Since last week, no subject has created more controversy than Tether's. Indeed, last week, the price, normally at $1 per token, had fallen massively to a low of $0.85, a decrease of 15%, creating at the same time a partially artificial pump on the USDT and real pairs, via the transfer of capital.
Being able to unravel the truth from the false is for the moment very complicated and there are many rumours.
While several influences have positioned themselves with the conviction that USDT will regain its initial value, the community remains mixed and the risk is certain.
Looking through our archives, the first time we mentioned the risk of USDT was in January, and many people thought it was a scam. We now find the same ideas again, except that Tether's situation has changed quite a bit.
Among the rumours, one particularly caught my attention. That of a USDT withdrawal from the stable-coin markets. Indeed, their lack of capital in reserve, the loss of confidence and the arrival of many other stable-coins more rigorous in terms of transparency, could push them to withdraw from the race.
One element that would support this theory is precisely the fall in price and the removal of tokens. Indeed, the fall in price could be a strategy to buy back, at a low price, the tokens, which are supposed to be supported by $1 each.
Imagine this: I produce chocolate bars with gold in them that buyers can always buy or sell me at the same price. I tell my investors to give me funds that I will keep in cash (and not spend), just to have some security, and that each bar will be worth $1, and for $100 in reserve, I can create and sell 100 bars.
Then I sell the 100 bars (so I have $100 in reserve and $100 in the current account).
After a while, I want to stop my business. I will have to pay back the investors, but first I have to buy back the bars (because the reserve must be equivalent). So I break the price and buy back the 100 chocolate bars for $0.9. I then have $10 left in the current account ($100 - (10x0.9$)).
Result? I paid back the $100 to the investors and I won $10 on the redemption of the bars. Clever, isn't it?
Is this the reality? It's not impossible, and the coming weeks will tell us. Of course, caution should be exercised.