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A comment on The trillion-dollar lawsuit against Tether. Parent comment

Re:The trillion-dollar lawsuit against Tether by zaroth on Monday November 04, 2019 @09:36PM (#21449083)
The Tether:USD rate is not the only factor you must consider, particularly because of how thinly traded it is.

The more important metric is comparing what it costs to buy BTC on Coinbase with cold hard USD, and what it costs to buy and then transfer out BTC with Tether anywhere else.

If you can buy large quantities of BTC with your Tether at close to the USD:BTC rate, then you can exit your Tether holdings at or close to the effective peg.

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Re:The trillion-dollar lawsuit against Tether by notyourday on Tuesday November 05, 2019 @12:11PM (#21454325)
That's sea shells being traded against rocks. For Tether not to be sea sells ( or rocks ) this trade needs to have a very low difference between X and Y:

Start send X from a bank account USD to trading spot. Do USD->Tether->BTC

Immediately follow up with:

Take BTC received and do BTC->Tether->USD (Y) => fire to the bank account

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