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What, no? Tether is used as collateral for crypto futures positions. No day trader is buying spot, they are buying swaps (perp futures) or regular futures. And it's better to hold the collateral in tether or some other stable coin than in btc so you don't have to hedge as much exposure by writing futures.

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I see. And these traders are responsible for the increased demand of tether?

pretty much. the firm I work at has many millions of tether for this reason (to support the market making bots)

So there is no tether printing scam in the first place? (If there was a scam, I'd love to understand how it works)

I think the accurate answer at this point is we don't know for sure. It depends on how plausible you think it is that Tether has received ~$14b inflow in the past 6 months.

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