Tether's Stablecoin USDT 'Has a Peg Stability Problem', Claims Analyst - page 3.

blockman

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I don't like Tether even before but at some point of my life, I have to use it and that had helped me a lot with my transactions and holdings as well. Some may misunderstood that this is pertaining to each user, no. Because if you don't have an account on their website, you don't have to. Please read the whole details on Tether's website.

Quote from: https://tether.to/en/fees/

Verification fee
150 USD in Tether Tokens
This amount is non-refundable but can be part of your Redemption. The verification fee is intended to ensure that only those who are serious about establishing an account apply. The fee also helps offset a portion of the incurred costs from the execution of a robust verification process. To comply with applicable laws Tether maintains the sole discretion to approve or not approve accounts. By submitting a verification request you agree that the 150 USD₮ deposit is non-refundable. Read carefully here before proceeding.

* This represents the current minimum amount required for a fiat withdrawal or deposit.

Note: Please exercise extreme care when depositing tokens. In cases where token recovery is needed due to a deposit mistake, Tether may, in certain limited cases and in its sole discretion, attempt to assist you to recover your token(s) and will charge you fees as determined here.

Tether does not offer wallet functionality for any digital tokens. Withdrawal requests for digital tokens held by Tether are evaluated per request and can take several days to process.

o48o

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Quote from: larry_vw_1955 on September 06, 2023, 01:00:18 AM

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Another catch is that users have to pay a non-refundable amount of $150 for “verification,” which, according to Tether, “is intended to ensure that only those who are serious about establishing an account apply.”
-cut-

I am assuming that this has been the case whole time and i just never noticed it. I assume that most people are trading it against something else in exchanges anyway, so it doesn't really concern majority of people, and whom it concerns are so rich that they wouldn't care about 150 dollars

But just in princible this is not good. In fact how is this even legal? Imagine banks doing this? Withdrawing physical from cash from ATM would cost $150 and people would riot and lose their minds. So how is tether getting away with this crap?

Tytanowy Janusz

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Quote from: larry_vw_1955 on September 06, 2023, 01:00:18 AM

I see no reason why USDT keeps its redemption fee intact unless it is actually intended to reduce redemptions.

Another catch is that users have to pay a non-refundable amount of $150 for “verification,” which, according to Tether, “is intended to ensure that only those who are serious about establishing an account apply.”

USDT price is stable thanks to big marketmakers and arbitrage traders. You can sell your USDT on almost every single crypto exchange for other stable coin or $$. There is no reason for tether to have to serve small retail investors, because all it does is increase the company's operating costs and contribute to the formation of holes in the balance sheets. For me it is completely understandable that the company, when it does not have to, avoids unnecessary costs, which would be hiring thousands of employees to handle the kyc of each investor with 100USDT in the wallet free of charge and to handle tickets created on the basis of "I sent to the wrong wallet, now what?"

the whole, both the article from the link and the entire OP, I consider nothing more than creating FUD and confusing insolvency / liquidity problems with cutting unnecessary costs. At the moment, tether FUD has been with us for years and yet, no large investor has ever had a problem with payout.

Apocollapse

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It's ridiculous if USDT asking for redemption fee or pay $150 for verification.

With Binance asking everyone to convert their BUSD to other stable coin, this give USDT price increase since current 24 hours BUSD trading volume, there are around 15% convert to USDT, so this give USDT price increase.

If USDT price pegged back to $1, no one will care about de-peg, centralization, not fully backed, and any other problems.

larry_vw_1955

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https://decrypt.co/154580/tethers-stablecoin-usdt-has-a-peg-stability-problem-claims-analyst

In response to these findings, Carey suggested that Tether should consider removing its redemption fee and minimum requirements.

"The redemption fee is a USDT-specific problem. USDC does not have such a fee; stablecoin issuers currently make most of their money from the yield they earn on the USD deposits that they hold," Carey told Decrypt. "Given the U.S.'s high rate environment, I see no reason why USDT keeps its redemption fee intact unless it is actually intended to reduce redemptions. If that's the case, it's short-sighted because it makes USDT's peg worse."

and then this:

Another catch is that users have to pay a non-refundable amount of $150 for “verification,” which, according to Tether, “is intended to ensure that only those who are serious about establishing an account apply.”

good luck with using tether everyone. you're going to need it if this thing depegs. Shocked

Topic: Tether's Stablecoin USDT 'Has a Peg Stability Problem', Claims Analyst - page 3. (Read 441 times)