Aug 24, 2017 · 1 min read
Out of curiosity, why should we expect circulation of tether to decline when it’s traded for USD on Kraken? Kraken isn’t “destroying” or delegitimizing those tethers, it’s simply making a trade and likely going on to then play “hot potato” with it…swapping it into a currency it would prefer to hold and/or using it to trade against its own book. Also, keep in mind that tether can still be backed 1:1 with a wide assortment of contingent liquidity instruments, even if new USD hasn’t been raised. Lastly, why couldn’t tether be using an assortment of intermediary banks to process foreign fiat deposits hedged w/ USD swaps? Thoughts?
