Tether maintains its dollar peg defying critics

“markets can remain irrational a lot longer than you and I can remain solvent.”[1]

If you believe that Tether is essentially a fraud and its primary economic function is money laundering then it stands to reason that the people doing the laundering are going to put a lot of cash behind maintaining the peg.

On the other hand if you believe Tether is legitimate then you must trust the audits which suggest that it is backed by real-world cash or cash equivalents approximately equal in value to its market cap (modulo credit risk which we can't say anything about because the mix of assets wasn't disclosed last time I checked).

Either way, it stands to reason that the peg will be maintained right up until it suddenly breaks. I don't think there's many people who expect Tether to trade stably at some sort of rational discount to dollars.

[1] Gary Shilling (often misatrributed to Keynes) https://quoteinvestigator.com/2011/08/09/remain-solvent/

Pretty cool how much Bloomberg cares about Tether! I'm sure they're impartial.

Really, it makes me think the end must be coming soon for Tether. If Binance feels the need to pay for puff pieces...