USDT

D1NK4Life

What about all the USDC purchased with USDT? Are they also backed by short term treasuries?

CointestAdmin

#Bitcoin Con-Arguments Below is an argument written by bkcrypt0 which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > # Bitcoin is failing its original mission, and institutional interest is going to make things worse. > > **Background** > > Satoshi Nakamoto was a financial revolutionary out to counter the fiat money presses that destroy a currency's value with inflation (looking at you Turkey and the U.S.) The method—create a currency with a fixed supply, mined liked gold to make it scarce, and digitally transferable anywhere in the world between any parties. > > **Lack of Stability** > > Bitcoin can't be used as a global currency to replace fiat and eliminate politicized money printing because it has to hold its value steady over time. > > Why? > > People work for dollars, euros, yen, or yuan because there is relative stability in their paychecks from week to week. Their food, rent/mortgage, clothing, energy costs are also relatively stable (inflation is the cost for using that particular currency, but it beats a 50% drop in value over the course of a few months, and most inflation around the world isn't as bad as Turkey or Venezuela.) > > Imagine being paid a flat 1BTC / year for a particular job. But you live in the U.S. and the value of that BTC just dropped over the course of the year by 50%. Your lease is fixed over 12 months. Your food costs are the same or maybe even higher. Not only do you still get hit with local inflation, your buying power just dropped by half. > > This is why over $155B\* have flowed into stable coins like USDT, USDC, BUSD, UST, and DAI) > > **Lack of Accountability** > > The relatively anonymous transfer of value between parties was supposed to be a positive aspect of bitcoin. Your money, so do what you want with it. The problem is, there are a lot of other people that also want anonymity — human traffickers, dangerous drug smugglers, crime syndicates, tax evaders. Sure they can also use USD (and most of them do), but they are also traceable if they enter the global financial system. > > Making it easier for criminals to evade authorities makes everyone less safe. And sure, no one likes to pay taxes, but consider the alternative. Roads, schools, social services, some hospitals, police and fire departments, they all rely on taxes. > > **Lack of security** > > Unlike gold, which is pretty much indestructible, Bitcoin holdings depend on keeping seed phrases secure. If there were a house fire a gold bar might melt, but it can be reformed. A hardware wallet will be destroyed and any seed phrases stored on paper will be gone. That's part of gold's appeal as a store of value. > > Also, were there to be an internet outage in any widespread way, Bitcoin is useless as a transaction currency (part of the appeal of physical paper money and metal coins.) While unlikely, this scenario speaks to the lack of overall security in Bitcoin as a means of exchange (it has other benefits like cryptographic security, but its lack of physicality poses problems with public perception, and practical uses.) > > **Acts like fiat, moves like fiat . . .** > > Bitcoin remains highly correlated to traditional finance markets (two recent readings were the highest they've been -- see link below) and doesn't exactly act as a hedge against inflation when it plummets in the face of, well, high inflation. > > What this shows is that big money is controlling Bitcoin (and by association the rest of crypto) by reacting in the same risk-off reaction when inflation flares up. > > It goes something like this: > > * When inflation rises, the Fed tightens money supply to slow things down. > * Big money flees from riskier assets like company stock (they likely won't be as profitable in a high inflation world) > * Stock prices drop \[and here's the problem\] > * Money does not flow INTO crypto as a hedge against this risk, it also flees. > > **Conclusion** > > Fighting fiat money printing excesses was never going to be easy, but as with most revolutions, unintended consequences often derail the original vision. > > For one, government policies can avert the worst of political impulses. That doesn't require a wholesale financial market revolution. > > U.S. inflation has also been remarkably low for well over two decades. It was a once in a century global pandemic that forced a massive print run of dollars. > > Bitcoin has also become just another a plaything for the rich, a commodity to be bought and sold for profit rather than the antidote to centralized money creation. And because even larger stacks of fiat are on the sidelines waiting to jump in, volatility is going to get even worse with big swings as fund managers chase and take profits. > > None of this means Bitcoin has no value in global finance. It just means it isn't going to serve the purpose as originally intended. > > \------------------ > > * For Bitcoin correlation to stocks see: [https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes](https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes) > * Stablecoin totals for the five mentioned above were calculated on 1/11/21 from CoinMarketCap - [https://coinmarketcap.com/](https://coinmarketcap.com/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2lpo/top_10_bitcoin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/umsqe8/monthly_optimists_discussion_may_2022/).

