Tether decouples demand from price? So I don't understand how Tether (USDT) works. I hear two contradicting things about it. First, is that it is pegged to the dollar, plus or minus a few cents here and there. Second, that you can buy or sell freely from some other cryptos. 

BUT, usually when lots of people are buying a crypto, it's price will go up. But tether seems to somehow decouple demand from price. I thought that was impossible?
the company behind usdt (tether) can create and sell new usdt (eg. if the price is greater than 1$) and buy them back (eg. when the price is smaller than 1$). they say they have enough money to buy all usdt back (but many people are in doubt about it). furthermore the community knows that tether tries always to adjust the price of usdt to 1$. so only very few people will sell usdt for &lt;1$ or buy it for >1$ (because it is probably uneconomical). so the trader-community is "helping" tether a little bit by continuing mostly accepting this 1usdt=1$-"rule" which could be useful for everyone on a long-term basis.