There’s nobody to trade $70B USDT with except Tether Inc and they’re not paying ...

paulgb · on Nov 2, 2021

If you could borrow enough USDT though, you could still break the peg without transacting with Tether directly:

- borrow a ton of USDT

- trade it for USD on exchanges, eating away at organic demand as well as the reserves used to keep the peg

- eventually (presumably) the peg will break and the price will collapse, and you can buy back the USDT for cheap to repay the loan

The trouble is getting that USDT-denominated loan, though.

arcticbull · on Nov 2, 2021

Agreed, the difficult part is getting a USDT-denominated loan without crypto collateral and counter-party risk.