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0 pointsqeternity5y ago0 comments

No, they don't. There doesn't need to be an arbitrage. If you have 10 USDT and I give you 9.90 USD for that...nothing else needs to happen.

But the degree that this is happening pales massively in comparison to the billions that are sat on exchanges and recycled.

Tether would be the first legitimate billion dollar operation where people have to say things like "but you didn't hear it from me".

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jrh2065y ago

> No, they don't. There doesn't need to be an arbitrage. If you have 10 USDT and I give you 9.90 USD for that...nothing else needs to happen.

I'm not an expert, so I might be wrong (seriously, not sarcastically). I _think_ this is technically arbitrage even though you never complete the loop.

qeternityOP5y ago

I’m a hedge fund trader. It’s not an arbitrage. It’s the furthest thing from an arbitrage.

tylerhou5y ago

It's arbitrage if you can close the loop with little or no risk. Preferably immediately if you already have a buyer lined up. Otherwise, you incur more risk -- you might be caught holding the bag when the music stops.

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