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A comment on The Supply of Tethers at 27 November 2017 is $675M. Parent comment

Re:The Supply of Tethers at 27 November 2017 is $675M by empath75 on Tuesday November 28, 2017 @07:45AM (#15796699)
It seems to me that your currency loses its peg the minute that the cryptocurrency price collapses.
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Re:The Supply of Tethers at 27 November 2017 is $675M by 55555 on Tuesday November 28, 2017 @08:06AM (#15796847)
The parent comment (empath75) sounds correct to me. If people deposit a bunch of cryptos, but cryptos are highly correlated in downward movement, and the general crypto market suffers, then this new crypto is no longer pegged to USD.

EDIT: looks like this is covered under "Reserve Deficit Sell Penalty". I don't really understand this part but regardless this won't be pegged to the dollar.

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