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Tether fails bond pricing 101.

If you have an IOU from the US government for $100 it's worth about $99 on the open market.

If you have an IOU from a highly rated US company (e.g. Ford) for $100 you'd expect it to be worth about $94.

Yet we're somehow supposed to believe than an equivalent IOU from tether is worth more?!

Oh and the US Government and Ford will probably pay you some form of interest if you hold it long enough...

It simply doesn't add up!



This is the part that confuses me too.

If the market believes Tether is not backed by real currency, shouldn't it be trading at a discount to USD?


I think the premium is a "convenience fee" people are currently willing to pay.




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