USDT - Tether

Yea it's pretty meme.

I have to question, what in the fuck is going to happen on say Poloniex when everyone hides in USDT while bitcoin is crashing.

It's not like you can just transfer USDT to the Tether website then cash out. It would be impossible, because the number of Tethers in existence has to match the number that they have in their reserve.

But if all these people are trying to get the fuck out of Bitcoin which has more market value than the amount of money the group distributing these tethers have in reserve.

Then I assume chaos will occur, people will have to cash out of USDT to real USD at a decreased rate, like 0.5 USDT to 1 USD. Assuming they wanted to, which they probably would is the crash was serious enough.

>>2505590
>I have to question
To answer your questioning, they hold 1 USD for each USDT and there's some kind of way for the public to confirm that they do indeed hold that amount of money.

>>2505590
>when everyone hides in USDT while bitcoin is crashing
There is not going to be enough USDT for exchange in those times

>>2505639

Yea but how is that possible, if the majority of Bitcoin on Poloniex alone was transferred all into USDT.

Wouldn't that exceed the amount of USDT that they have in reserve?

>>2505683

*Of USD in reserve*

>>2505590

Poloniex came up with this Tether scam to stave off their looming insolvency. They are now not obligated to pay out ANY fiat when people run for the exits.

>>2505683
>Wouldn't that exceed the amount of USDT that they have in reserve?
Correct. Whenever there is a BTC crash, there is a subsequent USDT run that causes its value to actually increase above $1.