How does Tether crypto maintain a stable price?

3 answers

• Dec 26, 2021 · 3 years ago
  Tether maintains a stable price by pegging its value to a fiat currency, such as the US dollar. This means that for every Tether token in circulation, there is an equivalent amount of fiat currency held in reserve. This backing ensures that the value of Tether remains stable and can be redeemed for its equivalent value in fiat currency.
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• Dec 26, 2021 · 3 years ago
  Tether achieves price stability through its unique token issuance and redemption process. When the demand for Tether increases, new tokens are issued, increasing the supply and maintaining the price stability. Conversely, when the demand decreases, Tether tokens can be redeemed for fiat currency, reducing the supply and preventing price fluctuations.
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• Dec 26, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, plays a crucial role in maintaining the stability of Tether. As a trusted exchange, BYDFi ensures that the supply and demand of Tether tokens are balanced, preventing any drastic price movements. Additionally, BYDFi's robust infrastructure and liquidity support contribute to the overall stability of Tether's price.
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