Topic: usdt tether market cap grows from 4,6 billions to 10,800 billions from March - page 2. (Read 736 times)

usdt is indeed useful and they dont questioned it but people are more concerned if the coin is really backed by the amount that it market cap achieved . i feel yes because money can be printed easily  . usdt is a virtual currency just like btc and other cryptos but why people dont ask the same to btc  and other cryptos where cryptos aside from tether are mostly not backed by anything but still they fully trust it .

for now , cryptos are now getting stable compare to before so the demand for stable coins are also gettting stable and not that high

Traders use USDT to fix their profit. And despite the fact that in addition to usdt, there are more than ten different stable coins on the market, it is the most popular, because it is represented on all exchanges. There is another option to trade in Fiat currencies, but these pairs have very little liquidity.

if people get out of btc - why price ob btc began grow from March 2020, just after drop of price?

Don't you think Tether has already passed so many audit systems? With 15.13 billion USD tether already gained 3rd place from the whole crypto market. As OP's post in two months tether gained 5 billion USD in two months. After this incredible supply, I still believe tether over 95 percent. We have to trust a stable coin where we have a total of 6-7 options but all are out of top altcoins.

I think tether will doing fine because they already being long at the market for now and im sure they can backed up the fiat money with what token they created and by what  they announce the audit are already has being done and there will be no issues for the print anymore.

It's clearly stated by tether if it's not all of the tokens have backed 1:1 with the fiat money. I think that you should read the announcement that has already created by tether in the past and from that news and we can expect tether didn't have the enough fiat money to back up all of the funds.

I think that you should visit tether's site to get the more report about the issuance asset on the market.
Audit has already done before.

I think the USDT market cap grows drastically, which is normal, especially when the price of Bitcoin drops as it is today.
Because stablecoins are very safe to avoid the volatile price of Bitcoin, so many investors convert their Bitcoin and altcoins
into USDT to save their capital from decreasing. Many investors also buy USDT to save their money so that when the crypto
price comes in the right time to buy Bitcoin and altcoins, they can immediately convert USDT they have to buy Bitcoin and
some potential top altcoins in cheap prices.

Does it mean that the existence of stable coin is growing much better as guessed? So far, many against the stable coin because it is like no cryptocurrency. But along this way. stable coin is chosen to be the one as the basic trading pair in most exchanges.  Moroever about USDT Tether, this is the most trusted even many do not agree with the existence of this.

Another big deal about this is the fact that they said they now have 1 to 1 ratio once again, I am not sure how much we should believe them considering they are a company based on Bahamas because they want to be away from the law of USA and that means they must be doing something wrong for sure, but they were honest enough to say that it dropped under 75% for a while and they didn't had to do that, they told the truth during that period and now they said they are back to 1 to 1 ratio once more.

Now if we were to believe everything they say, we went from having about 4 billion backing on a 5 billion thing to suddenly over 10 billion backed for over 10 billion which is a lot of money in the crypto world right now and means a lot to the market itself during trading.

well tether has mentioned about audit in their website but man that's honestly kinda unbelievable that tether market cap could grow that significantly and faster.
the fact that tether actually partner with some banks out there make it sounds reliable but public still need a lot more transparency than just that.
If tether could prove their grow as legit I think it will be better for their business and reputation.

They have been avoiding audit all this while. According some articles I read, tether is not fully backed by the usd reserve on Bank, just like 70%.
Thr real question is, what will happen when the Federal reserve want full auditing of USDT?
Will that affect the price?
I sometimes brainstorm how individuals or institutions mint 300 million of Usdt sometimes, thats risky.

I am concerned about this issue, whether the banks have enough money to guarantee the amount that tether has printed in the past. Increasing the capitalization for tether from $ 10.6 billion to $ 15 billion in 4 months is a snap. Need an audit for the tether.

at binance -
1)
from September 1st, to September 17th
was sold about 60 000 more btc than bought btc

60 000 btc now cost about 600 mln usd

at the same time - from September 1st, to September 17th
was issued about 1, 700 mln of usdt


i dont check difference of (sold - bought) btc  at other exchanges,


2) from September 5th, to September 17th
was sold about 30 000 more btc than bought btc
and at this period price of btc go up

so at this period people sold more than buy, but price go up (i think by limit orders - keeping price while market orders move price up)

I guess they have adding more USDT coin into the circulation, this is because many defi projects growing and using stable coins such USDT.
Whether USDT really backed by fiat or no, i think many people in crypto already trust USDT and using it, and also many defi projects using it as well.
If you feel doubt in USDT, there are other stable coins such DAI, etc. available to be used.

