Tether Collapse Could Bring Bitcoin Black Friday

What is Tether?

Tether (USDT-USD) is the largest and most well known stablecoin; or a cryptocurrency pegged to the value of a large fiat currency, in this case the US Dollar. While it’s true that Tether operates on Omni chain, which is built on top of the Bitcoin (BTC-USD)(COIN)(OTCQX:GBTC) blockchain, that does not mean that you can trust it. So, how does Tether keep the value of one USDT at $1?

  1. Tether claims that all USDT are backed 1:1 by US Dollars.
  2. Tether uses arbitrage across exchanges to make it happen.

Number 1 is the primary source of concern, as many have called it into question.

What is the purpose of Tether?

According to the Tether homepage, Tether is “Digital money for a digital age.” But,

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