Topic: Could Tether (USDT) be really called decentralized cryptocurrency? - page 2. (Read 777 times)

This is something that I have thought for a long time and I do not know why they allow it, after all I understand why governments are not trying to go against bitcoin too strongly because if they fail, and they will, then they will look incompetent since they have no actual way to completely destroy it, but when it comes to tether and other centralized coins they can do so with ease and yet they chose not to do it which creates a very interesting dynamic and only generates more questions. Does this means governments are behind those coins or at least someone with heavy ties with them? Because otherwise I fail to see how they can allow that.

USDT is developed by a centralized company using a decentralized blockchain network so in that case, we cannot call USDT decentralized crypto anymore. Most project sugar quote statements in order to suit their narratives. You hardly see a blockchain project that won't mention the word 'Decentralized" today, even some coin such as monero that is decentralized are being traded on centralized platforms

Even the company never claim they are decentralise and never claim USDT is a decentralised tokens. Looking into the name alon tells you all about the tokens. To be sincere not everything in this space need decentralised system and Tether is one of them, USDT has served the space well and is responsible for the growth of the space, assuming it is Decentralise the marketcap would be lower, jus look at the traction DAI is getting and compared it to other stable coins in the space

Which world you are living in, have you heard about the government accumulating gold before printing currency, just in the past few months US minted trillions of dollars and do you really think that they are backed by gold  . Tether is a centralized currency no matter how we sugarcoat it.

Only a fool will believe Tether's USDT coin to be completely decentralized. A better classification for USDT would be distributed. The underlying blockchain network (ETH) is decentralized, but that doesn't mean the stablecoin has to be the same. A smart contract platform provides developers the tools to build a token or application the way they want to. There's nothing stopping a developer from writing code that would allow him/her to gain certain control over the token or application's core functionalities. Tether's USDT stablecoin has underlying code which allows the issuer (in this case the Tether company) to blacklist ETH addresses at will. Once an address is blacklisted, the USDT balance cannot be spent anywhere on the Blockchain. This model is no different than traditional banking. Governments can easily pressure Tether to blacklist users who don't comply with KYC/AML regulations or simply because a person's transactions are suspicious. So much for a so-called "decentralized stablecoin" in the crypto/Blockchain space.

Nonetheless, I wouldn't worry too much about Tether's current situation. There are better options out there on the market. DAI is a competitor of USDT and a better option for the decentralized world. Its decentralized design allows people to be their own bank without fear of getting funds frozen or confiscated. Of course, Tether's USDT stablecoin is much more popular than DAI in the crypto/Blockchain space. Most dApps and exchanges support it (despite being centralized). But the time will come when people will look for decentralized alternatives as Tether's single points of failure are exposed. The more USDT addresses are blacklisted, the better it'll be for DAI's adoption in the mainstream world. Just my thoughts

Are you sure that paper money is not backed by gold anymore now ?
As i know, to create new paper money in my country, it should be backed with gold reserve by the government.
USD Tether is backed by real bank account, that's why the value is stable.

No it is regulated and hence is not decentralized. Let's keep in mind that in order for its price to be stable, the distribution of the coin must be controlled.
We know that most decentralized cryptocurrencies are volatile and that's the reason why stable coins are made. The characteristics of tether is very different.

I am not sure how much decentralized Tether is. A few weeks back, the Kucoin exchange got hacked, and cryptocurrencies including some amount of USDT were stolen. But after a few days, most of the USDT was frozen. Now this may sound like a good thing, as the thieves don't get the profits from their robbery, but it raises serious questions about the decentralization of Tether. If they can freeze wallets like that, then there is a chance that it can happen to anyone.

The network just provide an infrastructure for tether to be able to use its coin but how decentralized or centralized tether actually depend on the governance that has used by the company. Remember about the decentralization will never try to put the backdoor for the company to be able to control the distribution of coins.
Tether was also able doing it to block any suspicious amounts that owned by its users.

Tether's marketcap grow x4 this year alone. Another x3 and Tether would be at the 2nd spot right after bitcoin.

What is more interesting than tether having no funds to back their currency, it is the US closing their eyes and ears to this. Banks don't let the exchanges use their services because they are afraid of the US government, and now the same exchanges can use USD without needing banks for any purpose. On the other hand, the US can close those exchanges or kill tether if they wanted to but for some reason they don't. Which makes it even more interesting.

Tether's claims that its stablecoin is "decentralized" is just another scheme to attract people into it. Deep inside, it's all centralized as the company has the power to freeze or restrict access to your funds at will. It has been shown over time that Tether has "blacklisted" several USDT addresses on the Ethereum blockchain. This greatly defeats the purpose crypto and Blockchain technology was created for. The Tether's stablecoin is nothing more than "Central Banking 2.0".

