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A comment on Tether Required Recapitalization in May 2022. Parent comment

Re:Tether Required Recapitalization in May 2022 by graeme on Friday May 20, 2022 @12:35PM (#31449692)
It’s not just 0.1% off the peg. It’s 0.1% off and facing large redemptions.

That makes the peg loss seem significant

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Re:Tether Required Recapitalization in May 2022 by grapehut on Friday May 20, 2022 @12:43PM (#31449817)
The large redemptions are what is causing them to be 0.1% off the peg...
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Re:Tether Required Recapitalization in May 2022 by thebean11 on Friday May 20, 2022 @01:01PM (#31450056)
Or is being 0.1% below peg causing large redemptions? People buying USDT at a discount and redeeming at face value.
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Re:Tether Required Recapitalization in May 2022 by kasey_junk on Friday May 20, 2022 @01:28PM (#31450339)
Thats why breaking the peg is so bad. Its a visious cycle so both are correct.
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Re:Tether Required Recapitalization in May 2022 by thebean11 on Friday May 20, 2022 @02:17PM (#31450804)
No it's not..people buying in order to redeem brings the price closer to the peg, not further away.
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Re:Tether Required Recapitalization in May 2022 by graeme on Saturday May 21, 2022 @03:20PM (#31460915)
Definitely. But a lot of people have looked at the small depeg and said “it’s not big, and they’ve depegged in the past. What’s the issue?”

It’s seeing the redemptions that show it is significant

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