People who accuse BitFinex of printing USDT out of thin air and dumping the market with it don't understand basic liquidity. If you do that... the value of Tether loses it's peg. We see the opposite in the bull markets... Tether starts trading higher than a dollar because they aren't printing enough and getting them out to all the exchanges that need it.
Like, seriously though... Bitfinex is going to buy Bitcoin at the peak and then eat the losses when it crashes and lose money? It's an idiotic conspiracy theory. And even if they are doing that, who gives a shit? As long as they maintain the peg it doesn't matter how much USD they have in the bank.
Does the Federal Reserve need to back the money they print out of thin air with another asset? Nope. It's a simple matter of trust. Do you trust the issuer of the stable coin to buy back the token when the value drops, or not? That's it... and they probably only need 20% collateral to accomplish that.
Think about it this way: Is Bitfinex really obligated to maintain the peg? Let's say Tether drops to 50 cents a coin and people are like wtf buy back the token with USD to maintain the peg and they just say "no" even though they have the money to do it. What then? It doesn't really matter if they have money in the bank or not.
I'm not trying to rant here but this conspiracy theory is being founded on the idea that Bitfinex is buying high and selling low but also somehow turning a profit from these actions even though all the market prices point to the opposite conclusion... it's ridiculous.
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100 TETHER = 94.81 :o
Nope, Tether is doing fine.
Which exchange is that? Bittrex?
You know which exchange prints Tether, right?
Show me the price of Tether on Bitfinex.
Nope, it was actually Binance.. I don't know why but the last two days the balance is showing different numbers.. Right now is okay, but..
When there is crazy high volume and users on not-Bitfinex are dumping Tether, it is very hard for Bitfinex to maintain the peg during massive dumps on other platforms.
Makes sense! I'm very much interested to see how things play out the 15th... (Or I suppose sooner if there is a dump.)
Thanks for slapping the 🐻 out of me w this thoughtful reply.
I live to serve :D