Topic: Stable coins the new way of scamming people? (Read 548 times)

Well I guess supporting stable coins is good if you are earn a business. It is quite risky to join if you have money that is not intended to HODL or trade for profit in a bull market. So I guess business owners will benefit more from stable coins.

There are those tokens that let the market decides on it's value but most of it is manipulated by it's issuers. How do they do it is inside job i think. They manipulate the value to make it appealing to future investors.

I am not a fun of centralized stable coins, rather the decentralized ones like DAI. I like the idea when the coin stability is achieved by natural methods, without backing it with fiat, and some of the stable coins have interesting solutions for it.

https://news.bitcoin.com/pr-lightning-fast-stablecoin-usdx-launches-token-sale/

This stablecoin must be a scam.100% sure!

You get 35% bonus if you buy.
That's means 35% of this coins is not backed in usd

Scammers are also savvy people so they know how all these works, you may not even know you are scammed already. Stable coins are very helpful when you trade with BTC particularly but it can also be as dangerous just as what happened to USDT. There are more that had been created these days like TUSD, GUSD and there's even Carbon.

like you said, in 2018 was full of scam ico and make crypto market more worse like now, hope in 2019 there is a regulations for doing an ico and can filter the real ico among the fake one.

Stable coins are not a scam coins or intending to scam other people. This is just a cryptocurrency also like the other coins and tokens. But its value is most likely to be stable. It is like a fiat but in cryptocurrency. And it is backed by banks for it to support its price rate.

as far as I know this is a very good idea and there is nothing fraudulent about it

Or they did that because somebody sold some tether back to them and they had no buyers.

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I think inflation can be avoided with an algorithmic trading stablecoin. What do you think?

I don’t really know how they are benefiting from doing that, but there are few who can do something just to benefit the community and not themselves, so it’s quite possible that these people are among the few that are doing just that. Let’s be making use of it till the time comes, and we will know if there for real or just scammers. This is not the first time I’m seeing scam online, that’s why anyone should be careful with how they invest their money.

What is also strange is that the money is backed up to the dollar. To my knowledge, there are no stable coins out the USA. What I assume is that the money is not stored at a US bank. There was almost a stable from America. But I read yesterday that they give everyone the money back (133mil) Because it was not possible to trade with the laws and regulations.

Stable coins must use the currency that is equal to the currency of the location where they have their bank account.

account in jappan, then stable coin in YEN
account in usa, then stable coin in USD
account in europe, then stable coin in EUR.

I think that exchanges should set requirements for stable coins.
That regulation can also be exchanged without that manupilative government and sec being involved.

Exchanges simply have to put the heads together and make appointments together. Those who do not participate do not care about the trader. Those exchanges are the scam exchanges.

If exchanges agree not to place a stablecoin on the exchange earlier if they are officially registered as a company. You already avoid a lot of trouble as someone runs away with 1 billion dollars. You where thinking that stable coin was in Switzerland, it turns out to be a dirty scammer from Russia again. They are just free man and will never appear in court. But a officially registered stable coin as a company we can bring him  to the court

It is very worrying to see that the said stable coins are now moving in prices which is why people are finding it out to trust them now since you cannot actually use it as a store of value and expect to have the same value in years to come so yes they can actually be used as the new way to scam people by getting them to trust that the price would never change and then it changes

Those coins are proliferating because those are the only ones that are getting profits right now when the whole market is going down, but I agree that stable coins have a huge chance of eventually becoming scams and making their investors losing all their money but that is the risk they have taken and if that happens then they will have to accept the responsibility for their lack of caution.

How you are saying that more number of stablecoins, will benefit the cryptocurrency market. I guess there will be no need of more stablecoins as representing one fiat currency, we do not need multiple choices. But, we need to agree, there are many attempts are happening to steal people's money in the name of stablecoins because they are simply printing money out of nothing. In that sense it is another round of scam in crypto space. We should spread awareness on choosing a well regulated stable coin.

There are a lot of advantages, we may get by having stablecoins, one good example here must be transferring fiats across exchanges for the need of arbitrage trading. But for this reasons alone we should not allow multiple stablecoin which may definitely will lead to scam attempts.

Overall, we just need a stable coin but it should be properly audited and must have proper reserve for the circulating coins.

Stabilizing coins will not be a new round of scams. Stable currency market competition is fierce. Investors usually only believe in coins that have already been approved, so it is difficult to obtain new stable coins unless they are supported by the government. A stable currency will not be a new scam, and the emergence of a large number of stable currencies will benefit the cryptocurrency market.

1      CoinBene           BTC/USDT   $273.509.478   $1,01   
2   Binance Binance   BTC/USDT   $119.089.873   $1,01   
3   HitBTC HitBTC   BTC/USDT   $117.392.085   $0,978261
        
  Stable coin stable   If this is a stable coin  

If it is a stable coin, then it must have the same value on every exchange?

If I spend $ 1 in a store, that dollar is worth $ 1 in every store.
And $ 1 is also just $ 1 10 years later
Or if I buy something for $ 100 in a store, does not that same customer have to give $ 105 for the same product?

Then it seems that there is no stable coin in crypto at all. But an imaginary stable coin between the ears.

Doesn't the market decide the moment they are listed with an exchange?

the small group of people called the government were supposed to regulate the crypto sector so that everything would be much clearer and more transparent. if all banks in the world allowed people to use their debit or credit cards to buy bitcoin at exchanges, then we would not need stablecoins. But unfortunately we have no options. so the stablecoins is what we have at that moment and we have to settle for this


it seems they have this


A few weeks ago, I asked myself the same question.


in my country I can not buy crypto in all exchange, there are few options that I have, so the stablecoins are welcome to my case


because most of the crypto world is not regulated, so many of them do not have physical office because that would require them to have license, without clear regulations as they would have license? it would be very difficult


It is like I explained, the crypto world lacks regulation

As I see inside the cryptocurrency market that I don't see any stable coins, but when it does happen then maybe that is the time to make it a real currency.

Depends on the company, some are so shady you don't even know where the company is and an audti is the last thing they are going to do

Fees when you buy their "stable" coin or when you change it back to fiat.


with the chamber of commerce. There you can sell crypto for euros but also for credits that you can buy back when you want.
Faster movement of coins other than fiat.
You can sell eth on binance get usdt go to whatever buy bitcoin move to y...so on in a matter of minutes



In most cases when there is no info is because they don't want to leave traces behind.


Lambos are not free or cheap

Advertising and a proof of "trust".


No idea what you mean.



Stable coins are not winners or losers.
Stable coins will always have the same value or are intended to do so.
Their only enemy is inflation, not cryptos.


Or they did that because somebody sold some tether back to them and they had no buyers.

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?