Tether Is Breaking Its Peg to the Dollar

#1

Post by profuse99 » Sun, Jan 28, 2018, 6:02 PM UTC

Tether Is Breaking Its Peg to the Dollar
mktstk.com

Re: Tether Is Breaking Its Peg to the Dollar

#2

Post by spraak » Sun, Jan 28, 2018, 7:03 PM UTC

Well that didn't last long.

Re: Tether Is Breaking Its Peg to the Dollar

#3

Post by brokensegue » Sun, Jan 28, 2018, 7:08 PM UTC

I'm a USDT skeptic but a 2 cent deviation isn't much considering it has often deviated by more than that in the other direction. If it hits 90cents on the dollar I think things are serious.

Re: Tether Is Breaking Its Peg to the Dollar

#4

Post by empath75 » Sun, Jan 28, 2018, 7:12 PM UTC

The usdt/usd pair on most markets it trades on is heavily manipulated with wash trading. It doesn’t take a big buy order for bitfinex to bounce the price back to $1.

What you really need to watch is the widening spread in price between bitfinex and other exchanges which implies that people are buying crypto at inflated usdt prices because they don’t trust usdt any more.

I think if either that continues or the price of tether continues trading below 1.00, it’ll trigger a panic eventually.

Re: Tether Is Breaking Its Peg to the Dollar

#5

Post by simik » Sun, Jan 28, 2018, 7:12 PM UTC

brokensegue wrote: post #3

I'm a USDT skeptic but a 2 cent deviation isn't much considering it has often deviated by more than that in the other direction. If it hits 90cents on the dollar I think things are serious.

Yep, zoom out a bit more and this recent dip is not that bad. https://cryptowat.ch/kraken/usdtusd/1d

But still, I'm a skeptic too.

Re: Tether Is Breaking Its Peg to the Dollar

#6

Post by digianarchist » Sun, Jan 28, 2018, 7:14 PM UTC

brokensegue wrote: post #3

I'm a USDT skeptic but a 2 cent deviation isn't much considering it has often deviated by more than that in the other direction. If it hits 90cents on the dollar I think things are serious.

That's still approx a $44 million loss on their market cap.

Re: Tether Is Breaking Its Peg to the Dollar

#7

Post by bhouston » Sun, Jan 28, 2018, 7:18 PM UTC

I am reminded of this: https://en.wikipedia.org/wiki/Black_Wednesday

George Soros broke the Bank of English's attempt to maintain a minimum exchange rate for the Pound against various other European currencies.

It was this experience that taught me that you can not cost free fix the exchange rate between currencies unless you are using "magic". And USDT has always seemed magical to me.

BTW: https://www.coindesk.com/tether-confirms-relationship-audito...

Re: Tether Is Breaking Its Peg to the Dollar

#8

Post by 0x0 » Sun, Jan 28, 2018, 7:19 PM UTC

Related: http://www.tetherreport.com/

Re: Tether Is Breaking Its Peg to the Dollar

#9

Post by hawktheslayer » Sun, Jan 28, 2018, 7:19 PM UTC

I'm surprised they didn't go with the headline that practically wrote itself: Tether Becomes Untethered

Re: Tether Is Breaking Its Peg to the Dollar

#10

Post by empath75 » Sun, Jan 28, 2018, 7:20 PM UTC

brokensegue wrote: post #3

I'm a USDT skeptic but a 2 cent deviation isn't much considering it has often deviated by more than that in the other direction. If it hits 90cents on the dollar I think things are serious.

At one point a few hours ago, the buy side of the depth chart was so weak that a million usdt sell order would have dropped the price to a penny.