Transparency of USDT | Bitcointalksearch.org

Rikafip

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Quote from: 20kevin20 on May 10, 2020, 09:58:38 AM

That's half-transparency and half-transparency is equal to none. I either tell you the truth or lie - telling you half a truth and half a possibly made-up fairytale story only leaves you confused and my words interpretable & questionable.

Yep. It is worth mentioning that sometimes between February 19th 2019 and March 4th 2019 Tether changed their explanation regarding being backed by USD. So, at least until February 19th (last available archive ) this was their explanation

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Every tether is always backed 1-to-1, by traditional currency held in our reserves. So 1 USD₮ is always equivalent to 1 USD.

Archive

And then on March 4th, it changed to this

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Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”). Every tether is also 1-to-1 pegged to the dollar, so 1 USD₮ is always valued by Tether at 1 USD.

Archive

So yeah, I do not trust them.

sunshinelegit

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Quote from: 20kevin20 on May 09, 2020, 04:37:17 AM

I personally do not trust USDT or any other USD pair. I would use them for very short timeframes on exchanges but I wouldn't have enough trust to use them for long term holding (say if I expect a big BTC downfall).

Most large volume markets are on USDT pairs (which could be due to the fact that it's much easier to trade BTC for USD prices than BTC for ETH) and some of them are obviously wash trading. I just don't trust it due to it being centralized.

What's makes me worry that they just can "print" millions coins easily

LbtalkL

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If you know it, last bullrun year 2017 was rumored to be manipulated by USDT (Tether). This coin is really suspicious but with all those accusations and rumors there is no concrete proof that they did it. If they have I guess USDT will not be around anymore. Even with that, USDT is the most well-known and used stablecoin across different exchanges so far sitting in Top 4 in terms of marketcap. I am still using USDT on trading but I am not holding it.

hitsnorth

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it's old story of USDT transparency... i don't believe in it since NY case about it

joniboini

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Quote from: Febo on May 10, 2020, 08:35:03 AM

No company is transparent as Bitcoin and Tether.

I don't think Bitcoin is a company though. Maybe organization or community, but definitely not something like Tether. The point is, with blockchain, you can always see any transactions that's happened here and there, but as others said, the backing of the supply is what's being questioned. If we apply your logic of transaction transparency, then any crypto is transparent as long as they have blockchain explorer running and showing txs that's happening on the network. Pretty sure this is not the level of transparency that we demand from services that can print/mint 'money' from their pocket anytime they wanted to.

20kevin20

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Quote from: Febo on May 10, 2020, 08:35:03 AM

No company is transparent as Bitcoin and Tether. They never were and will never be. Companies can do a lot and trade with a lot of people you will never know they did. You will only know when they trade with you. When you go to McDonald and trade with McDonald you will know you gave them $10. No one else beside you and them will know that. You can buy Big Mac with a dirty USD you got on an illegal bet with your neighbour on you betting that Bitcoin will be under $10000 at halving block. But government can check McDonald transactions and see that you spend there $10 you never should have. So they will knock on your door and ask where you got those $10.

And yet, people question the backing of Tether's supply and nobody gives a precise answer. That's half-transparency and half-transparency is equal to none. I either tell you the truth or lie - telling you half a truth and half a possibly made-up fairytale story only leaves you confused and my words interpretable & questionable.

gentlemand

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Quote from: Febo on May 09, 2020, 12:35:39 PM

Tether is fully transparent.

Erm, the bit people are most concerned about is the real dollars pouring in and out which are 100% non transparent. I am no way reassured by watching a bunch of fun tokens bouncing around whipped up by one guy on his laptop.

I'm not a believer in the 'Tether scam' but I am amazed at the willingness people have to trust it. Tether's master move was to offload the risk onto exchanges. Exchanges now can't afford to let it fail. A few publicly declared they'd back it when it was wobbling.

The most clear sign that it is what it claims to be is the consistency of the dollar peg. Most pegs fail eventually. Tether's hasn't. All the same no one should trust it any further than they can defecate it.

