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There is also more troubling possibility. Some USDT-only exchanges may be running fractional-reserve shops. Now that people are selling crypto for USDT and try to withdraw, exchanges don't really have that USDT, and need to buy it asap to maintain liquidity.

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SBF

@SBF_FTX

Mar 31, 2020

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 twitter.com/SBF_FTX/status…

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And now consider that

@FTX_Official

accepts all type of stablecoins as deposits, even HUSD. There's one missing: Tether. Considering $USDT is by far the largest you may wonder if

@SBF_Alameda

has a really good reason not to include that.

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They accept usdt.... go check again

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Dude are you *really* going to fight over this? Lol

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and

To clarify: we do take USDT deposits but treat them as a separate coin from 'USD'. We consider USDT to be generally liquid, but the creations/redemptions are not instant/free which makes it not a good fit for the USD basket.

9:45 AM · Mar 31, 2020Twitter Web App

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