Hello, I would like to ask, how centralized stablecoins keeps their value?
If people start to don´t trust Tehter, they are able to sell a bit under 1 usd price. And price USDT / USD can drop for example to 0,97, how can Tether cummunity return value closer to 1,00 if drop to 0,97 happen for example in all bigger exchanges and all their pairs?
I read lots of articles about Tether bot there is only theory that Tether hold same value as reserves, but I didn´t found next practical steps...
Thank you for reply
Exchanges probably. They probably make a deal with the tether issuer to keep it at 1:1 with the USD so no matter how much you wanna sell they'll buy or try to buy your tokens from 1 usd each. Sometimes as you have seen few days ago, the sell pressure on USDT gets overwhelmingly powerful, it starts to de-peg from the USD. Tether indeed holds some "stuff" to back their tokens but they are not transparent about it. Pretty shady imo.