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On kraken, one can short Tether against the US Dollar. Since Tether is usually pretty close to $1, I wonder if it’s worth it to open a short in case it’s all falling apart. I mean, in case of a crash the price of tether would most certainly fall, right?

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Counterparty risk.

If Tether controls the price of Tether, they can simply cause Tether to spike to $2 or $10 for a few days or weeks, before leaving. Tether may drop below $1 afterwards, but you might get short-squeezed on the way out.

There's no way you can win vs an entity that fully controls the price.

That's a good point, there's almost no downside to shorting Tether besides the interest, since it would never go much above USD.

Given that the interest must be wild, no?

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