Re:Tether starting to lose its peg too, after Terra did
by BbzzbB on Thursday May 12, 2022 @05:12AM
(#31351196)
Market pricing and arbitrage pegs it, is how I understand it.
It's "worth" whatever price the bid-ask spread meets at.
It's exchangeable for USD to the company. As long as there isn't a bank run where they'd stop fulfilling exchanges, when the price drops below $1 anyone can arbitrage it. It reached like 95 cents earlier, anyone could've bought millions of it and got USD for it at like 6% profit. It creates buy pressure/price support as the price falls.
It's "worth" whatever price the bid-ask spread meets at.
It's exchangeable for USD to the company. As long as there isn't a bank run where they'd stop fulfilling exchanges, when the price drops below $1 anyone can arbitrage it. It reached like 95 cents earlier, anyone could've bought millions of it and got USD for it at like 6% profit. It creates buy pressure/price support as the price falls.