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This article goes to great alarmist lengths, past the point of being deceiving. Just the very first line:

> One of the world’s most widely traded virtual currencies faces renewed doubts about its stability [...]

Tether is nothing in terms of crypto currency penetration. It does not even have a percent of daily trading. Then a few paragraphs down:

> [...] within an hour of the attorney general’s statement and Tether slid 1.4 percent.

1.4 per cent. Even big cap stocks fluctuate that much some days.

> At the time of the correspondence, Bitcoin was trading at around $6,500. It dropped 4.7 percent to $5,236.03 at 12:10 p.m. in Hong Kong on Friday.

So they mention a price from 8 months ago, and then mention yesterday's price, implying that it fell that much because of this event.

Garbage journalism.

For something pegged 1:1 with the US dollar a 1.4% decrease is quite unusual.

It's volume is 2nd only to Bitcoin per [1]coinmarketcap.

With your 3rd point about pricing changes, yeah correlation/causation, it's a theory that is plausible though.


You would think, but not for tether. I've seen it sit comfortably at 98-99% and even once dip as low as 89%.

If the peg was actually backed by anything then yes, that'd be unusual.

Not really no, it depends on how much liquidity of a certain type is worth compared to liquidity of another type. Given the volatility in crypto markets this tends to change drastically in different times.

Same as why lending rates for crypto & fiat can go from 0.0001% to 0.08% (per day for example) in a matter of hours based on certain sudden price action.

> One of the world’s most widely traded virtual currencies

Looking at coinmarket cap just now it's No 2 by 24hr trading volume. Bitcoin $18bn, Tether $16.5bn, Ethereum $8bn, all others less than 4.

5236.03 is not 4.7% less than $6500.

If those were the prices before and after, the drop was 19.45%.

journalism in crypto space is indeed ridiculous

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