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A comment on Approx. 24 hours ago, Tether printed 1B $USDT out of thin air. Parent comment

Re:Approx. 24 hours ago, Tether printed 1B $USDT out of thin... by drexlspivey on Sunday December 05, 2021 @08:48PM (#29455297)
The price is not being determined on the open market, Tether's whole job is to maintain the peg at 1-to-1. Contrary to the FUD that is being recycled in here on all Tether topics, Tether doesn't print new money just because they feel like it, they do it in response to the demand for USDT in order to maintain the price at $1.

Yesterday cryptos crashed hard, people started moving out of their crypto positions and into stablecoins. Demand for stablecoins increased bringing their price > $1. Tether printed USDT and exchanged them for USD (and put the USD into their reserves) in order to bring the price down and maintain the peg. When the opposite happens they will sell some of their USD reserves for USDT.

[ Parent | on HN ]
Re:Approx. 24 hours ago, Tether printed 1B $USDT out of thin... by scrubs on Sunday December 05, 2021 @09:16PM (#29455473)
Huh? They peg on Saturday? (OP's ref'd txn has a Sat date on it.

They wait to peg only for nice round numbers like $1B exactly? No cents? No decimal?

They don't peg end-of-day, or at market-close, month or quarter end?

Is there an official financial notification of peg events like a crypto-currency corporate event calendar? Nobody should be surprised because pegging is telescoped ahead right?

Is there an offset in another block chain showing USD movement? Surely they didn't just phone the bank (broker) and do a regular ACH transfer, right? They used non main stream tooling cause they're the cool kids?

And where's proof USD moved in offset?

C'mon ... there's nothing here to take seriously. Heck, based on this nonsense I can peg USD out of my garage with carrots. Wanna know what? Wholefoods produce then straight to the keyboard. See you guys on the flip side with CyrptoCarrots, the organic sustainable cyrpto coin.

[ Parent | on HN ]
Re:Approx. 24 hours ago, Tether printed 1B $USDT out of thin... by drexlspivey on Sunday December 05, 2021 @09:33PM (#29455563)
I am not quite following what you are saying. When a currency is pegged to another, the central bank is actively buying and selling it's currency on the secondary market in order to maintain the peg ratio. It certainly doesn't happen at the end of every month or quarter.
[ Parent | on HN ]