Stablecoins: the latest buzzword in cryptoland. Long before the hype, Tether was already reigning as the most utilized USD pegged currency. Surrounded by doubt and controversy, Tether was (and still is) a very hot topic among traders and crypto enthusiasts alike. How is the allegedly 100% USD backed fiat-collateralized coin holding up in today's bear market?
This paper studies the efficiency and price formation of bitcoin and other cryptocur- rency markets. First, there are large recurrent arbitrage opportunities in cryptocur- rency prices relative to fiat currencies across exchanges that often persist for several days or weeks.