratio and their model is built on trust. There are no third party verifications of their bank balances, even though they say they have audited balances.
They also have no banking relationships with US based banks so if you tried to actually convert USDT and withdrawal, who knows if it would actually work. I like their concept, but they have many challenges because of their banking issues.
They also have no banking relationships with US based banks so if you tried to actually convert USDT and withdrawal, who knows if it would actually work. I like their concept, but they have many challenges because of their banking issues.
So just release more USDT supply to control the price. Do they have a finite tokens supply or unlimited to match federal reserves' printing appetite in quantitative easing?
They can issue as much as they want. The current speculation is how are they being able to issue new USDT dollar for dollar when they have 0 banking relationships outside of Taiwan. This post goes into detail - https://hackernoon.com/the-curious-tale-of-tethers-6b0031eead87
Their model is to sell USDT and maintain a balance that at least equals as much in USD as they have issued USDT. In reality, there's no requirement for them to maintain a specific ratio and their model is built on trust. There are no third party verifications of their bank balances, even though they say they have audited balances.
They also have no banking relationships with US based banks so if you tried to actually convert USDT and withdrawal, who knows if it would actually work. I like their concept, but they have many challenges because of their banking issues.
They also have no banking relationships with US based banks so if you tried to actually convert USDT and withdrawal, who knows if it would actually work. I like their concept, but they have many challenges because of their banking issues.
So just release more USDT supply to control the price. Do they have a finite tokens supply or unlimited to match federal reserves' printing appetite in quantitative easing?
They can issue as much as they want. The current speculation is how are they being able to issue new USDT dollar for dollar when they have 0 banking relationships outside of Taiwan. This post goes into detail - https://hackernoon.com/the-curious-tale-of-tethers-6b0031eead87
I don't get it either, if it was tied to the USD the price and supply would have to be fixed.
Their model is to sell USDT and maintain a balance that at least equals as much in USD as they have issued USDT. In reality, there's no requirement for them to maintain a specific ratio and their model is built on trust. There are no third party verifications of their bank balances, even though they say they have audited balances.
They also have no banking relationships with US based banks so if you tried to actually convert USDT and withdrawal, who knows if it would actually work. I like their concept, but they have many challenges because of their banking issues.
They also have no banking relationships with US based banks so if you tried to actually convert USDT and withdrawal, who knows if it would actually work. I like their concept, but they have many challenges because of their banking issues.
So just release more USDT supply to control the price. Do they have a finite tokens supply or unlimited to match federal reserves' printing appetite in quantitative easing?
They can issue as much as they want. The current speculation is how are they being able to issue new USDT dollar for dollar when they have 0 banking relationships outside of Taiwan. This post goes into detail - https://hackernoon.com/the-curious-tale-of-tethers-6b0031eead87
Their model is to sell USDT and maintain a balance that at least equals as much in USD as they have issued USDT. In reality, there's no requirement for them to maintain a specific ratio and their model is built on trust. There are no third party verifications of their bank balances, even though they say they have audited balances.
They also have no banking relationships with US based banks so if you tried to actually convert USDT and withdrawal, who knows if it would actually work. I like their concept, but they have many challenges because of their banking issues.
They also have no banking relationships with US based banks so if you tried to actually convert USDT and withdrawal, who knows if it would actually work. I like their concept, but they have many challenges because of their banking issues.
So just release more USDT supply to control the price. Do they have a finite tokens supply or unlimited to match federal reserves' printing appetite in quantitative easing?
Their model is to sell USDT and maintain a balance that at least equals as much in USD as they have issued USDT. In reality, there's no requirement for them to maintain a specific ratio and their model is built on trust. There are no third party verifications of their bank balances, even though they say they have audited balances.
They also have no banking relationships with US based banks so if you tried to actually convert USDT and withdrawal, who knows if it would actually work. I like their concept, but they have many challenges because of their banking issues.
They also have no banking relationships with US based banks so if you tried to actually convert USDT and withdrawal, who knows if it would actually work. I like their concept, but they have many challenges because of their banking issues.
Do they take in USD notes and release USDT 1:1, just like acting as the federal reserves?
How else would they be able to peg it.
How else would they be able to peg it.
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