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.
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.