1) Alright, time for some answers!
My brief explanation is roughly:
There's huge buy-side demand for USDT. It's coming from:
a) OTC flow, primarily from Asia
b) People selling BTC --> USDT to hedge positions
c) People selling BTC --> USDT to reduce risk
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Hey Sam, this is a very enlightening take, thank you for sharing. Do you mean with “a)” that there is OTC demand for Tether for its own sake, or to have Tether to fulfill other OTC orders? Thank you
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For its own sake eventually--though it does get passed around between a few desks in the middle