All this has been known about Tether for a long time, but guys, bitcoin is worth 30k now just because of this stabelcoin. All the recent bull markets started only after Tether turned on the printing press. Bitcoin would not have risen to 69k and would not be worth 30k now if not for Tether. If something like UST happens to Tether, we can forget about cryptocurrencies for a long time. And by the way the question arises - if Tether is a scam and everybody knows about it, why they are not closed by SEC or other authorities yet?
Those are without a doubt nice observations, it is true the price of bitcoin started to skyrocketed when tether became bigger as well, however is the growth of tether the cause of bitcoin growth or is the bitcoin growth the cause of the increase in the tether in circulation? This is something difficult to answer, and about your question regarding why tether still exists, this is something hat has confused people for a long time, however it would not be rare there are people behind tether which are protecting it from the SEC, but taking into account governments want to create their own stable coins I do not know for how long this can continue.
Topic: Tether (USDT) - Backed by Air and Words (Read 282 times)
All this has been known about Tether for a long time, but guys, bitcoin is worth 30k now just because of this stabelcoin. All the recent bull markets started only after Tether turned on the printing press. Bitcoin would not have risen to 69k and would not be worth 30k now if not for Tether. If something like UST happens to Tether, we can forget about cryptocurrencies for a long time. And by the way the question arises - if Tether is a scam and everybody knows about it, why they are not closed by SEC or other authorities yet?
Those are without a doubt nice observations, it is true the price of bitcoin started to skyrocketed when tether became bigger as well, however is the growth of tether the cause of bitcoin growth or is the bitcoin growth the cause of the increase in the tether in circulation? This is something difficult to answer, and about your question regarding why tether still exists, this is something hat has confused people for a long time, however it would not be rare there are people behind tether which are protecting it from the SEC, but taking into account governments want to create their own stable coins I do not know for how long this can continue.
All this has been known about Tether for a long time, but guys, bitcoin is worth 30k now just because of this stabelcoin. All the recent bull markets started only after Tether turned on the printing press. Bitcoin would not have risen to 69k and would not be worth 30k now if not for Tether. If something like UST happens to Tether, we can forget about cryptocurrencies for a long time. And by the way the question arises - if Tether is a scam and everybody knows about it, why they are not closed by SEC or other authorities yet?
This isn't like Titanic because that was a tangible real thing that you could see, and USDT is just air, it is absolutely nothing but a "word" from the creators that it will always be backed. At the end of the day, if USDT ever fails (which it will eventually) it will be a horrible dark period in the crypto world and that is the only thing that I feel upset about. If we are going to live through that horrible period, then why would we need to wait for it, why not take your money out of USDT right now small by small and request the money they promise that they are keeping. Its like banks, if everyone withdrew their funds from banks, banks couldn't pay everyone, and yet they still run like they are business and that bothers me, USDT is doing the exact same thing.
It was just an analogy of how something which we believe to be impossible to fall can indeed do so under the right circumstances, however I agree, the fall of USDT will happen at some point in the future, after all even if it could somehow avoid the collapse due to the doubts people have about maintaining the one to one ratio to the dollar, we also know governments are interested in creating their own CBDCc, so how long it would take until they set their sights on centralized stable coins and try to destroy them? 
This isn't like Titanic because that was a tangible real thing that you could see, and USDT is just air, it is absolutely nothing but a "word" from the creators that it will always be backed. At the end of the day, if USDT ever fails (which it will eventually) it will be a horrible dark period in the crypto world and that is the only thing that I feel upset about. If we are going to live through that horrible period, then why would we need to wait for it, why not take your money out of USDT right now small by small and request the money they promise that they are keeping. Its like banks, if everyone withdrew their funds from banks, banks couldn't pay everyone, and yet they still run like they are business and that bothers me, USDT is doing the exact same thing.
the problem here is that there are many users that are trusting this stablecoin. i, for one, has also qualms on their assets. when they admitted few years ago that at some point they were not fully backed, it stuck in my mind and up until now, i have the feeling that they are not telling the absolute truth to the public. yes, they have auditors and all. but how can you tell that they are also telling the truth? and how can we access those audits? yes, there is no tangible proof about their backing, maybe not available to public consumption.
so if you are a holder of this stablecoin, better think now. cash out while you can. before the doomsday comes. your choice!
