How safe is Tether? - page 3. | Bitcointalksearch.org

squatter

legendary

Activity: 1666

Merit: 1196

STOP SNITCHIN'

Quote from: BossBee on September 25, 2017, 12:11:15 AM

How safe is it to hold your money in tether? It's based in Hong Kong and some of the terms and conditions are cringey. If something were to happen to it do you think polo and bittrex would honor your money some how?

No way. It's not safe at all. It's tied to Bitfinex -- they are owned by the same company. So Tether is subject to the same third party risk as Bitfinex. Indeed the terms are scary. Technically, your USDT is not redeemable for anything. In practice, you can't redeem it for real money either because Bitfinex/Tether does not have any fiat banking capabilities right now. I would not be comfortable holding USDT for long at all.

And no, Poloniex/Bittrex/Kraken/etc definitely won't honor your USD value if Tether goes down in flames. That's why they either don't have USD deposits/withdrawals, or they keep USDT as its own market (like Kraken).

cryptocrusher

full member

Activity: 420

Merit: 136

There is a risk with Tether like any other crypto. It is not backed by anything substantial and is only implicitly tied to USD, if something major happens then it would definitely drop below 1:1. Short term it can be worthwhile to trade in tether but long term I would advise against holding large amounts of tether.

sa3loo

member

Activity: 66

Merit: 10

All Cryptocurrencys are at risk including tether
Nothing is guaranteed in Crypto world.

coingrow

full member

Activity: 364

Merit: 102

If you look at the charts of Tether then you will realize that it has not always mainted the level of 1 tether equal to 1 USD. So that sums it up preety nicely. Stay away from it. I would not hedge all my money into this.

biletskiy

full member

Activity: 434

Merit: 100

It is almost same like hold money in Poloniex or Bittrex.
1-2 month is ok, but not for long holding.
Conversely - bitcoin, etherium is good for long holding.

HardFireMiner

full member

Activity: 872

Merit: 120

The process of Tether maintaining it's 1$ value from what I know is following:

User buys 1$ worth of tether -> Tether Network (Company, Devs) "prints" 1USDT
User sells his 1USDT for Fiat -> Tether Network destroys the printed USDT.

So, as long as the developers are doing what they say they do, Tether is safe.
But if something goes wrong, I don't know what can happen, expect the worst.

hase0278

hero member

Activity: 882

Merit: 544

Quote from: BossBee on September 25, 2017, 12:11:15 AM

How safe is it to hold your money in tether? It's based in Hong Kong and some of the terms and conditions are cringey. If something were to happen to it do you think polo and bittrex would honor your money some how?

Like there it still have some risk holding your money on tether. If I were you I would hold my money on coins that have been on a low price for a period of time like waves. If something were to happen to it, polo and bittrex won't return your money be cause it is not their fault, it's tether's but if it is still sellable when that something happens sell your tether.

Cnut237

legendary

Activity: 1904

Merit: 1277

It is a risk like everything. But when the whole market is falling, do you risk using tether? I would say yes, but it's personal opinion. And it also depends on the amounts you're putting in. I wouldn't put all of my cryptocoin holdings into tether, but I would put some in.

nsasuiteb

full member

Activity: 406

Merit: 100

BAILOUT

I don't think it is safe, in my opinion even it is not safe, there is just a company (startup) behind usdt, it should not be seen as digital usd. It may be better to hold bitcoin instead of usdt in the long term.

Vaflia

full member

Activity: 280

Merit: 101

As far as I know, USDT is not secured by nothing other than the Bank accounts of developers, who by the way has not published data about what resources they have.

sweerty1

sr. member

Activity: 453

Merit: 251

Presale Starting May 1st

It is surely not very safe. If their company goes bankrupt basically you would lose your money quickly. Don't trust it as fiat money or bitcoin. It might be tied to USD but it doesn't mean it will stay always. I saw its prive lower than 1 usd around 2 or 3 months ago.

Herbert2020

legendary

Activity: 1946

Merit: 1137

Quote from: BossBee on September 25, 2017, 12:11:15 AM

How safe is it to hold your money in tether? It's based in Hong Kong and some of the terms and conditions are cringey. If something were to happen to it do you think polo and bittrex would honor your money some how?

tether is mostly tied to bitfinex since the same company is behind both of them. polo and bittrex and others added tether since the trading volume increased a while back.

if that company (i think it was a bank) goes down or starts having any trouble the price of USDT will tank hard. we saw last year when bitfinex was hacked USDT fell down below $1 easily. so it is easy to lose money.
as for safety, they are clearly not guaranteeing anything! it is like most altcoins 1 USDT = 1 USDT. there is nothing saying 1 USDT = 1 USD and they certainly don't guarantee exchanging it for fiat!

in my opinion it is a good thing to use for short term like for holding your funds in fiat but not to rely on for longer. it is risky.

Kat_Slash

member

Activity: 101

Merit: 10

At end of the day Tether is just a crypto. Do I need to say something more?

I dont trust Tether or any other asset coin.

Mallyx

hero member

Activity: 1138

Merit: 574

Quote from: BossBee on September 25, 2017, 12:11:15 AM

How safe is it to hold your money in tether? It's based in Hong Kong and some of the terms and conditions are cringey. If something were to happen to it do you think polo and bittrex would honor your money some how?

If any kind of issue happen with the mechanics of this token, you'll take the damages.
I'd to say it's not safe to hold your money on Tether.

Katja1234

newbie

Activity: 25

Merit: 0

I am also wondering about Tether. I read a few articels about it and did not get a solid anwser about his saftey.

BossBee

hero member

Activity: 682

Merit: 540

How safe is it to hold your money in tether? It's based in Hong Kong and some of the terms and conditions are cringey. If something were to happen to it do you think polo and bittrex would honor your money some how?

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