Re:BitConnect Closes Exchange as States Warn of Unregulated ...
by benmmurphy on Wednesday January 17, 2018 @10:43AM
(#16168784)
doesn't the fact that its trading at 1.07 mean that tether doesn't have easy access to USD or an easy way to exploit the arbitrage. tether as a company can take USD and print tethers. so they could take USD $100, print 100 tethers, exchange them for USD $107 and walk away with $7 profit. i don't think people would even be mad if they did this. this is exactly what they should be doing to preserve the peg.
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Re:BitConnect Closes Exchange as States Warn of Unregulated ...
by makomk on Wednesday January 17, 2018 @02:50PM
(#16171147)
People have, in fact, been getting mad when it appears they may have been doing this because people are weird like that. (Though I don't think there's enough market depth for that particular Tether-related arbitrage to be profitable, unlike some of the other options.)