SuperDuperPower

It takes 5 seconds to convert USDT to fiat. They’ll be fine. But yeah Tether has problems.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by jeff406 which won 2nd place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Terra is built as a modular blockchain within the [Cosmos](https://cosmos.network/ecosystem/apps) ecosystem, which means it exists alongside several other great DeFi platforms. > > First and foremost, Terra is providing decentralized stablecoins at a time when we need it most. The threat of a [Tether collapse](https://www.wired.com/story/why-tethers-collapse-would-be-bad-for-cryptocurrencies/) is as prevalent as ever, and TerraUSD (UST)--one of Terra's decentralized stablecoin offerings--is serving as a crucial component in the risk-management process. In fact, major cryptocurrency exchange [Kucoin has been increasing the amount of UST pairs available](https://www.kucoin.com/news/en-ust-market-to-add-new-trading-pairs), enabling their users to wean off USDT while still making all the necessary trades. > > Another reason that traders may struggle to kick Tether to the curb is the desire for stablecoin yield-farming. Luckily, Terra's [Anchor Protocol](https://www.anchorprotocol.com/) allows users to earn 19.6% APY on their TerraUSD tokens, "powered by staking returns from multiple Proof of Stake blockchains." Users are also able to borrow TerraUSD by bonding assets such as ATOM, DOT, or ETH. > > Additionally, [Mirror Protocol](https://mirrorprotocol.app/#/trade) allows users to gain exposure to synthetic securities without the hurdles of traditional brokerages. > > Terra's ecosystem of financial tools provide a decentralized, 1:1 replacement for modern financial services. Beyond the stability that TerraUSD brings as a replacement to Tether, Terra's services can truly bring the benefits of modern financial products to unbanked individuals across the globe. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

Random5483

I have more confidence in USDTea eventually regaining its peg than I have in USDT ever regaining its peg. USDTea may even be safer than USDT, but we won't know without a proper external audit.

Lavasioux

Stellar USDC seeing some serious volume; Sdexexplorer.com Is this evidence of more people movimg away from USDT Tether? And i wonder will this movement eventually be reflected in XLMs price?

LegendoftheASX

I'd argue USDT is a scam

Lancer37

Yeah but if it happens it will be easy to argue that USDT's downfall was inevitable and the sooner it collapsed the better. It will grow and grow if left unscrutinized. "Progress is slow but eventual, so if it has to happen it has to happen," Type of thinking