This isn't like Titanic because that was a tangible real thing that you could see, and USDT is just air, it is absolutely nothing but a "word" from the creators that it will always be backed. At the end of the day, if USDT ever fails (which it will eventually) it will be a horrible dark period in the crypto world and that is the only thing that I feel upset about. If we are going to live through that horrible period, then why would we need to wait for it, why not take your money out of USDT right now small by small and request the money they promise that they are keeping. Its like banks, if everyone withdrew their funds from banks, banks couldn't pay everyone, and yet they still run like they are business and that bothers me, USDT is doing the exact same thing.
The true state of obliviousness in crypto is still baffling. Despite billions of dollars and repeated offenses by countless wolves over the past 10 years in all of crypto, no one bats an eyelash at the lack of any tangible* evidence from the largest stablecoin.
Some people thought that USDT gain its merits by simply being the largest stable coin, therefore many of them didn't look deeper into what it is all about, they presume it is fine since many people are using it. By relying on the masses' usage of USDT and/or a piece of attestation for the transparency, they assume it is all good. What can we expect from a platform that relies on trust while the masses blindly give the trust?The true state of obliviousness in crypto is still baffling. Despite billions of dollars and repeated offenses by countless wolves over the past 10 years in all of crypto, no one bats an eyelash at the lack of any tangible* evidence from the largest stablecoin.
Some people thought that USDT gain its merits by simply being the largest stable coin, therefore many of them didn't look deeper into what it is all about, they presume it is fine since many people are using it. By relying on the masses' usage of USDT and/or a piece of attestation for the transparency, they assume it is all good. What can we expect from a platform that relies on trust while the masses blindly give the trust?This is why they are so dangerous, and they may not be good people, but they are super smart, how many people could offer NOTHING and still make billions?
USDT, as of 2022.3.31, claims that they have $4.1B in actual cash reserve. however, according to CMC data, its capitalisation has been down by $11B from 2022.5.11 to when this reply is submitted, which is far beyond its cash solvency.
The true state of obliviousness in crypto is still baffling. Despite billions of dollars and repeated offenses by countless wolves over the past 10 years in all of crypto, no one bats an eyelash at the lack of any tangible* evidence from the largest stablecoin.
Some people thought that USDT gain its merits by simply being the largest stable coin, therefore many of them didn't look deeper into what it is all about, they presume it is fine since many people are using it. By relying on the masses' usage of USDT and/or a piece of attestation for the transparency, they assume it is all good. What can we expect from a platform that relies on trust while the masses blindly give the trust?
USDT will become the biggest scam in crypto history, bigger than XRP by 5-fold. The day of reckoning will arrive soon enough. Maybe a few more years before this speculative prophecy comes to fruition.
This is why i were leaving USDT for BUSD. I don't know why people are still using this non transparent stable token. Even UST that was being transparent can be destroyed easilly but in my opinion when people realized about the truth and massive sell will be happening like UST even USDT was not a algorithmic stable token. Last week i have seen the price of USDT was also dropping. This stable token was not viable anymore to be used for the daily interaction with the market. The worst thing may come when public will know about the truth of USDT reserve
The problem there is the fact that you are still giving money to the team so that they would keep it level, when they couldn't, it dropped and we learned that the algo was a miscalculation. Right now the similar thing could be said about Tether as well because that is based on a company and everyone trust the company to go on forever but the reality is that they could screw up as well.
Do governments support Tether? Is Tether centralized?
No and yes, the government does not support any stable coin, and in fact we are seeing that many governments are interested in releasing their own stable coin in the form of CBDCs, this means that sooner or later stable coins will come under attack by the governments as they do not want to have other coins fighting for the same market as their own coin, and tether is centralized which makes it incredibly easy to destroy, unlike bitcoin which is a decentralized currency. Basically its just the word "trust me" and it worked for the company to have $73,207,418,561 market cap (3rd in CMC) without having anyone auditing. Bitfinex are still up and running which nobody even know where they are actually located. The last time AFAIK was that they are based in British Island and which they guarantee its the safest place.
When LUNA and its UST crumbles, the paranoia is spreading and its possible to happen on all stablecoin especially USDT.
