> Tether's reserves only matter when people try to redeem Tethers. This is currently not possible.
This is why being liquid and freely trade-able matters. Tether is fully redeemable if you can trade it against other crypto/stable coins. Want to redeem USDT? exchange it to USDC and then withdraw to your bank account.
Somebody will need to take the counter-trade (the arbitrage dude) and unless he can redeem to close the circle, he is going to stop.
USDT are redeemable to your bank account if you have a good sizable balance (talking 7-8 figures). You'll get it deposited from some of their offshore shell companies. But you didn't hear it from me :)