CointestAdmin

#Tether Con-Arguments Below is an argument written by Blendzi0r which won 1st place in the Tether Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > *First published on:* [*30.09.2021*](https://np.reddit.com/r/CryptoCurrency/comments/og1sms/rcryptocurrency_cointest_top_10_category_tether/hewuzi9/) > > *Last edited on: no edits* > > # Intro > > Tether (USDT) is a digital dollar – a stablecoin pegged to US dollar. Stablecoins are a type of cryptocurrency with a value fixed to other assets (usually assets outside of the cryptocurrency space, e.g. fiat currencies, precious metals, etc.). Their main purposes are: 1) help investors escape the volatility of the cryptocurrency market and 2) allow investors to buy cryptocurrencies on exchanges that do not offer fiat deposits. USDT is currently the most popular stablecoin. \[1\], \[2\], \[3\] > > # Cons > > **It’s centralized** > > Tether is centralized. Tether Limited (controlled by the owners of Bitfinex) is responsible for issuing USDT \[1\]. Tether Limited is free to issue and freeze all USDT. When PolyNetwork was famously hacked in August 2021, all of the USDT that hacker stole was frozen and then returned to the victim. There were other such examples in the past (e.g. when KuCoin was hacked in 2020). > > As much as the above examples are positive, nothing stops Tether from being less ethical in the future. Especially taken into consideration their shady history. Not to mention that centralization is against one of the core principles of cryptocurrencies. > > **It lied on several occasions** > > Tether always claimed that they and Bitfinex are two completely separate entities and denied all the speculations that they are the same. In November 2017, “The Paradise Papers” revealed Bitfinex and Tether are indeed run by the same people. \[4\] > > Until February 2019, Tether claimed to be backed by the US dollar on a one-to-one basis: “Every tether is always backed 1-to-1, by traditional currency held in our reserves.” – read their website. The text was then changed to: “Every tether is always 100% backed by our reserves (…) and, from time to time, may include other assets (…). > > However, in April 2019, Tether’s general counsel admitted that the stablecoin can back only around 74% of its supply in circulation \[5\]. It was also reported by the New York Attorney General that at some point in time Tether didn’t even have access to banking services. Therefore, Tether lied about its backing. \[6\] > > Tether promised to share reports from independent auditors on their reserves. They haven’t done so until **forced** by a court order in 2021. And even then they couldn’t stop themselves from misleading the public. In a tweet from Paolo Ardoino, Tether’s CTO, he stated that they share the report because “community asked for it." \[7\] > > **There are some shady people behind it…** > > The most important people at Tether are surrounded by many controversies: > > Jan Ludovicus (or Jean Louis) **van der Velde**, Tether’s CEO, is a ghost. There’s barely any information about him \[4\]. This is rather concerning when you take into consideration he’s a CEO of a multi-billion company. > > **Giancarlo Devasini**, Tether’s CFO, boasts he built companies that generated 100 million euro in revenue but documents show it was almost 10 times less. He was sued by Microsoft for pirating their software and by Toshiba for infringing its DVD-related patents. And these are just a few examples of Devasini’s questionable doings and statements. \[6\] > > **Phil Potter**, CEO of Bitfinex (Bitfinex is the only partner of Tether. And it’s a company that actually controls Tether. So the only partner of Tether is a company that… controls it), was fired from Morgan Stanley in the 90’s after he bragged about his lavish lifestyle in an interview for The New York Times. \[8\] > > Letitia James, the New York attorney-general, called those people “unlicensed and unregulated individuals (…) dealing in the darkest corners of the financial system." \[6\] > > **…against whom criminal charges might be filed** > > US Justice Department that is investigating Tether and in July 2021 it reported that it is now considering whether it should file criminal charges against Tether executives. The charges might be based on the assumption that Tether lied about its business when it was opening bank accounts all over the world. \[9\] ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2m4t/top_10_tether_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/umsqe8/monthly_optimists_discussion_may_2022/).

CointestAdmin

#Tether Pro-Arguments Below is an argument written by Shippior which won 2nd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether (USDT) is a stablecoin that has it value fixed to the US Dollar, which means that it is designed to always have the value of 1.00 dollar. It it claimed by the organisation behind Tether that they will keep a dollar in reserve for every Tether that is created. It was created back in 2014 on the Bitcoin blockchain as RealCoin and was rebranded to Tether in 2016. Sinc then it has reached a market cap of $70B and it is found on many blockchains like Etheruem, EOS and Algorand. Tether is the most widely used stablecoin and is available on many exchanges and in many different trading pairs. Compared to the other available stablecoins it certainly is the most flexible one. > > Stablecoins are mostly used as a hedge when the crypto markets are going down but when traders want to avoid the fees of turning their crypto into fiat. Although the value might vary slightly around $1.00 it has so far always recovered. The larger the market cap the lower the volatility that is expected, which is exactly what you would desire from a stablecoin. > > The claim that USDT is fully backed by dollars has led to many different lawsuits. As of late the Tether Foundation has offered an insight in the backing. It was stated the USDT is backed by \~$0.74 in both currency and commercial papers. This would put Tether in the top 10 of holders of commercial papers worldwide according to JPMorgan. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2m25/top_10_tether_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

gimmedatcrypto

The next phase of LFG liquidation is specifically focusing on reimbursing small wallets of up 50kUSD via USDT or USDC, whichever is decided upon. The VC investors already made out well, did they not?

Bucksaway03

I'm a little guy and I'm still curious how this is going to work. Unless I'm getting reimbursed with USDC or USDT how are they going to do 1 to 1

zack14981

> ‘going concern’ language, a form of words that implies a business is stable enough to meet its obligations for the time being, but which suggests the accountant is taking a step back in judging the business as viable. Even IF funds are backed, any significant outflow from USDT could be big trouble.

