Because if you're worried that they don't have enough real us dollars to back the USDTs that they've printed, being able to directly redeem USDT for USD isn't really going to make a difference.
>All crypto exchanges are rigged casinos. The only way to win is not to play.
That seems like an overly broad statement to make, especially there are a few exchanges that try to be as by-the-books as possible.
>Tether absolutely swings up and down depending on how many people are fleeing into or out of cryptos at any given moment. We’ve seen like +5-7% and -20%. That’s enough to blow away any leveraged position.
Or just don't leverage to the max? Short-selling $1000 worth of USDT with $1000 of USD in reserve and 3x leverage should allow you to withstand most shocks without being forced to liquidate.
>Seriously, who lets you short Tether except for Bitfinex
Kraken, for one.
>and what will they pay you out in, more Tether? They don’t have a bank account. That’s why they invented Tether.
Again, this goes back to my first comment. Are you claiming that bitfinex isn't processing fiat withdraws (eg. wire/ACH transfer to a real bank)?
> Sounds like a great way to make a lot of money. Tether is currently trading 1:1 with USD (yes, even at exchanges that offer real USD). It should be easy to short-sell a bunch of tether, and buy it back when in collapses. And unlike short-selling stocks, your downside should be relatively low as tethers can't realistically go above their current price.
All crypto exchanges are rigged casinos. The only way to win is not to play.
Tether absolutely swings up and down depending on how many people are fleeing into or out of cryptos at any given moment. We’ve seen like +5-7% and -20%. That’s enough to blow away any leveraged position.
Finally, of course, you neglect counterparty risk. I have to put up collateral on this short which any of these exchanges could simply run for the hills with, as they do, regularly. Seriously, who lets you short Tether except for Bitfinex - and what will they pay you out in, more Tether? They don’t have a bank account. That’s why they invented Tether.