1. A Quick Introduction to USDT
USDT is a digital token issued by an entity called Tether Limited, designed to mimic the value of the US dollar at a 1:1 ratio. It is defined as a 'Stablecoin' primarily used for:
1. As a low-volatility refuge within trading platforms.
2. As a medium for quick transfers between digital asset exchanges and banks.
3. For settling transactions in derivatives markets.
1-1: Why does the price of USDT matter if it is nominally stable?
Despite its theoretical peg to the dollar, slight deviations from $1.00 occur due to:
Immediate supply and demand on each platform.
Withdrawal and deposit speed (liquidity friction).
Trust risks in Tether's reserves.
2. Pricing Mechanisms and Differences Between Platforms
2-1: Supply and Demand Model
Minting: Authorized institutions send dollars to Tether Limited and receive new USDT tokens.
Redemption/Burn: Redeeming USDT for dollars, which reduces the total supply.
> Important: Individuals often cannot burn USDT directly; therefore, they may sell it in the secondary market, creating small price gaps.
2-2: Examples of Differences
> Larger deviations occur during crises (Example: Spring 2023 when USDT traded at $0.97 for several hours following reserve concerns).
3. Factors Affecting the Price Globally
1. Credibility of the Reserve
Quarterly reports show the types of supporting assets (Treasury bonds, cash deposits, commercial paper). Any doubt about the quality of these assets drives traders to dispose of USDT,
