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A comment on Tether starting to lose its peg too, after Terra did. Parent comment

Re:Tether starting to lose its peg too, after Terra did by charcircuit on Thursday May 12, 2022 @04:42AM (#31350929)
The big fear with stable coins is for them to go into a death spiral and become worthless. Stablecoin are only worth $1 if people believe they are worth $1. When fear sets in and people no longer believe they are worth $1 it can cause the price to tank. Having a stablecoin be backed means that you can trust your stablecoins to not become worthless because they can be redeemed at anytime at a $1 price point even if the market says otherwise.
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Re:Tether starting to lose its peg too, after Terra did by irjustin on Thursday May 12, 2022 @05:14AM (#31351213)
Ah so in theory I should be able to ask the USDT foundation for a dollar and they should be able to give it to me?
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Re:Tether starting to lose its peg too, after Terra did by charcircuit on Thursday May 12, 2022 @06:51AM (#31352091)
USDT is the worst in this regard since you have to deal in massive volume. The minimum withdrawal is $100k and fee on that is the greater of $1000 or 0.1%.

https://tether.to/en/fees/

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Re:Tether starting to lose its peg too, after Terra did by zarzavat on Thursday May 12, 2022 @09:30AM (#31353867)
That seems like a fair policy to avoid getting DDoSed by withdrawals in periods of high demand (i.e. bank runs). Presumably they mainly intend to serve exchanges which are doing withdrawals in the $millions.

Not defending their other practices.

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Re:Tether starting to lose its peg too, after Terra did by abzolv on Thursday May 12, 2022 @07:57AM (#31352681)
No. See my comment here https://news.ycombinator.com/item?id=31352602
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Re:Tether starting to lose its peg too, after Terra did by NhanH on Thursday May 12, 2022 @05:54AM (#31351552)
Yes, https://tether.to/en/transparency
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Re:Tether starting to lose its peg too, after Terra did by irjustin on Thursday May 12, 2022 @05:59AM (#31351586)
Right that's what they say but how do I or anyone else redeem that?

Otherwise there's no need for physical backing right?

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