Ok-Nefariousness1340

>Paper backed stabled coins such as USDT inherit more counterparty and regulatory risk than I am comfortable with. Given they are backed by US dollars, they have a single point of failure. They exist only if current administration within the US government allows them to exist. >Call me paranoid, but I would not be surprised at all to wake up and hear that some patriotically named bill passed in the middle of the night regulating these types of coins effectively illegal. What would a scenario like this look like? Would the US government actually do something like, for example, confiscating the funds backing these tokens, or forbidding anyone from exchanging them for dollars? Would they order them to use their freeze functionality to lock down everything in defi apps like Uniswap? The author describes DAI as a hedge against this risk. I like DAI but not convinced about it working for this purpose. It came very close to collapsing a few years ago when Ethereum crashed under $100. They decided to reinforce it by... adding centrally backed assets, mostly stablecoins, [as collateral](https://daistats.com/#/), which are now the majority of it. Considering such a cataclysmic event as the overnight death of USDC and USDT would also cause a massive Ethereum crash, it seems highly unlikely that DAI would be able to retain value when those coins do not. I don't think sudden erratic action to wipe out the wealth of a whole class of investors is really their style though; seems more likely that any harmful regulation will be of the slow and insidious type, though this could be wrong.

Faze-Cumshot

UST was backed by air, it would be "stable" as long as their was demand for LUNA. Once that went it collapsed. Even $80k BTC wasn't enough to save the peg. I don't think there would be sudden collapse like this in top coins. USDT is shady but they did recently paid liquidate $7B.

LordPrettyMax

Lmao anyone who takes advice from Reddit without liberal heaps of salt is not going to make it in crypto. Anyone who gets scared from what buttcoiners have to say aren’t gonna make it in crypto. Anyone who is not skeptical about USDT is also not gonna make it in crypto. Both crypto Reddit and buttcoiners are both echo chambers. If you get your financial advice from discord, Reddit, or any other social media platform you deserve to lose money.

suninabox

>Tether has only been fully backed 27% of the time, and yet USDT has substantially maintained its peg for 8 years. This is a creative way of saying "has repeatedly lost its peg over 8 years" despite claiming to be fully backed for almost all of that time. The level of backing is irrelevant when they control redemptions, not users. They've been 0% backed before, they still issued Tether's that were still valued at roughly $1 because there's no way for anyone to redeem Tethers without Tether's say so. All they need is enough money to maintain the peg, which given the level of wash trading on exchanges is probably a tiny fraction of their outstanding liabilities at any one time. > That means that 1) people don't care, and 2) people feel it is sufficiently backed I don't know why you're saying "people" like USDT is freely redeemable. You need $100,000 of Tethers before Tether will even consider directly redeeming yours and to my knowledge no one has ever even tested if that's true. All we do know is that Tether have deals with a small number of large exchanges and staking platforms who comprise the vast majority of Tether use and ownership and so have no interest in collapsing the scheme at will, sufficed to say that they will be first out of the door when the collapse happens and retail users will be left with nothing. > I'll take an almost-fully-backed stable coin over fractional-reserve banks, especially if over the $250k insured limit. Do you have over $250,000 in cash? Why would you keep so much cash around and not actually invest it in something that either makes money or improves your life?

fabzo100

new projects almost always release on AMM DEX first. on AMM DEX LP if price changes, it would rebalance the total pool by itself. For example if token XYZ is priced at $1 and 1 USDT is at $1, that means if the project puts 10,000 XYZ and $10,000 USDT, you have 10,000 worth of XYZ/USDT LP token. every 1 XYZ/USDT LP token can be traded back to 1 XYZ and 1 USDT now if XYZ is priced at $2, that means 1 XYZ/USDT LP token will give you 0.5 XYZ and 1 USDT instead since 1 XYZ now cost 2 USDT. so if price keep going higher, as you can see liquidity will get drier

Master-Monitor112

Nice blog post. Thanks for the write up on stable coins. I was deciding which one is the best to use from now on because I don’t trust USDT after it dropped to 96 cents.

