What is the real deal on USDT Tether? - page 2.

Jawhead999

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Quote from: Fundamentals Of on May 29, 2021, 11:05:45 PM

Quote from: Jawhead999 on May 29, 2021, 10:27:23 PM

-snip-

But a crashing USDT will definitely has a larger impact to the entire crypto market if ever it gets stopped by the regulators. Shitcoins crash every now and then. Most of the time, they don't even affect the market. We cannot even hear many of them passing away. They just simply perish.

But this is definitely not the case with USDT. USDT, as we all know, is the most traded coin in the whole cryptocurrency market. USDT's 24-hour volume is even way higher than that of Bitcoin's. Bitcoin's volume is not even half of that of USDT's.

But whatever possibilities are with USDT, they are going to be temporary. Although a USDT crash may shake the whole market, it won't cause the market to crash as well.

Yes USDT is very known stablecoin especially for traders, since as you said the USDT's 24-hour volume is the highest rather than other cryptocurrency.

Back in the 5-6 months ago, when XRP still on top 5 AFAIK (it's mean XRP has quite amount holders) there's a FUD of SEC lawsuit against XRP. Many big centralized exchanges has announce to delist XRP (some already delisted) it make XRP got dumped from $0.6 to $0.2 or -66,67% but it doesn't to effect other crypto e.g. (BTC, ETH etc) instead of dump, the other crypto continuously pump.

Sithara007

legendary

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Leading Crypto Sports Betting & Casino Platform

They have already admitted that cash makes up only around 4% of their reserves. The remaining is locked up in various equities, bullion or fiduciary deposits. There is nothing to panic right now. But my question is what will happen, if the stock market crashes? Even if the total value of their backup goes down by 5% or 10%, that will create widespread panic in the market and will result in panic selling. And the users will not be able to see how much their reserves has gone down, since they are not very transparent with these figures.

Fundamentals Of

sr. member

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Quote from: Jawhead999 on May 29, 2021, 10:27:23 PM

Quote from: DaC0nsumeR on May 29, 2021, 09:02:12 PM

could cause ~~crypto~~ USDT markets to crash, etc.

If SEC will do fully audited about USDT and find something suspicious, only USDT token will crash not entire cryptocurrency. Just like other shitcoins crash until -100% but the cryptocurrency market didn't got affect of it.

So, if you worried that's issue will be happen in the future you should convert ASAP your USDT to USDC or DAI since it's more safer.

But a crashing USDT will definitely has a larger impact to the entire crypto market if ever it gets stopped by the regulators. Shitcoins crash every now and then. Most of the time, they don't even affect the market. We cannot even hear many of them passing away. They just simply perish.

But this is definitely not the case with USDT. USDT, as we all know, is the most traded coin in the whole cryptocurrency market. USDT's 24-hour volume is even way higher than that of Bitcoin's. Bitcoin's volume is not even half of that of USDT's.

But whatever possibilities are with USDT, they are going to be temporary. Although a USDT crash may shake the whole market, it won't cause the market to crash as well.

Jawhead999

legendary

Activity: 1820

Merit: 1207

Quote from: DaC0nsumeR on May 29, 2021, 09:02:12 PM

could cause ~~crypto~~ USDT markets to crash, etc.

If SEC will do fully audited about USDT and find something suspicious, only USDT token will crash not entire cryptocurrency. Just like other shitcoins crash until -100% but the cryptocurrency market didn't got affect of it.

So, if you worried that's issue will be happen in the future you should convert ASAP your USDT to USDC or DAI since it's more safer.

Fundamentals Of

sr. member

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Merit: 366

Tether just recently released a breakdown of its reserves. Here is an article from Forbes detailing how Tether's funds are divided:

https://www.forbes.com/sites/nicholasgans/2021/05/13/tether-releases-breakdown-of-its-reserves/?sh=393ea86a1109

It is up to you how you would perceive them based on the breakdown.

Tether is full of controversies over the years but still it remained as the most trusted, most traded, and most utilized stablecoin. But there are now other options. So if you think Tether is risky enough, then you may choose USDC or BUSD.

Twinkledoe

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So have you read an old article way back in 2019 - https://www.newsbtc.com/news/crypto-community-reacts-to-tether-admitting-usdt-not-fully-backed/? They admitted that they were not fully backed by USD assets at that time. And right now, we don't know the absolute truth if they are now 100% fully backed. Being no. 3 is quite a feat. But if you are not comfortable in holding USDT, better opt for BTC or other currencies like ETH or BNB.

DaC0nsumeR

jr. member

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I am increasingly reading highly concerning analyses of Tether, saying that it is has not been audited, could cause crypto markets to crash, etc.

What do we actually know about this situation? Should we be listening to the Cassandras on this one?

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