Topic: Stable coins the new way of scamming people? - page 2. (Read 559 times)

I think people tend to underestimate how much stablecoins are worth and how profitable they are.

Earlier this year, tether destroyed $500 million dollars worth of their own supply. I can't speak for their motivation but the impression I got is they did it in an attempt to make tether a more scarce commodity and elevate its price back up to $1.00.

Imagine your market cap being so large that you can literally destroy $500 million dollars worth of your own supply and have everything be peachy cool--nothing to see here folks. Business as usual.

IMO that's the reason so many are excited to enter the stablecoin market and appropriate market share for themselves. Even if they succeed in amassing only a small percentage of the stablecoin market, it can still amount to large sums of money with potentially little effort on their part.

The volumes on Bitfinex and the fact that those volumes are counted in when people want to get the average price of Bitcoin means that there is some trust in them.
And I am not convinced USDT is so widely used because of "trust". It's so widely used because so many exchanges accept it (and we know that there were many shitcoins accepted by the exchanges in the history).
And people go by convenience too. You don't trust your government, still you use fiat.

With the new "expansion" of the stablecoins, I expect that either USDT handles transparently all the problems (real and not) people talk about or get replaced by other, more trusted stable coins.
With proper 3rd party audit the chance for the company behind the stablecoin to scam people should decrease, no matter it's USDT or a newcomer.

do not Suva in untested ico projects in any case...you will only guess the project will break out or it is a Scam at all. it is better to participate in projects that have proven to be the best side and there is a good story about it.

Stable coins seem to be useful for trading. You are saying that in Netherlands it's easy to buy or sell cryptos for fiat, but it's not like that everywhere. Poeple avoid fiat and yet don't want to lose their money due to volatility. That is why stable coins are becoming so popular. You are right that the companies can scam people. If we take Tether, for example, they say that each coin is backed up by a dollar and that anyone can make sure that it is true. However, I couldn't find out how exactly people can check it. I guess it's really holding on trust. I don't trust stable coins, but it's like with non-governmental banks. Banks sometimes go bankrupt and people lose their money. Kind of a scam, if you ask me. I think those stable coin companies are like that. Things can go well, but there are always risks.

Stablecoins was never a sustainable idea to begin with. People who started stablecoins didn't do it for the good of people, their first starting point was to sell those stable coins and get the money to their bank account and show people that they do have that money at hand.

What you are missing out is that even if they are true to their word and they have lets say 2 billion dollars worth of USDT in the market and 2 billion dollars worth of USD in their bank account to back that, that's 2 billion dollars they are free to profit from.

As long as they do not risk the money in some investment scheme, they are set for life. Just to think how much it would worth from savings account is insane. Even putting that money into a savings account would yield 40+ million dollars. That's money they can call a profit.

Stabilizing coins is not a lie. The emergence of stable currency is very good for the cryptocurrency market. If the cryptocurrency does not have a stable currency, the price of bitcoin should now be less than $1,000. Stabilizing coins are the most important coins between traditional and cryptocurrencies.

They serve a small but important purpose. USDT does exactly what people want it to do. It enjoys so much global adaption within this ecosystem, that it's probably the only token that's actually used the way it should be used.

People don't trust Bitfinex either, yet continue to use USDT to such degree, that it generates twice as much volume as there are tokens in circulation. If that isn't actual utility then I don't know what is.

USDT is subject to a constant dose of shit and fud, yet it still manages to remain on top of the industry. I'm not saying it's a fantastic addition to this industry, find it shady to a certain degree, but it works and that's what matters.

It's a good question my friend

some stable coins appeared and they claimed that behind the one coin they were backed up by fiat in the real world and I haven't seen the legality of that statement, I see this could be a new mode of market trends for price monopolies because users will be more interested in hearing backups The US dollar is reversed even though I'm not sure it's true

Stable coins are a new way of manipulating prices. The frequent use of these currencies will make the market enter into a big bubble and may lead to the collapse of cryptos as a whole.
If these currencies are not supported/backed by US dollars or fixed assets based on their value, they are based on promises and therefore no difference between them and the current financial systems. "At least currencies are supported by well-known countries and entities."
Being a good means of arbitrage does not negate the fact that it is a virus that will cause markets to collapse.

