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A comment on Tether Withdrawals Top $10B. Parent comment

Re:Tether Withdrawals Top $10B by function_seven on Tuesday May 24, 2022 @06:37PM (#31498368)
Why not have a step between #1 and #2? "Tether immediately sells the BTC for $10"

There's still some risk if the price is rapidly moving and they can only get $9.99 for the BTC you sent them, but that could be mitigated by ordering the transactions to keep the peg: you send $10 of BTC, they sell it (and "only" get $9.99), they give you 9.99 USDT and say, "tough, what you thought was $10/BTC was really $9.99/BTC"

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Re:Tether Withdrawals Top $10B by jakelazaroff on Tuesday May 24, 2022 @08:28PM (#31499193)
> Why not have a step between #1 and #2? "Tether immediately sells the BTC for $10"

Yes, why indeed? That's a great question for Tether! If they were holding enough actual cash reserves to cover all the USDT in circulation, there wouldn't be an issue.

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Re:Tether Withdrawals Top $10B by function_seven on Tuesday May 24, 2022 @09:47PM (#31499727)
My apologies, I was talking about a hypothetical true stablecoin not whatever Tether is.
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