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USDT won't crash

USDT is a stablecoin issued by Tether, led by Bitfinex. There were instances where USDT holders questioned its issuance in the US, causing the USDT price to drop by 20% to 30% at one point. In 2019, USDT experienced a significant fluctuation, with prices dropping to $4.

The issuance mechanism of USDT is that for every USDT issued, one dollar must be deposited in a designated account. However, I cannot assert that Tether has 100% reserves, but at least 90% is sufficient.

The reliability of a currency depends on its liquidity, not the collateral behind it. If you take dollars to the Federal Reserve, you can't exchange them for anything. Does that affect the liquidity of the dollar? As long as the market continues to accept it, it is valid; this is the power of liquidity. #BabyMarvin合约 F9

From this perspective, USDT does not need excessive collateral; a 10% reserve is enough to meet market arbitrage demands.

So, isn't USDT a form of "counterfeit money"? Indeed, but isn't the dollar itself also a form of "counterfeit money"? The Federal Reserve can print money at will; how is this different from counterfeit money dealers?

In summary, as long as the dollar doesn't collapse, USDT won't collapse.

#Will the end of the year be bullish or bearish? #How will the war affect the crypto market? #Tether denies investigation and sanctions #Market watch before the US elections #Hackers return stolen crypto assets to the US government #BabyMarvin合约地址F9C7