How exactly does Tether work?

[Rockie1234]

Let's say there's a big bear market and everyone is selling their Tethers on an exchange like Bitfinex. I understand it is pegged to the dollar, but what happens if the price of Tether goes too high or too low above/below $1? Is there some mechanism that corrects the situation?

[MikeyVeez]

Tether is a coin issued on Ethereum and Tron network, every token is represented by 1USD. Dollars are stored in banks, but we do not know which banks exactly store these USDs.

[Febo]

Let's say there's a big bear market and everyone is selling their Tethers on an exchange like Bitfinex. I understand it is pegged to the dollar, but what happens if the price of Tether goes too high or too low above/below $1? Is there some mechanism that corrects the situation?

It should not go anywhere higher or lover then $1. Exchanges should always have enough tether or USD to match any offer. So there is no fear of what you are saying.  Tether is USD. It is simple as that.

[bartolo]

That has happened before when there have been FUD news about Tether, the price has been as low as 84 cents and it has corrected itself when the company behind Tether has reassured holders answering to the allegations but if someday those accusations against Tether turn out to be real, there will not be anything that can prevent the price from going to zero.

[republicrypto]

Let's say there's a big bear market and everyone is selling their Tethers on an exchange like Bitfinex. I understand it is pegged to the dollar, but what happens if the price of Tether goes too high or too low above/below $1? Is there some mechanism that corrects the situation?

well,, tether is a stable coin my friend, wich mean the value will stay at $1,
sometimes a little bit lower or a little bit higher my friend, just a liitle bit for example sometimes $0,99 or $ 1,01
regards

[acoco]

Let's say there's a big bear market and everyone is selling their Tethers on an exchange like Bitfinex. I understand it is pegged to the dollar, but what happens if the price of Tether goes too high or too low above/below $1? Is there some mechanism that corrects the situation?

as a complainant of the bittrex, the tether has his own account where 1USDT is provided with 1 dollar, if everyone demands nahad dollars to everyone and gives out, the second question is that they have it on paper, and the investigation is underway SEC

[bittick]

Let's say there's a big bear market and everyone is selling their Tethers on an exchange like Bitfinex. I understand it is pegged to the dollar, but what happens if the price of Tether goes too high or too low above/below $1? Is there some mechanism that corrects the situation?

that depends on the demand in the exchange site and you can see the rates in various exchange sites are different, and when the price of tether goes too high or too low and nothing happens. But the holders will be got less and more money based on the price of tether.

[btccrusher]

Tether won't be that volatile. 1 Theter represents 1 USD equal, however, it can go +-0.02 USD a maximum. If you see anything more than that amount is extremely alarming that Theter is not pegged to the US dollar. There are different forms of Tether, for example in erc20, trc20, omni chain etc. You can alternatively use other stable coins like GUSD, USDC etc.