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 329 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%
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%
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.
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%
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%
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!
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.
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
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. 
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.
Do governments support Tether? Is Tether centralized?
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.
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.
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.
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.
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. 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.
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.
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.
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.
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.
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.
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.
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.
Im still using this stable token.
It's more concerning right now after what happened to Luna and it's UST 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
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 
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?
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?
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.
When LUNA and its UST crumbles, the paranoia is spreading and its possible to happen on all stablecoin especially USDT.
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
there is bunch of conspiracy theories out there some people believe it some people dont and offcourse that Tether team always said that they are legit
to be honest and in my opinion what usdt right now have is insanley crazy amount of money 70 billion dollar from where they got thoose and not just stop there there is EUR CNY and dont forget about the XAUT
what i fear is what happen on terra luna ust happen on usdt
but please dont
to be honest and in my opinion what usdt right now have is insanley crazy amount of money 70 billion dollar from where they got thoose and not just stop there there is EUR CNY and dont forget about the XAUT
what i fear is what happen on terra luna ust happen on usdt
but please dont 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,
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.
A little impressed by what you wrote because it's true that I personally also never realized this for the last 10 years where I very often use USDT in terms of storing the amount of assets that already exist and also very often use it when buying on the exchange I want. So for now who knows about the lack of evidence of the biggest stablecoin?Quote
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.
If these speculative forecasts come to fruition it will certainly be catastrophic for those who like to hold and use USDT in everything they need.Although at the moment I still like USDT, but in the future maybe I will switch it to another stablecoin if the evidence you are referring to has not been found.
I am at peace with USDT (Tether ) because they have once faced the law and now things have gotten better for the project to keep functioning, if USDT was fraud it won't be running today, the project is really pegged with dollars that's all I can say, asking for the proof of backing isn't possible, put yourself in their shoe first.
there is bunch of conspiracy theories out there some people believe it some people dont and offcourse that Tether team always said that they are legit
to be honest and in my opinion what usdt right now have is insanley crazy amount of money 70 billion dollar from where they got thoose and not just stop there there is EUR CNY and dont forget about the XAUT
what i fear is what happen on terra luna ust happen on usdt but please dont
to be honest and in my opinion what usdt right now have is insanley crazy amount of money 70 billion dollar from where they got thoose and not just stop there there is EUR CNY and dont forget about the XAUT
what i fear is what happen on terra luna ust happen on usdt
but please dont 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.
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.
USDT is everything crypto is supposed to be not. Tether's basically got all the fiat issues of the dollar it's notionally pegged to, but then with additional dimension of them being allowed to print tether that doesn't even correspond to a dollar. Even more worrying is htf they managed to become unpegged from the dollar and be forced to rely on (mystery) paper. If you've printed ~ $75 billion worth and can manage to locate a backed investment that pays 0.1% on your saved dollars - that's still $75 million a year to run your company and buy everyone a lambo with, each year, forever.
You get the impression that they thought "not good enough" and overlooked their entire purpose.
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 tangible* 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.
From user Yogee
From CNBC about the NYC Lawsuit - Ryan Browne - Feb 21st, 2021 - *Note that their investigation was highly limited in scope.*
Accounting Firm Report Card - Coindesk by: Helene Braun - March 30, 2021
Coindesk Report about Moore Cayman (Auditor) - now known as MHA Cayman - Jan 26th, 2022
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.
From user Yogee
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%
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%
From CNBC about the NYC Lawsuit - Ryan Browne - Feb 21st, 2021 - *Note that their investigation was highly limited in scope.*
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The state’s top law enforcement official had been investigating the firms over allegations that they moved hundreds of millions of dollars to cover up the apparent loss of $850 million of commingled client and corporate funds. Tether and Bitfinex — a popular digital currency exchange — are owned by the same company, Bitfinex.
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New York Attorney General Letitia James’ office says it found that Tether sometimes held no reserves to back its cryptocurrency’s dollar peg. It said that, from mid-2017, the company had no access to banking and misled clients about liquidity issues.
In a 2019 filing, the attorney general’s office said that Bitfinex handed $850 million to a Panama entity called Crypto Capital without disclosing it to investors. Executives at Bitfinex and Tether then allegedly engaged in a series of transactions that opened up Tether’s cash reserves to Bitfinex.
“Bitfinex and Tether recklessly and unlawfully covered-up massive financial losses to keep their scheme going and protect their bottom lines,” James said in a statement Tuesday.
“Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie,” she added.
“These companies obscured the true risk investors faced and were operated by unlicensed and unregulated individuals and entities dealing in the darkest corners of the financial system.”
In a 2019 filing, the attorney general’s office said that Bitfinex handed $850 million to a Panama entity called Crypto Capital without disclosing it to investors. Executives at Bitfinex and Tether then allegedly engaged in a series of transactions that opened up Tether’s cash reserves to Bitfinex.
“Bitfinex and Tether recklessly and unlawfully covered-up massive financial losses to keep their scheme going and protect their bottom lines,” James said in a statement Tuesday.
“Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie,” she added.
“These companies obscured the true risk investors faced and were operated by unlicensed and unregulated individuals and entities dealing in the darkest corners of the financial system.”
Accounting Firm Report Card - Coindesk by: Helene Braun - March 30, 2021
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To be clear, an attestation is not the same thing as an audit. The latter is designed to look for potential risks, while an attestation only evaluates whether the data being examined by the auditor is accurate. However, no stablecoin issuer has been able to secure an audit, including companies regulated by U.S. entities like the New York Department of Financial Services. In other words, the attestation puts Tether on par with stablecoin issuers such as USDC’s Centre, GUSD’s Gemini or PAX’s Paxos, at least when it comes to financial clarity.
Coindesk Report about Moore Cayman (Auditor) - now known as MHA Cayman - Jan 26th, 2022
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FRC is looking at MHA's audits of the financial statements of MRG Finance UK for 2018 and 2019, ahead of a planned shakeup of the nation's audit market, according to the FT. MHA is a subsidiary of Baker Tilly International, the 11th-largest auditor of London-listed companies by market value, according to the FT, quoting Adviser Rankings.
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