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Comment by charcircuit | Hacker News Reader

Tether didn't depeg. Since there is a 0.1% fee when redeeming Tether redeeming Tether can only bring up the price to $0.999. You need demand for Tether to increase to bring it up to $1.

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Tether totally depegged. During the Luna collapse, it got down to .87 in 4 pool and a couple other DEX's. Technically, There is no 'Peg', it only exists because of arbitrage.

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.

Tether's direct redemption process is thoroughly opaque, limited to the big boys, and according to their own TOS only possible when they feel like it. So the price on "random exchanges" is the real price.

Great thing they are 100% transparent about redemptions they have honored! By the way, their terms state they don’t actually need to honor their redemptions with USD.

Here, have some Evergrande debt in exchange for your USDT.

I guess you understand the concept of arbitrage, but you don't know the word. Also, do you just regurgitate information you have previously heard or have you actually tried to exchange DAI for tether? You can't... and there is no auditing mechanism for Tether. They can print as much Tether as they want with no oversight.

https://coinmarketcap.com/currencies/tether/ claims it hit a low of $0.97.

It was lower than that. If you click on the Historical Data tab, you'll see they report a low of $0.9485 for May 12.

However, it may well have dropped even further depending on the exchange. These aggregators aren't a reliable source generally speaking.

They normally fluctuate a bit above/below $1. Show me a one month period when they’ve been this consistently below $1.

They may have had one longer period, when they lost their bank account access….other than that this is the record. It is novel

Okay, but that doesn't means that it has depegged. The deposit / withdrawl fees try and bound the value to be within 0.1% of USD.

Much of the actual “redemptions” happen on Bitfinex. Tether and Bitfinex have the same owners and they buy Tether in open market operations. You can see the accumulations in Bitfinex USDT wallets before they move to the Tether Treasury

The 0.1% is entirely theoretical. There has never been a documented Tether redemption so we have no idea what the actual terms are. We already know in many cases Tethers are created with no dollars changing hands: Celsius admitted to giving Tether Bitcoin for USDT as a loan

So without actual proof of redemption it’s naive to merely believe the stated terms of known liars.

The exchange prices are the real prices, and they haven’t been this low this long. Accompanied by outflows that is significant.

>There has never been a documented Tether redemption

Are you sure about that? There are several people on this site who have claimed their company has successfully redeemed Tether.

Emphasis on documented. We’re dealing with liars here. Their customers, who are small in number, are insiders with incentive to keep the music playing.

And I’ve seen some of these claims. Upon pressing they got their money via Bitfinex, not Tether redemption

Are you sure? I withdrew $xxx,xxx in late May and it landed in my bank account in days.

Withdrew from Bitfinex or redeemed at Tether? My point is people make these claims but no one has documented actually redeeming via Tether

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