Febo

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Quote from: 20kevin20 on May 09, 2020, 04:03:18 PM

Quote from: Febo on May 09, 2020, 12:35:39 PM

Tether is fully transparent. We can see all coins being generated and burned so as we can see all transactions where those coins went. Current fiat system is not transparent, but is private. So we cant see where all USD goes. If they are on Tether account or not. Only sender and receiver knows. So the one that send USD to Tether and Tether themselves. Government of course have some system to check company accounts. So they also know it.

Full transparency that transparent ledger cryptocurrencies bring is a big novelty in fiance.

Tether as a coin is fully transparent, but what's the point in having a transparent currency if it's centralized? The coin is transparent, but the company behind it isn't. Hence a pretty bad combination.

There are lots of large corporations out there laundering money and wash trading. It's supposed that governments "know" or "would find out", but they don't - or they do, after they transfer millions and billions in their tax-haven bank accounts. If they're doing shady stuff, they'd obviously steer away from the government.

So yeah, although the coin itself may be transparent, I'd personally not tell someone that Tether is too. Could create the wrong, interpretable image of it in someone's mind and I just want to avoid that.

No company is transparent as Bitcoin and Tether. They never were and will never be. Companies can do a lot and trade with a lot of people you will never know they did. You will only know when they trade with you. When you go to McDonald and trade with McDonald you will know you gave them $10. No one else beside you and them will know that. You can buy Big Mac with a dirty USD you got on an illegal bet with your neighbour on you betting that Bitcoin will be under $10000 at halving block. But government can check McDonald transactions and see that you spend there $10 you never should have. So they will knock on your door and ask where you got those $10.

joniboini

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Quote from: Febo on May 09, 2020, 12:35:39 PM

Tether is fully transparent. We can see all coins being generated and burned so as we can see all transactions where those coins went. Current fiat system is not transparent, but is private. So we cant see where all USD goes. If they are on Tether account or not. Only sender and receiver knows. So the one that send USD to Tether and Tether themselves. Government of course have some system to check company accounts. So they also know it.

They have a long history of moving around bank accounts and publishing weird and hard to verify account statements. Burning and minting tokens should not be counted as a way to measure transparency, as it's nearly impossible for 3rd-party to actually verify the process.

At this point, any stable coins are more or less shady because there is no way to verify the balance of the company itself. Unless they can provide some kind of transparency like what DAI does (showing the amount of ETH or any other tokens as collateral compared to the number of DAI released or something like that), we should assume they're shady and can exit scam anytime.

HeRetiK

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Quote from: 20kevin20 on May 09, 2020, 04:03:18 PM

Tether as a coin is fully transparent, but what's the point in having a transparent currency if it's centralized? The coin is transparent, but the company behind it isn't. Hence a pretty bad combination.

Exactly. Even worse, Tether as a coin may be fully transparent, but Tether -- as a coin -- is also completely worthless without assets backing it up. And unfortunately those assets are not transparent in any meaningful (ie. verifiable) way.

20kevin20

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Quote from: Febo on May 09, 2020, 12:35:39 PM

Tether is fully transparent. We can see all coins being generated and burned so as we can see all transactions where those coins went. Current fiat system is not transparent, but is private. So we cant see where all USD goes. If they are on Tether account or not. Only sender and receiver knows. So the one that send USD to Tether and Tether themselves. Government of course have some system to check company accounts. So they also know it.

Full transparency that transparent ledger cryptocurrencies bring is a big novelty in fiance.

Tether as a coin is fully transparent, but what's the point in having a transparent currency if it's centralized? The coin is transparent, but the company behind it isn't. Hence a pretty bad combination.

There are lots of large corporations out there laundering money and wash trading. It's supposed that governments "know" or "would find out", but they don't - or they do, after they transfer millions and billions in their tax-haven bank accounts. If they're doing shady stuff, they'd obviously steer away from the government.

So yeah, although the coin itself may be transparent, I'd personally not tell someone that Tether is too. Could create the wrong, interpretable image of it in someone's mind and I just want to avoid that.

Febo

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Quote from: Bitlover10 on May 08, 2020, 10:03:22 PM

I am new in crypto and what I observed from my few days trading that their are big manipulation on Bitcoin price. I saw few big transactions on USDT. They minted a millions of usdt and also they burn it too. Is their any transparency that we can find out that how much they minted it that was backed by real USD. I mean its looks like they minted it for manipulate the price and then burn. I mean why even they minted it if they burn it. Is their any audit about it?

