News for hackers. Stuff that matters.

A comment on Tether minted most USDT to just 2 firms – Alameda and Cumberland. Parent comment

Re:Tether minted most USDT to just 2 firms – Alameda and Cum... by backprop1993 on Thursday August 12, 2021 @12:18PM (#28158163)
Are you saying that the exchanges are forcing a $1 +/- 0.05 price range for Tether instead of letting it float freely? Interesting.
[ Parent | on HN ]
Re:Tether minted most USDT to just 2 firms – Alameda and Cum... by ceejayoz on Thursday August 12, 2021 @12:23PM (#28158237)
No, they're saying their personal USDT trading strategy involves a cessation of activity if Tether breaks the $1 peg, as it probably indicates trouble requiring human intervention.
[ Parent | on HN ]
Re:Tether minted most USDT to just 2 firms – Alameda and Cum... by merely-unlikely on Thursday August 12, 2021 @12:39PM (#28158465)
Not forcing per se - the arbitrage incentivizes market makers to keep the value roughly in the expected range. This happens in any asset class but the mechanic is quite straightforward in this case.
[ Parent | on HN ]