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Somebody will need to take the counter-trade (the arbitrage dude) and unless he can redeem to close the circle, he is going to stop.

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 :)

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No, they don't. There doesn't need to be an arbitrage. If you have 10 USDT and I give you 9.90 USD for that...nothing else needs to happen.

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".

> No, they don't. There doesn't need to be an arbitrage. If you have 10 USDT and I give you 9.90 USD for that...nothing else needs to happen.

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.

I’m a hedge fund trader. It’s not an arbitrage. It’s the furthest thing from an arbitrage.

It's arbitrage if you can close the loop with little or no risk. Preferably immediately if you already have a buyer lined up. Otherwise, you incur more risk -- you might be caught holding the bag when the music stops.

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