On: Tether Mints Record 2B USDT in One Week

[sethgecko]

Of course HN in it’s infinite wisdom can’t get the causal connection between BTC rising and tether printing right.

Tether is being printed because btc is pumping. They have to print tether to maintain the peg at 1$. If the price keeps rising due to demand for tether they need to print and sell tether.

It does not matter if you can redeem your tethers for dollars because they buy tether when the price goes below 1$ to maintain the peg.

[dang → sethgecko]

Please don't use allcaps for emphasis on HN - it's basically yelling and the site guidelines ask you not to: https://news.ycombinator.com/newsguidelines.html. You can put *asterisks* around text and it will get italicized. And (this just in!) it's much easier to get literal asterisks now: https://news.ycombinator.com/formatdoc

Also, please don't post supercilious dismissals of the community. It's tedious and dyspeptic. If you're commenting here, you're as much "HN" as anyone else is. If you know more than other users, that's wonderful—please share some of what you know, so the rest of us can learn.

https://hn.algolia.com/?dateRange=all&page=0&prefix=true&sor...

[PragmaticPulp → sethgecko]

> Tether is being printed

Tether doesn't claim to "print" anything. Supposedly, Tether is 1:1 backed by actual dollars being paid in to the Tether corporation.

If Tether corporation is "printing" Tethers without having received corresponding deposits, that's the fraud.

[sethgecko → PragmaticPulp]

Yes it is backed because when they print a new tether they sell it for 1$ which they put it in their treasury.

[mekster → sethgecko]

No, people sell BTC to get Tether, in which case, what did the previous BTC owner buy if it's not backed up with USD?

[Lerc → sethgecko]

Who sells tether for less than a dollar for them to buy? Surely if it is pegged to a dollar you should be able to hold out for that price.