Quote from: Samemagazine on October 18, 2018, 10:36:24 AM

Anyone know why tether is allowed to trade on exchanges at various prices? If it's pegged to the dollar, shouldn't it always trade at $1? Is it because the value changes depending on what currency it's being traded with?

It seems like any exchange that has USD should value USDT at $1USD

Only Tether and Bitfinex will redeem USDT for USD. That's where it's worth $1. All the other exchanges just allow you to trade with it, which means that it can -- and does -- fluctuate above and below $1.

Quote from: HeRetiK on October 18, 2018, 11:56:07 AM

That depends which way the money leaves. People selling USDT does not equate people leaving crypto for good. Currently the majority seems to flow towards BTC, rather than USD:

https://coinmarketcap.com/currencies/tether/#markets

That's the interesting thing about this conundrum. Normally, we think of "FUD" as having a negative effect on price. With Tether FUD, it can drive cryptocurrency prices up as people exit back to BTC.