If I want to pay Bob $100, I will buy 100 coins, never mind whether they currently cost $0.998 or $1.002 each on my particular exchange.
So the issuer needs to constantly mint or burn tokens to match the market demand in such a way that it stays as close to $1 as possible.[1]
>For someone to sell something someone else needs to buy the same thing.
That someone is not some rando person, that someone is marketmaker whose business is in filling out the orderbook.
[1] https://www.coingecko.com/en/coins/tether – see the chart for market cap, since the tokens costs $1 it is almost the same as the chart of total number of tokens over time
If I want to pay Bob $100, I will buy 100 coins, never mind whether they currently cost $0.998 or $1.002 each on my particular exchange.
So the issuer needs to constantly mint or burn tokens to match the market demand in such a way that it stays as close to $1 as possible.[1]
>For someone to sell something someone else needs to buy the same thing.
That someone is not some rando person, that someone is marketmaker whose business is in filling out the orderbook.
[1] https://www.coingecko.com/en/coins/tether – see the chart for market cap, since the tokens costs $1 it is almost the same as the chart of total number of tokens over time