Tether (USDT) - Backed by Air and Words - page 2.

TimeTeller

hero member

Activity: 2744

Merit: 588

Quote from: Yogee on May 24, 2022, 06:58:47 PM

There was a report last year about Tether's reserves but the problem was it's conducted by an audit firm called Cayman. Tether opened their books to them as part of their compliance but you cannot really rely on reports released by another shady company can you? Why did they not seek the expertise of top audit companies like Ernst and Young or the PwC?

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%

Up until today, I also have doubts about their true backing and their actual assets.
I guess, we won't know the absolute truth coming from them as they can cover up with the help of other third party companies.
So for me, it is better to hold your coin in BTC rather than in USDT. Just remember the 2019 admittance that they are not purely backed by USD assets.

Yogee

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Activity: 1554

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There was a report last year about Tether's reserves but the problem was it's conducted by an audit firm called Cayman. Tether opened their books to them as part of their compliance but you cannot really rely on reports released by another shady company can you? Why did they not seek the expertise of top audit companies like Ernst and Young or the PwC?

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%

prosperoustop

jr. member

Activity: 658

Merit: 1

I read that USDT was checked and it real stable coin, also now you can check that billions was withdrawed from USDT and nothing changed!

Xal0lex

staff

Activity: 2436

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There are a lot of things in the crypto industry tied to USDT and I do not think that it is profitable for someone to end it all and turn this stablecoin into a scam with a sad end, because the consequences of this will be very cruel. It's no secret that USDT is not fully backed by the dollar, but only 15%-20%, if I'm not mistaken, the rest is backed by securities and various derivative instruments. I agree that everything is not so smooth with the collateral and most likely there is a huge amount of unsecured tokens released to the market. In addition, USDT has had constant problems with auditing. There is also a possibility that USDC will take the lead. Already now investors start pouring liquidity into this stablecoin, and who knows, maybe in 3-4 years there will be a new leader in the stablecoin category.

Bitstar_coin

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Activity: 2408

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I think usdd was launched at the right time. With the latest occurrence has made investors to have a rethink now. It is better to use the stablecoins which have a strong backing than those stablecoins that are not been able to provide strong backing stablecoin

Coyster

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Quote from: tk808 on May 23, 2022, 10:22:53 PM

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.

That would prolly happen somewhere along the line, but you can be sure that many users hardly worry about stuffs such as their security, true decentralization, etc, until they become victims to such, it is what it is. USDT is centralized, that denotes that absolutely anything is possible, especially for users who have decided to hold it for the long term, decisions can be taken at any time by companies that run this projects, i am talking decisions that wouldn't be in your favor, your funds can also be frozen, etc, it is a no for me to hold USDT, but of course users are absolutely free to make up their own mind on what they want to do, and of course, the consequences remains theirs to take/bear.

ololajulo

sr. member

Activity: 2240

Merit: 270

SOL.BIOKRIPT.COM

a lot of these posts donot look like they understand the OP and his concern. When I understand stable coin, I realize the size of fraud that is going on there. The last law suit was settled out of court and US government seem to be quiet because they are also getting paid. In the last 2 years a large some of billions was added to a coin,this coin does not get mined and just last one week when people are getting curious they remove $10 billion. The space does not need the free fund from America to pump this space if you understand how the stable coins work.

dvj33

newbie

Activity: 20

Merit: 0

Do governments support Tether? Is Tether centralized?

btc_angela

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Activity: 2660

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Quote from: tk808 on May 23, 2022, 10:22:53 PM

Ask yourself this, where's the proof of any backing? Where are the journalists questioning USDT's holdings? 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 evidence from the largest stablecoin.

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.

I think this has been what others have been saying against Tether: they run on fractional reserves.

Remember that New York attorney general has been investigating Bitfinex and Tether as there are concerns about them that they don't have cash reserves, and so a coverup. So we will see, although this case has been settled as far as I know, and as what we witnessed recently, even these so called stable coins can collapse anytime.

