Because people are interested in buying the USDT more than anything for whatever reason, that increases the demand for it along with the price.
True.
And there is another reason and most common, people just pay using the money that is involved in a hack or scam so they just want to get rid of that money from their bank account as quickly as possible, so they offer more than market price to attract the buyers so they can take away the crypto and leave the traders with bank freeze and cases to face.
This is actually half truth. Because, at
@CryptoIndiaUnited OTC, which is being referred here for USDT rate, USDT sellers will hardly accept UPI/IMPS at their bank account. Deals take place mostly through Cash Deposit Machine (CDM), Cardless Cash Withdrawal (CCW) or QR Cash Withdrawal (QCW). In the specific cases you have mentioned, where deals take place way over market rate, USDT sellers withdraw fund in Cash through CCW or QCW. The tainted account provided by USDT buyer becomes cashless before getting frozen. So, effectively, USDT sellers do NOT face any account freeze or anything.
So don't just trade based on the price alone, pick the right and trusted trader who always pay lesser than the market price.
In P2P, USDT sellers should never accept UPI/IMPS at their bank account, whatever the rate may be. Binance users are fully KYC, but P2P sellers still face account freeze left & right.