Always_Question

As pointed out by U.S. regulators, Tether has only been fully backed 27% of the time, and yet USDT has substantially maintained its peg for 8 years. That means that 1) people don't care, and 2) people feel it is sufficiently backed. I'll take an almost-fully-backed stable coin over fractional-reserve banks, especially if over the $250k insured limit.

lordhobbington

These are some worst times, yes we are in the bear market, but having these kind of fud is not a good thing. I keep hearing the news of that USDT will also lose the peg.

suninabox

>He ought to at least disclose the potential conflict in his article It's not a potential conflict because not only does no one use USDT as an ecommerce payment platform, its not even possible to use it that way. They're completely different things. Crypto doesn't compete with credit card payments for the same reason Crypto.com offered Visa card. There's no way you can turn Tether into a way to accept credit cards on your website. There is no even a .0001% chance of Tether every taking any of Stripe's business because its not possible.

Purely_coincidental

So, to be clear, Alameda and FTX are propping up the USDT fraud constantly. They swear they know USDT to be legit but we all know the truth.

Purely_coincidental

FTX buys your USDT for a few decimal points for than 1$ then redeems it for 1$ each. This is well known.

suninabox

>USDT and Stripe both play in a similar space? By "similar space" do you mean one is the most popular ecommerce payments solution in the world and the other is used almost entirely on corrupt crypto exchanges?

--RocketSurgeon

USDT ? Lol

CointestAdmin

#Regulation Pro-Arguments Below is an argument written by Magnetronaap which won 3rd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Regulation is necessary or a necessary evil if you like. With this entry I won't discuss specific regulation, because I'm not well versed enough in (financial) law from any country to point out what regulation specifically is best. Instead, I'll outline why regulation is necessary. > > If you browse r/cryptocurrency regularly you will find that many will disagree with this statement, but searching the subreddit for [scam](https://www.reddit.com/r/CryptoCurrency/search?q=scam&restrict_sr=on&include_over_18=on&sort=relevance&t=all) should tell you otherwise. Unfortunately, the cryptosphere is infested with scams and dodgy projects looking to make quick money and disappear. The question on regulation is not whether it should exist, but to what extent. > > Another real world example is the 2008 sub-prime mortgage implosion. For years bankers gave mortgages to people that couldn't afford it, assuming the housing prices would just keep on rising and in case of a default the mortgage would be covered by the increased price of the house. That in itself is a bad take, but not necessarily extremely destructive. It became far worse when these banks decided to bundle their mortgages together and sell these debt papers to other investors. Cutting these packages of debt further and further into even shittier packages with the shittiest of shit mortgages led to a situation where banks held massive amounts of mortgages of people who were never going to be able to repay their debt. Pair that with banks not keeping enough money in reserves to deal with such a massive setback and you have the powder keg that was 2008. Eventually the housing market imploded and American banks dragged the entire world into financial ruin. A lot of this could have been avoided by.. regulation. > > Unfortunately, the hypercapitalist American economy treated (and still treats) regulation the same as many r/cryptocurrency users. They hate it and don't want it, setting everyone up for a self-fulfilling prophecy. Because just like the housing market in 2008, the crypto investment bubble is going to be just fine, until it isn't. Tether is one such example in the crypto world that comes to mind. Treated by most as just fine, while a lot of us understand that there is no way that all of USDT is backed up by real capital. Meaning that if Tether ever gets into trouble it'll implode just like the 2008 housing market. > > That is why we need regulation. To protect individual investors and the entire cryptosphere at the same time. The examples pointing out why are out there, staring us in the face. We even acknowledge them, but at the same time scoff at ways to prevent them from becoming a crypto reality. Don't be [Ikaros](https://en.wikipedia.org/wiki/Icarus#:~:text=In%20Greek%20mythology%2C%20Icarus%20(%2F,the%20creator%20of%20the%20Labyrinth.&text=Icarus%20ignores%20Daedalus's%20instructions%20not,in%20his%20wings%20to%20melt.). ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

LegitDovey

Are you buying cryptos to have more USD/USDT in your portfolio? Or you guys buying them to sell and have more BTC or ETH?