MidNite36

member

Activity: 208

Merit: 10

I want to correct many comments on here, even if USDT was backed by real assets there is never going to be any proof like people are hoping for, such things need to be kept in secret, I know this might sound somehow but you will only understand if you are part of USDT team.

jrrsparkles

sr. member

Activity: 2436

Merit: 272

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Ad you said there is no actual evidence for their claim of assets which backs all the tokens they are printing but they will start having issues if government comes with more regulations and starts to audit the cryptocurrency projects. I too expect USDT will become on of the biggest regret of cryptocurrency holders, but we don't know when it will happen so never hold your stable coins for too long just use it for very short term trading purpose.

Silberman

legendary

Activity: 2534

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Quote from: tk808 on May 23, 2022, 10:22:53 PM

Ask yourself this, where's the proof of any backing? Where are the journalists questioning USDT's holdings? 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 evidence from the largest stablecoin.

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.

Without a doubt you are right, at some point USDT will collapse as we know it is not truly backed one to one with dollars, however taking into account what happened with luna and ust I think there are not many people that will want to ask questions about tether either, after all if that happened and tether collapsed tomorrow it is difficult to imagine how low the price of bitcoin could fall, even if bitcoin is not directly affiliated with it the fall of tether will without a doubt affect bitcoin.

Jackl87

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Activity: 1722

Merit: 269

Quote from: tk808 on May 23, 2022, 10:22:53 PM

Ask yourself this, where's the proof of any backing? Where are the journalists questioning USDT's holdings? 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 evidence from the largest stablecoin.
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.

I am well aware of all the controversies that are surrounding USDT for a few years now. As far as i know this all started back in 2019 or so, when the company behind USDT changed it's wording regarding the backing of all the USDT that are minted. Before it was always stated that they have enough USD to cover every USDT minted 1 to 1 but then they changed it to "we have enough reserves to cover every USDT minted" but the big problem is no one can really check what kind of reserves that are and if those reserves even exist.
If we would see the same thing happen to USDT then to UST a few weeks ago then the impact on the crypto market would be extremely devastating in my opinion and the current bear market caused by the Terra collapse will look like nothing in comparison to that.

inanilujimi

sr. member

Activity: 1876

Merit: 259

I can't imagine if usdt ends up like ust, which is my question why all exchanges support this stable coin??
I hope that there will be no more disasters in the future like the one experienced by ust. I hope your speculation is wrong and the disaster never happened.

markko7

newbie

Activity: 13

Merit: 0

Tether made good stress test during LUNA attack. Take a look at trading volume in that day on tether. It was 185 BILIONS! 3x higher then usual day trade! It went down to 98 cents for a while but attackers wasn`t able to crash it.

RussianEnglishTranslation

jr. member

Activity: 840

Merit: 6

I don't trust Tether at all but people wont stop using it until it disappears because it has so much market penetration. Most exchanges use USDT trading pairs instead of USDC, which is regulated and backed. Personally, I don't understand why people even bother with stablecoins when you could be staking cryptos like Celo, CNDL, and NEAR. That way you make money even in a down market.

JeffBrad12

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I remember when USDT has been facing so many problem with regulators and auditors but it can still pass it. It has become a way for people to keep their value unlike UST which has been facing a difficult situation and it's dead instantly. USDT may not so transparent and we didn't know so well the real reserved funds to backed its USDT but im sure it has not enough dollars to back whole of tokens. I do agree with what you said above but calling USDT as a scam will not make people realized about that.

Im still using this stable token. Grin

JangoUnchained

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Activity: 185

Merit: 14

It's more concerning right now after what happened to Luna and it's UST Grin

but USDT is much more better, they have passed all the rights to keep functioning as a stable coin past year's ago, I like the fact that USDT team are well known and have once tackle with the Law, it's just another example of why old projects are better than new one

livingfree

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It is actually concerning with these stable coins and you can't remove your worry with the other ones even if they've been proven to have a real backing just like BUSD, USDC and GUSD.

I still have no whole idea about their legitimacy and auditing if they've been on the line with those critics but the worry about USDT is known. If there's worrying about these stable coins, the centralized ones to be specific.

I'll just choose the decentralized ones, so aside from DAI, what are the other decentralized stable coins you think are firm and strong?

bittraffic

hero member

Activity: 3038

Merit: 617

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.

Topic: Tether (USDT) - Backed by Air and Words - page 2. (Read 314 times)