Topic: Impact of USDT in the Crypto Market? - page 2. (Read 288 times)

There lot of uncertainties around stable coins these days with many central banks now proposing to ban stable coins 'coz according to them only they have a right to print money lol.

even if USDT becomes unusable there are tons of other stable coins out there to choose from.

The popularity of USDT signifies the importance of stable coin rather than importance of itself. Most of the users are still using it as there are no alternatives in most of the places and are no other stable coin that are so widely accepted. The another big advantage of USDT over other stable coins are it's cross platform nature and their easier interchange. That's a unique feature as more and more people are moving towards dapps and dex.

It's true. USDT acts like a safe zone that allows traders to store their money without worrying too much about the volatility or unpredictable fluctuations of the market. As a trader and investor, I don't see any problem with USDT since it has been proving to be a very efficient coin to us. I use USDT all the time when I need a place to keep my capital as stablest as possible.

Somehow the real issue is USDT itself because it has yet to prove that there is really a real USD behind every USDT.

The role of stablecoins such as USDT is good. I am using a stable coin whenever I need to because it is the only stable coin in exchange platforms. When you are doubting on which specific direction Bitcoin or any altcoin will take next, you better be choosing the safer option which is USDT.

How do stable coin's price get pumped? It should remain at $1 or close to it regardless of the market fluctuations to be called stable right?

It manged to climb to number 3 by market cap because the company behind it minted more during COVID-19. If I'm not mistaken, they added 280 million tether from March to April 2020. We can't really call that as an "unprecedented rise".

I don't know if it's a huge blow. I would rather call it a huge cleansing of the cryptocurrency space. It is a fact that the tether team were caught lying when they said 1 USDT is backed by 1 USD. They eventually revealed that it's backed by USD and some other assets. The market doesn't need shady behavior like that and I think a more reputable stable coin like DAI deserves more support.

I guess the supply of USDT is growing substantially and the exchanges was continuously high, so this made a serious surge in the market. When BTC price goes down immediately many of them change it to USDT as a comfort zone.

Also a big drop in BTC and other cryptocurrencies fueled by corona virus USDT have pumped now, also it surpassed XRP as well. There are possiblities if the crypto currencies recover.

Tether has been in the radar from regulators already, and allegedly they are doing a lot of fraudulent practice from behind, they don't even let auditors do their job, so its just a matter of time that US government will go after them. But I don't think it will be a huge blow to the market because as I have said, there's no secret that they are doing some pump. Probably it will have a short term effect, just like any negative news, but in the long run, much better without them.

In fact, Tether just keeps on printing like brrrrrrrrrrrrrrr and that's why it's being disliked.
This is absolutely true.
The 2017 all-time high for bitcoin, it's not just about ICOs but also Tether have made contributions with that. But I think even if it goes to $0, bitcoin and it's associate altcoins will recover eventually. That's the normal attitude of crypto.

In a long-term perspective, there's nothing much to consider because I know it will recover even if the value of USDT due to government breakdown turns to zero, it's just time to change to another stable coin. Maybe the USDC would provide better regulations and transparency when it comes to evaluation if there are actual backed currencies in their vault.

The impact would be devastating at the start, and since almost every reliable crypto is being traded with USDT, the markets would be affected. There could be a crash and possibly recover when the time comes.

As of today, Tether's USDT stablecoin is the world's third-largest cryptocurrency by market cap. It experienced an unprecedented rise since the COVID-19 outbreak took the world by storm. Some say that USDT is being massively pumped on the market by the Tether company itself. With shady operations such as lack of transparency, I wouldn't be surprised if USDT goes down the drain sometime in the future.

The real issue is not USDT itself, but rather its impact on the crypto market in the long term. For now, USDT has a positive impact over the crypto market due to the extreme hype surrounding stablecoins and "De-Fi". But if USDT is being artificially pumped, the effects won't last for long. Imagine if USDT goes all the way to $0 in the future due to a large government crackdown. It would turn out to be completely disastrous for the entire crypto market, since it's directly linked to stablecoins. At least, the downfall in crypto's prices will be in the short term. With USDT censoring people from getting access to their funds, anything could happen in the future.

What impact will USDT have in the crypto market over the long term? Will it be a positive or negative one? What if governments find out that Tether is a scam? Being the world's third-largest cryptocurrency in market cap, a full government crackdown will turn out to be a huge blow to the entire crypto/Blockchain space. Thoughts?