Always_Question

Doesn't the author work for Stripe and so therefore has an internal conflict of interest given that USDT and Stripe both play in a similar space?

reshail_raza

Do you think every stable coin is UST. I am all in USDT.

Corniss

So what happens with the price ? Business as usual or will it turn into something like a stable coin like USDT ? Obviously i am not so familiar with all the intricacies here.

Underrated321

TLDR: Nox Bitcoin, a Brazilian cryptocurrency exchange, has decided to refund all UST holders at a $1 rate with Tether’s USDT. Nox Bitcoin spent approximately $US127,000 (620,000 reais) reimbursing all of its clients. Insider trading problems surge in the crypto ecosystem.

IamTheTrader

USDT is still the main stable used in Binance. Are you doing any active moves to change that to BUSD? Did you check the backing of USDT? There are some rumors that it is not fully backed.

InsignificantOcelot

This is what Terra was doing: Burn 5 million premined Luna for UST in small batches over many wallets -> aggregate into larger wallets and bridge to ERC20 UST -> swap to MIM at a favorable rate timed to when degenbox would open up the leveraged UST farm, using degenbox depositors as exit liquidity -> swap the MIM to USDT or another major stable -> send to CEX All of this is verifiable on-chain. It didn’t just fail. It failed specifically because they were siphoning out the liquidity from the system using above average returns paid in bad debt as an incentive. It was a slow rug and a ponzi.

PoojaaPriyaa

Hi CZ, thanks you for doing this! Is it possible can Binance decrease minimum buying amount is 10USDT or its equivalent. It will great if anyone can join and buy any coins even with 1USDT. Thank You so much 😊

gwynbleidd2511

It's double collateralised and reflexive in its rebalancing & variable yields. To take it to zero would require another a bigger vector to attack - USDT, and Near, in addition to USN exit if the faith disappears. Yields would dry, reserves would be spent, but the peg can be saved.

Struce68

Maybe, time will tell. And I hope your right. But I use to trade BTC following tether prints. Tether prints 100 million, get moderate leverage on BTC/ETH, sell when it runs, buy back in a few days later. Then tether started printing Billions at a time and that was really good times. Unfortunately someone figured this out and now tether prints at the beginning of the month and slowly leaks it into the market and my trade strategy was less consistent. But the one thing that rarely happened was tether getting burned. Last time tether burned USDT was mid 2018, after the 2017 “collapse” of bitcoin. Now tether burned $10 billion. Not a good sign for the near future of crypto. Also, if you follow the bitcoin rainbow chart, we are past the peak and in the “buy” phase. It seems very likely there will be a better time to purchase in the future. But who knows, maybe it will go up. I can’t predict the future. Im just some anonymous asshole on the internet.

Xen7963

The end of USDT is NEAR

gesztenye62

The more people talks about the USDT the more i get scared.

canyoujuststopplease

Girl, what? USDC isn't in the same ballpark of shadiness that USDT occupies.

throwaway1177171728

And the guys selling it for USDT are doing the same. What's your point?

GodlordHerus

Hello CZ Have you or any affiliated parties actully done a USDT redemptions?

Tarskin_Tarscales

Honestly, at this point I fully expect and hope for a USD CDBC to take the role of USDT in almost all exchange pairs.

_Whit3

USDC > USDT no🧢

DMCarter_

Even if the USDC marketcap is closing in on Tether's that's unfortunately not it. USDC is still greatly behind in terms of Volume, almost a 10x difference between USDC and USDT. This means that Tether is being used a lot more than USDC is, so even if USDC surpasses the MC of Tether, it could still be not as used as Tether.

M-Tyson

Is the entire terra ecosystem done for? I have screener alerts set up for all Binance USDT pairs but maybe it's time I trim that list. I'm thinking ANC and MIR are also done for?

MeatCrap

Well, I have been following them since the beginning. The amount of shady things USDT was involved, or the cases filled against them, made me fear for my money tbh. I moved my assets to USDC, BUSD and eMoney stablecoins which at least are backed by real world assets.

