No, trading is not redeeming. The fact that you will buy it from me or swap me USDC does not prove that they have any reserves.
So again I ask - how do we have any proof that Tether has the reserves they claim they do?
So again I ask - how do we have any proof that Tether has the reserves they claim they do?
USDT are redeemable to your bank account if you have a good sizable balance (talking 7-8 figures). You'll get it deposited from some of their offshore shell companies. But you didn't hear it from me :)
But the degree that this is happening pales massively in comparison to the billions that are sat on exchanges and recycled.
Tether would be the first legitimate billion dollar operation where people have to say things like "but you didn't hear it from me".
I'm not an expert, so I might be wrong (seriously, not sarcastically). I _think_ this is technically arbitrage even though you never complete the loop.