For anyone's reference, here's a detailed list of all ETH addresses with USDT tokens that were banned by Tether: https://explore.duneanalytics.com/public/dashboards/3zhIaRUCFgmZMKqHG0pguvSvw1aOGL8gxFtZ2ujf. According to the site, there had been a total of 209 banned addresses on the ETH blockchain. This shows us how heavily centralized USDT is. But most people don't care about this, as they prefer convenience above all else. After all, Tether's stablecoin is the #1 Fiat-pegged asset on the crypto market. Despite its inherently-centralized design, the stablecoin enjoys of a large ecosystem of apps and exchanges backing it every step of the way. Ultimately, decentralized stablecoins (like DAI and bitUSD) will fulfill the purpose of crypto/Blockchain technology. They won't be able to gather massive adoption in the mainstream world (as Tether is in the spotlight right now), but they're proven alternatives for those looking into censorship resistance above all else. I wouldn't be surprised if Tether's USDT stablecoin goes down the drain in the future.

Nonetheless, many things can happen from Tether shutting down its operations to a full government crackdown. That's what you get with a centralized stablecoin which is no different than traditional Fiat (USD, EUR, etc.). As long as people continue to patronize centralized projects and exchanges, the crypto/Blockchain industry will be unable to fulfill its true purpose (which is to eliminate the middleman from the system). Time will tell us how long Tether (USDT) will last in the crypto/Blockchain space. Just my opinion

In theory in order to create one million in tether they must have one million dollars ready to enter their vaults, but that is just the theory because as I said before there have been accusations against tether that this is not the case, however it is really sad that this being a market for decentralized cryptocurrencies has tether as the third spot in the market and ripple on the fourth as well when we know it has very strong ties with many banks, it is as if people simply do not understand or care about this and it is a shame because if this continues to be true it may come the day in which one of those coins will take the first spot on this market away from bitcoin.

USDT is a stablecoin that is pegged to dollar, base on current state Usdt is centralize blockchain that blend a centralized governance structure with a decentralized network. but the basic fact is centralize..

That's that worst and can't be a decentralized cryptocurrency because of couples of things around it existence. The company that created this coin are centralized and the process of that brought this coins into the cryptocurrency space is through centralization, so, what has centralization got to do with decentralization?. For them said they are decentralized then they are liars and should not be trusted

When there is a company behind a project, it is never decentralized, it could never be one, this is not only true for stablecoins but it is also true for regular altcoins as well that people do not see.

If there is a team behind a project, it could be a swap, it could be token, it could be defi, ieo, coin whatever it is in its core the fact it is that team makes it centralized. Everyone talks about big coins, like for example tron, that sounds like a big proper huge coin right?

I know for a fact that it is not decentralized, Justin Sun could do whatever he can do take control and do whatever he wants with it, what about XRP? The Ripple company could print 500 million more coins tomorrow if they want to, they have that right, you think that is decentralized? Aside from bitcoin and maybe few others there is no decentralized currency in crypto world.

Absolutely not, the project you mentioned is controlled by a business, and this business definitely hides many reserves and transactions. On the other hand, it is not to pass without reminding that the company that continues the management of this project is also not reliable. For this reason, the answer to the question you asked is clearly no, and it seems unlikely that this project will continue its life independently in the coming years.

I think no. a decentralized cryptocurrency can not have a stable price. It has to be changed due to demand. But still i think usdt is needed as a stablecoin for us. Because it is sometimes hard and slow to exchange crypto to usd.

I think that is because DAI is pegged to USD via mediator for which ETH acts.Thereby the mechanic behind  its price stabilization is  a lot harder than it's sounds for USDT. IMO, if only DAI was backed up directly by dollar fund hold some where on bank accounts then exchanges would implement it more readily.

They don't have full backing and this was proven some time ago. I remember saying them admit it that in reality they have maybe 80% of the funds in circulation backed. So they are really not 100% backed and they hold cash equivalents so it's not all usd. They are lying about being 100% backed on their site to lure customers.

https://cryptopotato.com/it-doesnt-matter-if-tether-usdt-is-fully-backed-by-usd-co-founder-william-quigley-says/

https://www.forbes.com/sites/francescoppola/2019/03/14/tethers-u-s-dollar-peg-is-no-longer-credible/

Tether is a company and they only issue USDT when there is a bond in the bank. Tether is a store of absolute value when 1USD = 1USDT, sometimes their exchange rate difference due to market transactions. Tether is issued on different blockchains, and they are still influenced by the Tether company.