Topic: Could Tether (USDT) be really called decentralized cryptocurrency? (Read 832 times)

We already saw in September how Tether returned $1 million in USDT that was sent to a non-existent address. Therefore, it is impossible to say that USDT is a decentralized coin. Today, there are only two decentralized stablecoins-DAI and USDJ. All other stablecoins are centralized, including USDT.

Completely agree with you, mate. While many people Tether to be a "decentralized" stablecoin, the hard truth is that it's not. Operating on a decentralized network does not make the stablecoin itself free from third-party interference. Everything will depend on how the stablecoin was coded by the developer. Considering that Bittrex can freeze USDT balances on the Blockchain, the world's most popular stablecoin becomes nothing more than another banking system. This goes against what crypto and Blockchain tech were created for. I guess most people don't mind as long as they're able to make money in the long run. Tether proves to be extremely convenient for day trading and wealth preservation as it mimics traditional Fiat (USD) in every way. It's so much better than cashing out crypto to a bank account.But when it comes to achieving true financial freedom and censorship resistance, traditional cryptocurrencies like Bitcoin and Ethereum prove to be the winner.

Nonetheless, people will eventually get to know everything about Tether as it becomes more popular in the mainstream world. They'll be able to differentiate centralized and decentralized stablecoins with ease. Veterans/experts in the crypto space already know about Tether's issues, as well as, the benefits of using a decentralized stablecoin. With DAI serving as a decentralized alternative to Tether, there may be no need to look further in order to enjoy the best of both worlds. Time will tell us whenever Tether will be a failed experiment or not. Just my thoughts

Tether is not a decentralized cryptocurrency.  He was not and never will be.  The document cited only talks about the decentralized exchange of tether for other values.  We can agree with this, since such an exchange does not really involve a third party.  However, the tether token itself is completely centralized in nature.

The only question is how long before the whole thing collapses anyway, the printing or shall we say creation is out of this world

They could do it, but I won't believe they ever will.
Why bother if everyone uses it already at this point?

That's certainly true, mate. Tether has frozen a substantial number of addresses in the past. I'm sure they won't stop doing it anytime soon. This should make the average person aware that Tether is not really a decentralized stablecoin. The more people become a victim of Tether's schemes, the better it'll be for decentralized stablecoins' adoption in the mainstream world. Centralized stablecoins like Tether and USD Coin bring the traditional banking system to the Blockchain. This goes against what crypto was designed for in the first place. As long as we have decentralized alternatives like DAI and USDJ, nothing should go wrong.

My guess is that Tether will eventually become heavily regulated by mainstream governments. This could lead towards the demise or triumph of USDT in the mainstream world. Everything will depend on how legitimate Bittrex is willing to keep its operations. If it can't comply with regulations, then another centralized stablecoin will take USDT's place on the market. What matters is that crypto/Blockchain tech remains decentralized to become impervious against government intervention. Centralized stablecoins will come and go, but decentralized alternatives will last a lifetime. Just my thoughts

dai for the win

This has already happened multiple times. According to available data, so far in 2020 Tether has frozen a total of 24 addresses. Many of these addresses contained USDT valued in millions of USD. The reason was given as "regulatory pressure". This is just an eye-opener to everyone who claim that Tether is a cryptocurrency. The other stablecoins such as USDC are also doing the same.

Tether cannot be called decentralized, because this token is regulated by the owner, the price is stable and the developer can freeze the token at any time.

That won't happen man, the case this time is different from before when the USD is not supported by gold because the volume of gold cannot exceed the volume of trading in the world. So there is no reason USDT is printed without being supported by USD. USDT will remain supported by USD!!

Exactly. But most people don't think that way. They believe that EVERY stablecoin is decentralized as long as it's powered by Blockchain technology. A true misconception surrounding the crypto/Blockchain space if you ask me. As long as this sentiment continues, people will continue falling for Tether's schemes. At least, we have decentralized alternatives that are able to live on their own. DAI is the most popular decentralized stablecoin, yet it suffers from low liquidity and mainstream adoption (compared to its centralized counterparts like Tether and USD Coin). It's no wonder why Tether it's still at the top among other stablecoins on the market.

The constant issuance of USDT tokens, has allowed Tether to remain among the top 5 cryptocurrencies by market cap. Bittrex continues to pump the stablecoin's market cap in order to maintain its dominance. Believe me, this is bad for the whole crypto/Blockchain industry in the long run. If Bittrex ceases operations or governments take down Tether (USDT), you'd expect a massive downfall in price of major cryptocurrencies on the market. At least, there will be a recovery in price after a while. My guess is that another centralized stablecoin will take Tether's place sometime in the future. As long as we have the choice of decentralized stablecoins, nothing else matters. Just my opinion

Exactly. But most people don't think that way. They believe that EVERY stablecoin is decentralized as long as it's powered by Blockchain technology. A true misconception surrounding the crypto/Blockchain space if you ask me. As long as this sentiment continues, people will continue falling for Tether's schemes. At least, we have decentralized alternatives that are able to live on their own. DAI is the most popular decentralized stablecoin, yet it suffers from low liquidity and mainstream adoption (compared to its centralized counterparts like Tether and USD Coin). It's no wonder why Tether it's still at the top among other stablecoins on the market.

