And back up to 0.99 on Coinbase as I type this: <a href="https://pro.coinbase.com/trade/USDT-USD" rel="nofollow">https://pro.coinbase.com/trade/USDT-USD</a><p>Meanwhile, Alameda (SBF/FTX's trading arm) is apparently shorting Tether.
<a href="https://twitter.com/mhonkasalo/status/1590665714490544128" rel="nofollow">https://twitter.com/mhonkasalo/status/1590665714490544128</a><p>Which is particularly interesting since they're known to be one of Tether's largest customers. The only rational explanation I can think of is that they think Tether is primed to tank, and they're trying to beat the rush to the exits like Goldman Sachs pouncing on Bear Sterns.
Everytime tether goes 0.99c these wishful thinking threads appear. No thread is created when the value is 1.01. Perhaps those fluctuations are the norm price on exchanges?<p>I’m not defending tether (I’m going to be downvoted to oblivion anyway because these types of threads are based on spite rather than logic) but it always have the “<i>raises fist</i> this time I got you spider man” vibe.
"A representative for Tether told CoinDesk in an email that issuer Tether Global is unexposed to both Alameda and FTX."<p>Well, except in the broader sense of crypto contagion. Tether is certainly exposed to BTC and ETH, both of which are plummeting this week.
I assume that holders of USDT are, perhaps, concerned that Bitfinex and Tether are similar to the FTT token. They may wonder if Bitfinex has Tether on its balance sheet and that the Tether is not actually backed by reserves as claimed.<p>In May, Tether weathered a significant liquidity crunch and recovered its peg by July.
I really don't know enough about this topic to judge the impact, but from the data I can see this looks like it depegged lower than in the previous incident that was widely reported. That one was to 0.995 and this one is to 0.990 (at the moment I looked it up).
I am waiting for a panic spreading tweet from CZ. He has his own stable coin so it would make sense to spread panic here. But this may be giving the game away a little too obviously, so maybe now isn’t the time.<p>I do expect unless something else drops that Tether will survive this.
It’s seeing significant borrowing on the DeFi platforms too, perhaps in anticipation of a price collapse (which would make it easier to pay back):<p>Aave, 60% to borrow: <a href="https://app.aave.com/reserve-overview/?underlyingAsset=0xdac17f958d2ee523a2206206994597c13d831ec7&marketName=proto_mainnet" rel="nofollow">https://app.aave.com/reserve-overview/?underlyingAsset=0xdac...</a><p>Compound, ~40% to borrow: <a href="https://compound.finance/markets/USDT" rel="nofollow">https://compound.finance/markets/USDT</a>
6 months ago as well: <a href="https://news.ycombinator.com/item?id=31349988" rel="nofollow">https://news.ycombinator.com/item?id=31349988</a>
> USDT is trading at 97 cents on several bourses, and briefly fell as low as 93 cents on the Kraken exchange.<p>Is <i>bourses</i> crypto jargon I'm not aware of?