Bahamas is also the place where they are registered for investment purposes as well, Bahamas.. We all know that they are trying to keep all of their money out of everyone's reach so that they wouldn't be screwed and that's a good defence when suggested in crypto sense. To go out there and say "we are not registered in the USA because if they freeze our assets, that will be your money they freeze" but that also means our money is out of our reach as well.When LUNA and its UST crumbles, the paranoia is spreading and its possible to happen on all stablecoin especially USDT.
I never trusted them, and seeing how they have so much money, it is clear that not everyone thinks the same. Whenever their topic is opened, everyone says they are not to be trusted, but they keep growing bigger.
Well, when there are several articles that are quite complete, it shows that coins like this are not necessarily safe, all possibilities that exist in cryptocurrency can happen so you have to stay alert when putting the money you use in USDT it can collapse, until now the USDT is still used to facilitate the purchase of Bitcoin and hopefully usdt will not be a double-edged sword for Bitcoin.
Usdt is not safe and if Usdt crashed it will put very bad impact on crypto and I think this will be biggest crash for crypto market. People use Stable coins for staking. USDD, USDT, and USDC are all backed by an underlying business of reinvesting profits from transaction back to stakers. Only USDC is safe, Rest all are ponzi..Not worth the risk to lose your whole capital just to get few extra percentage
USDT will become the biggest scam in crypto history, bigger than XRP by 5-fold. The day of reckoning will arrive soon enough. Maybe a few more years before this speculative prophecy comes to fruition.
This is why i were leaving USDT for BUSD. I don't know why people are still using this non transparent stable token. Even UST that was being transparent can be destroyed easilly but in my opinion when people realized about the truth and massive sell will be happening like UST even USDT was not a algorithmic stable token. Last week i have seen the price of USDT was also dropping. This stable token was not viable anymore to be used for the daily interaction with the market. The worst thing may come when public will know about the truth of USDT reserve
Last week's drop in USDT's price was due to the UST crash effect affecting USDT. The death of UST has been warned by many on twitter but very few people care about it, UST is an algorithmically stable coin unlike USDT is a stablecoin backed by USD. Therefore, they should not be compared with each other. I see USDT and BUSD are the same they don't have too much difference, if you find a better USDC or DAI than BUSD.
if tether collapse whole crypto market will collapse as well
well, it seems that people are starting to question how things are going about stable other coins after the UST crash. however, USDT has always had its questions in the past. however, there are some issues like USDT is only in supply 70% of real money, and so on. however, people sometimes forget that. to be honest, currently the assets I have use more BUSD than USDT. it's because there are enough issues like this. however, USDT is one of the most popular crypto assets at the moment, I don't expect it to collapse, and can refute all the negative speculation that exists.
Your concern is genuine and we all have the same feeling about stability of these stable coins. Honestly speaking nobody is sure whether these stable coins will not collapse like ust in case crypto market goes through another Teraa Luna like crash. The USDT has huge market cap of 70 Billion dollars if it is not backed by real dollars then it is certainly vulnerable and we should diversify our funds in different stable coins like BUSD & USDC,
Yea right, right now yes i consider other stablecoin but most exchange pair is using USDT
i mean if we can take a look usdt minted in 2022 alone usdt has been minted 6billion
Not yet a scam but let's see what will be happening with this stable token in the future.
Here's their reserve breakdown as reported by Coindesk,
- Cash & Cash Equivalents & Short-term deposits & Commercial paper: 75.85%
- Secured Loans: 12.55%
- Corporate Bonds, Funds & Precious metals: 9.96%
- Other investments: 1.64%
It's not 100% legit. There must be some confirmations about the reserved funds to make sure if it was reliable. I think that you forgot to mention about the trust despite all of things that used to backed the stable token above but in this case the trust was the main thing that used by tether to make people think if it was fully backed. There's no reliable information about how many tokens fully backed and reserved funds.
Here's their reserve breakdown as reported by Coindesk,
- Cash & Cash Equivalents & Short-term deposits & Commercial paper: 75.85%
- Secured Loans: 12.55%
- Corporate Bonds, Funds & Precious metals: 9.96%
- Other investments: 1.64%
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