The constant issuance of USDT tokens, has allowed Tether to remain among the top 5 cryptocurrencies by market cap. Bittrex continues to pump the stablecoin's market cap in order to maintain its dominance. Believe me, this is bad for the whole crypto/Blockchain industry in the long run. If Bittrex ceases operations or governments take down Tether (USDT), you'd expect a massive downfall in price of major cryptocurrencies on the market. At least, there will be a recovery in price after a while. My guess is that another centralized stablecoin will take Tether's place sometime in the future. As long as we have the choice of decentralized stablecoins, nothing else matters. Just my opinion

USDT is a full 100% centralized stable coin and that can't be denied, USDT is pegged by 1:1 Dollar and it works very well, don't let the decentralized confuse you if that truly appears in USDT whitepaper, Tether is a centralized company and they can't deny that USDT is true centralized digital USD

Tether is the same dollar, only in digital form, and at the same time, this stablecoin is not owned by the state, but by a commercial structure.  Therefore, this coin is completely centralized, and tether can be classified as a cryptocurrency very conditionally.

That's certainly true, mate. USDT is just "Banking 2.0". Why would people interact with a centralized stablecoin if they can simply use Fiat backed by mainstream banks? Crypto is all about being decentralized and censorship-resistant. Take that away from it, and you'll get nothing more than a glorified banking system. Only a fool will believe that Tether (USDT) is decentralized. Living on a decentralized Blockchain network like Ethereum, doesn't mean the stablecoin is decentralized by design. Everything will depend on the code of the stablecoin itself.

The truth is that developers have implemented a "blacklist" function into Tether's code, allowing the issuer to freeze addresses at will. There's nothing we can do to prevent this, since programmable blockchain networks (or should I say, smart contract platforms) allow anyone to code anything to their heart's content. It's up to the person himself to analyze the stablecoin's source code, in order to determine if it's a viable option for long-term investing. But you and I know that not everyone is tech-savvy enough to understand a stablecoin's underlying code. As long as this is the case, people will keep falling for the trap. At least, we have a decentralized alternative called DAI. It's up to you to decide whenever to abandon USDT for DAI, or not.

Nonetheless, there's no doubt that Tether (USDT) is utterly centralized. Other stablecoins like USDC and TUSD are the same. We need more decentralized alternatives in order to reduce centralized stablecoins' dominance on the market. Otherwise, centralized stablecoins will do more harm than good to the crypto/Blockchain industry in general. It's all about eliminating single points of failure whenever possible. Centralized exchanges, centralized stablecoins, and centralized wallets greatly defeat the purpose of crypto/Blockchain tech. If most people continue to rely on centralized services, crypto will be unable to exploit its full potential. Just my opinion

No, it is control by a central authority and it can be freeze. Yes it can be frozen

Anyhow, i am fine with centralized product at some point
Large scale hack couldn't work because rollback can be perform or scammed token could be freeze
Since it is pegged to $1, if they can assure that it is always 1:1 backed
I am fine to use this so call "stablecoin"

I think it is not considered as DeFi, I see that everyone of us who loves crypto, USDT is not like the DeFi we want. I see that so far USDT serves as a bridge connecting crypto assets with other assets. I think about what you said that we can ignore paper money, to do that requires a very complicated transition from real assets to all crypto assets.

NO is definitely not decentralized I mean those people pump serious amount for really I dont know whats back by Only i know is the most used usd in the market so you are safe for now Crypto is good to go till maybe some government activities start kicking 

Only DAI stablecoins are truly decentralized, whereas USDT is a centralized currency. Because USDT was created by a centralized company,
The development team only wants to attract investors attention by making the issue of USDT is decentralized. Despite the fact they have the
ability to freeze USDT if they wish. Therefore it does not guarantee that USDT holding is safe to do,because we lose control of the USDT we have.

I know that too that means monero can't be called as a decentralized coin when it comes to trade in the centralized exchange site. A stable coin is quite different considering it's both become centralized in or out of exchange site.
The backdoor has created and this means smartcontract is controlling by the team.
I think most of stable coin developers were putting the backdoor in their contract to be able to take the urgent decision when there's a bad case happened like hot wallet of exchange site already hacked.