Tether is fully transparent. We can see all coins being generated and burned so as we can see all transactions where those coins went. Current fiat system is not transparent, but is private. So we cant see where all USD goes. If they are on Tether account or not. Only sender and receiver knows. So the one that send USD to Tether and Tether themselves. Government of course have some system to check company accounts. So they also know it.

Full transparency that transparent ledger cryptocurrencies bring is a big novelty in fiance.

Bitlover10

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Now again I just saw that they minted 10, 0000000 usdt just few seconds ago.. Here Is transaction details

100,000,000 USDT ($100,222,390) minted from Unknown to Tether Treasury
Blockchain: Tron
18 seconds ago
Mcap: 8.5 B
24h change: 2.76%

https://tronscan.org/#/transaction/2f4a1928fab2fd3d46e7863f5415e7f5f2bbf7fa8e5e3e428e4662b3e3091854

This is a big amount and their is a big question on it if they really backed above amount..?

20kevin20

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I personally do not trust USDT or any other USD pair. I would use them for very short timeframes on exchanges but I wouldn't have enough trust to use them for long term holding (say if I expect a big BTC downfall).

Most large volume markets are on USDT pairs (which could be due to the fact that it's much easier to trade BTC for USD prices than BTC for ETH) and some of them are obviously wash trading. I just don't trust it due to it being centralized.

HeRetiK

legendary

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Their last audit was in June 2018 so go figure:
https://tether.to/wp-content/uploads/2018/06/FSS1JUN18-Account-Snapshot-Statement-final-15JUN18.pdf

In all fairness they do self-report their current balance sheet here:
https://wallet.tether.to/transparency

How reliable and trustworthy either of these are is anyone's guess though. Unlike crypto cold storage there's no way to verify the validity of their claims. If Tether goes under or turns out to not hold assets as promised you're simply shit out of luck.

pooya87

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Quote from: Bitlover10 on May 08, 2020, 10:03:22 PM

I am new in crypto and what I observed from my few days trading that their are big manipulation on Bitcoin price.

there is obviously manipulation in bitcoin market like there is in any other major markets in the world but it has nothing to do with Tether.

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I saw few big transactions on USDT.

what is that have to do with manipulation?

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They minted a millions of usdt and also they burn it too.

most of it goes into altcoin market as the main usage of tether is for altcoin trading. in fact out of top 6-7 bitcoin exchanges only one has tether whereas all the altcoin exchanges have tether.

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Is their any transparency that we can find out that how much they minted it that was backed by real USD.

there is transparency about the total supply of it but nothing about if it is backed by USD or not.

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I mean its looks like they minted it for manipulate the price and then burn.

if they bought bitcoin with tether (manipulation that you speak of) then those coins enter circulation, they can no longer be burnt.

Little Mouse

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I am not sure but if I can remember correctly, once I read that tokens are minted when the price of stablecoin is failed to maintain $1 and goes above $1, by increasing supply, it is possible to maintain $1 when the price is highwr. On the other hand, if the price is lower than $1, it means some of supply needs to burn so that the price get stable once again.

The Cryptovator

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You may read on wikipedia to know more details about USDT. As far as I know tether isn't backed anymore against USD although formally claimed about backed and they are printing as they like. But I am not sure how you confirm about burn token. The movement of huge amount of USDT is for manipulate btc price. You can see wikipedia mention it's as a controversial crypto currency, so I think there is no opportunity to audit them what is the reality. Most of pump dump happen on Bitfinex about bitcoin price and more interesting is Tether Limited have unclear relation with Bitfinex. I don't know if I were able to explain you but you can imagine USDT is like a algorithm and it doesn't have real value lately due to lack of transparency.

Bitlover10

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Hello everyone

I am new in crypto and what I observed from my few days trading that their are big manipulation on Bitcoin price. I saw few big transactions on USDT. They minted a millions of usdt and also they burn it too. Is their any transparency that we can find out that how much they minted it that was backed by real USD. I mean its looks like they minted it for manipulate the price and then burn. I mean why even they minted it if they burn it. Is their any audit about it?

Can anyone explain it? And what you thinking about usdt?

Topic: Transparency of USDT (Read 306 times)