You’re referring to selling the USDT back to the market at the market rate. OP and GP are referring to selling USDT back to Tether at its face value when that face value has deviated from the market price.

That's not redeeming. Redeeming is sending your Tethers to Tether and receiving a USD wire transfer. Fairly few entities can do this. We can't do it yet.

So imagine you get what you want here, and tether open trading for all customers down to those who want to redeem 20 cents...

Ignoring that the last person who tried to create a digital token pegged to USD.

Ignoring all the AMC/KYC risks

You'd actually be happy? You truly wouldn't just move onto accusing them of facilitating money laundering on a massive scale as tethers can move across borders for a few cents?

I doubt this.

>Fairly few entities can do this

What do you mean? You just have to complete the fairly simple KYC process and you can start redeeming.

Perhaps you mean that fairly few entities have bothered to do this?

It's not clear that we will succeed at the fairly simple KYC process. A lot of exchanges have fairly stringent requirements around customers' directors' citizenships, and those that do not often like to play 100 round matches of email tag with us.

If you work for Tether and you created a new Hacker News account to offer to onboard us, that sounds great :)

The average trader does not have 100k USDT lying around unfortunately. Though I suppose Mr Paolo has no time to talk to poor people, just like Mr Kwon

https://www.businessinsider.in/cryptocurrency/news/terrausd-...

100k USDT is a small amount of money for anyone trading professionally.

If you buy/sell $100k USD and pay the relevant transaction fees; and if tether doesnt run of out capital just as you are doing it.

Which, at <1$/$, tether should now be bankrupt. It's presently advertising free money: just buy at <1 and sell back at 1. If it were actually possible to do that, tether would be out of capital tomorrow.

That's not really true. The amount of redemptions needed to restore the peg is capped at the size of their reserves, and in reality is probably a lot less.

I think a lot of commenters get confused about why big crypto firms don't defend the peg more aggressively. The reason is that defending the peg less aggressively is more profitable.

the argument is not that you can’t exchange 1 usdt for 1 usd today.

the argument is that nobody, not tether and not any exchange, is committed to maintain this exchange rate peg. in fact the topic of this thread is a discussion on how (long) and whether the peg can be maintained.