Well why they make their own stable coins cause i believe it would be use by people cause its stable and they will get reveneu from the number of transactions that people do. I do also think its good for market and also good for cryptocurrency development, i think bitcoin would lose a bit of influence in market price, which i think not really good cause when bitcoin crash all coin are crashing and i think with stable coins it will reduce the effect and make market a better place for investment

This has been discussed for a long time now. Stablecoins are actually great for hedging and arbitrage trading, but then the system of it getting its value by being pegged into something is quite sketchy, and most people don't even think that the first stablecoin, USDT, is actually backed by real dollars on Tether reserves. Once the company crumbles, those who are left with the said stablecoins are in for a spin, and I don't think that it will be a great scenery to watch even from afar knowing that regulators would surely get their heads and tails on to cryptocurrencies again.

Well the idea of having stable coin is an amazing idea by itself and it was good when we had only USDT out there, and when some people doubt USDT it was ok to have a secondary option but what I don't get is why we are having more and more stable coins every day and I definitely think this will not end up good, I think 2 or maximum 3 stable coins is more than enough for the whole market.

Is not new.....USDT is doing it for years...now there are just NEW scammers in the game...

Take care with stable coins, once the market bounces, they will suffer a lot...

A true stable coin would require auditing from multiple agencies and preferably from different countries. It's a necessary endeavour though as it would massively increase volume. I think Tether is far from perfect, but we'd be in a much worse place without it.

Like the others have said, stable coins are not decentralized crypto-currencies. If they are not decentralized, the question remains how they can be called crypto-currencies? In fact, they shouldn't use that name at all. If you hold stablecoins, it's more like you hold shares of some company. The difference is that in this case, the company is not transparent at all, like you said, you even don't know the address, phone number, people in charge, etc. Moreover, there are no third party audits, you have no idea what they are doing behind the scenes. Is their stable coin really covered by real value or not? You don't know. Holding stable coins is like gambling, you never know if or when they are going to fail.

I think that the idea of ​​stable coins is not bad and very promising. But as long as there is no single financial regulator in the world, this idea will be just an idea.

The stable coins are a great tool for speculators and for arbitrage. And.. that's all. They are not proper coins (they are usually tokens), they are centralized, their value is pegged to a certain value by their issuers, instead of leaving the market decide.
This pegging part comes with certain rules the issuer has to meet (and certify) - usually fiat deposits - which even the most known stable coins didn't properly certify.

So it all comes to the trust in the issuer, in the same way you have to trust your country's central bank for fiat.
I personally don't trust them - neither my central bank, neither the stable coins issuers.

By itself, the idea of creating stable coins is very good. Stable ones simplify work with cryptocurrency and are very convenient in practice. Of course, everything can be used not only for the benefit, but also to the detriment of participants in the cryptocurrency market. However, in advance, it is already possible to treat stable coins as possible fraud, I think, not worth it. So far, a lot of things in cryptocurrency is not perfect. Hopefully, the vulnerabilities and shortcomings of stable coins will disappear over time. Cryptocurrency is constantly evolving and improving.

In recent years, the number of ico projects have been on the rise, where huge amounts of money have been collected together. This trend seems to be all over.
Stable coins are now a new trend. My feeling that this is going to be a new scam trend. I have no good thoughts at all.
Scammer who will print coins while they do not have that much money in fiat money or nothing at all. Many questions are open to me.

1. Who controls these companies if everything is fair?
2. Do these companies also have a kind of corporate council where coin holers are allowed to check the finances if everything is financially correct?
3. How should these companies make money, nobody works for free?
4. Why do they use stable coins when we are not needed? In the Netherlands we have a kind of coinsbase. Litebit. A company officially registered with the chamber of commerce. There you can sell crypto for euros but also for credits that you can buy back when you want.
5. Why do not these stable coins have a normal contact address?
6. Where is their office?
7. Why do not those stable coins have a phone number that you can call for questions?
8. Why are their registration data hidden from their domain name?
9. Why do not stable coins need ico to start something while almost all other coins want millions to start the simplest things?
10. Why do exchanges use their own name for their stable coins?
11. Why do not exchanges use a kind of system that you can sell for credits?
12. Technically speaking with normal currencies you have a winner and losers. In crypto the winners are this moment the stable coins. If bitcoin will rise enormously again, these will be the biggest losers. How can stable coins survive bitcoin rise again?

How I think about stable coins is not positive. I think we'll read more about that when suddenly companies have run off with all the money and everyone is left with something worthless.

what do you think?