This is what I don't get with increase in the marketcap of Tether, people believed that it was used to pumped BTC and the number has increased to $14 billion and the price of Bitcoin has been relatively steady but most of the Altcoins has made significant gains this year, something to ponder about

Bingo.


You can't stay away from tether when tether is behind every crypto currency there is.

Rather stay away from Tether, who knows how many real dollars they have in banks? Maybe they are creating USDT tokens that are note backed by dollars from the air, just like banks and FED do it. Then it would mean a huge problem for all USDT holders.

Fair enough I get your point about people wanting to exit crypto and into dollars( tether in this case since it's relatively easier) at a time of volatility due the pandemic.



Just think about exactly it is that you have said here people have sold their crypto into tether but there wasn't enough tether to go around. ( the natural thing to happen  in this case would have been for the peg to be broken I.e 1 tether would be worth more than 1 dollar)

 However what you have said implies that more tether has been consequently printed to meet their demand. However instead of being bought by real dollars this has been bought and therefore backed using BTC or some other crypto.

Since no new dollars have actually gone into the system this would then again play into the argument that tether is not backed by dollars but collatrialized by bitcoin or other cryptocurrencies which would be truly alarming.

This of course assumes that the exchanges on which BTC has been traded for tether have not sent the corresponding real dollars to the tether corporation. ( And I really don't think even the big exchanges combined have 6-8 billion  in liquid dollars lying around  to send to tether )

The reason why it grew soooo much was the pandemic. During the early days of pandemic people wanted to get out of crypto and they still didn't wanted to take all their cash out to their bank accounts, that wasn't something ideal for them, so what they ended up doing was move their money from crypto to usdt which made it a bit more difficult because there wasn't enough usdt, there was only 4.6 billion and honestly crypto market is so much bigger, they were a bit late but not too late and increased it to 11 billion dollars, which people just bought it all because most still wanted out.

Obviously this is not sustainable and usdt will eventually go down and people will sell their usdt for usd and the number will go down one day but until that moment this really works for people.

Just because USDT is critical to the market does not mean that it wont/ cant collapse. Furthermore if they are engaged in some sort of fraud/money laundering than i don't see how any regulator could take too kindly to that simply because its collapse would lead to financial losses for investors. I don't think the US would warrant tether as being critical to our economy to warrant them providing any sort of assistance in preventing tether from collapsing.

Furthermore One most not let our own prejudices/desires/ goals/interests impact our critical thinking. The fact is that Tether is a centralized entity and there will always be risks associated with that.

It is also pretty apparent that they have been less than transparent in the past only making their decelerations when they had absolutely no other choice or when that information had already leaked.

For instance the Link between tether and Bitfinex had always been denied and it was only after it leaked in the Panama Papers that they acknowledged that relationship.

Source : https://www.icij.org/investigations/paradise-papers/paradise-papers-connection-sparks-massive-bitcoin-lawsuit/

They also maintained that they had fully backed reserves on a dollar to dollar basis only recently admitting that this was not the case.

https://www.bloomberg.com/news/articles/2019-04-30/tether-says-stablecoin-is-only-backed-74-by-cash-securities

https://www.coindesk.com/tether-says-its-stablecoin-is-fully-backed-again
.
They say they are fully backed again but make of it what you will.


Furthermore the recent increase in total issuance from roughly 4 billion to 12 billion today at a time of wide spread economic slowdown does seem suspicious to say the least.

Again i am not debating whether tether is backed or not just that we need to acknowledge that there are some discrepancies and issues with it. And given the ongoing lawsuit by the SEC it just seems wise to maybe use another stable coin until the dust settles.