PageSubstantial9096

What's Binance position to UST holders? Brazilian cryptocurrency exchange "Nox Bitcoin" has refunded USDT to their UST holders? https://portaldobitcoin.uol.com.br/corretora-brasileira-vai-gastar-r-620-mil-para-ressarcir-investidores-afetados-pelo-derretimento-da-stablecoin-ust/

Trinituz

Step 1: Get Tether Step 2: Mint USDUSDT and give it away Step 3: The USDUSDT holder dies. No one will redeem it back for USDT. Step 4: Get free USDT to redeem for USD Step 5: Profit (While joke this is actually one of the way stablecoins company rakes in free money)

fckiforgotmypassword

Do you see any risks in USDT? If something happens with USDT what effect do you expect that to have on the market, short and long term?

Master-Monitor112

Theirs always been doubts about USDT. In 2017 people said it probably collapse soon and they still around today.

Mallardshead

It isn't. You have to adhere to the securities legal framework. You can't transfer securities without adhering to their laws. For example, I can't send a security to someone that isn't registered to receive securities. You can't issue/create more tokens/coins either without the paperwork and taxes. Coins/tokens are basically shares. This kills the blockchains that get designated securities, and if they were decentralized to begin with, and impairment resistant, it wouldn't be a problem. If they don't want to make protocol changes, or don't want to adhere to securities laws, fine. They'll be delisted by every single US exchange within 90 days. Then most international exchanges as well. Their apps/wallets will be removed from the Apple and Google store. Stablecoins like (USDT and USDC) will cease operation within these protocols. Security designations will bring an s-curve adoption shakeout of crypto. 🙏 NFTs will probably be the only survivor.

mannone

How reliant are Binance on USDT? Do you believe that they have as much backing as they claim? How do you assure of this?

coinfeeds-bot

tldr; Tether reserves the right to delay the redemption or withdrawal of Tether tokens if such delay is necessitated by the "illiquidity or unavailability or loss of any Reserves held by Tether to back the Tether Tokens," according to Tether’s Terms of Service. USDT is “valued” 1:1 but not exclusively backed with fiat currency. Tether may delay any claim in case of lack of liquidity. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*

Taykeshi

Why are you dealing with USDT? How is usdt and busd backed?

Pacheem

After the Luna scandal, what are your thoughts on other stablecoins like USDT,USDC,etc. ?

PynkTrucker

There is no UST. Using USDT and USDC. The token supply going back to $1 billion according to Kwons first proposal. And there will be 2 tokens that coexists. LUNC Luna Classic and LUNA V2.

customtoggle

Truth A nice quiet death for USDT would be great 🤩

Bouby6Killer

The flippening won't be ETH overtaking BTC, it will be USDC replacing USDT 😝

troopski

Lol, I need to take some of my crypto off kucoin I think. I was ledning a small amount of USDT for a while.

shubz_gadget_reviews

People can discuss USDT bro, you can't stop them. If USDT collapses then so be it. Crypto is bigger than USDT.

reshail_raza

Here is a hint of how to spot the bottom. When you see BTC.D making bullish weekly candle also price of BTC makes bullish candle while USDT.D making bearish candle. That will be the time of long term investment.

CURIOUS_RANDOM_DUDE

some stupid fucking USDT dollar peg evidently. But we're still in hell even with it being back almost up to 100% normal.

South-Security-Mouse

If USDT depeg, we will easily see BTC/USDT trading above 100k

Fo-One-Deuce

USDT is the leader in trading pairs for stablecoins, so it would cause a shift/disruption from that perspective. But, the market would adjust, and another stable would take its place. Honestly, I'm looking forward to the day when USDC overtakes USDT my market cap and the shift happens naturally and not as abrupt as an outright run from USDT.

CointestAdmin

#Tether Con-Arguments Below is an argument written by madpanda94 which won 3rd place in the Tether Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > My analysis comes from a post written by me 1 month ago [https://www.reddit.com/r/CryptoCurrency/comments/piks1m/knowyourcrypto\_5\_september\_5\_2021\_tether\_usdt/](https://www.reddit.com/r/CryptoCurrency/comments/piks1m/knowyourcrypto_5_september_5_2021_tether_usdt/) > > # What is it? > > Tether is a stablecoin, which means it's a digital currency that aims to be a stable replacement for a legal tender (Fiat money). On the official website, the definition assigned to cryptocurrency is the following: "Tether converts cash into digital currency, to anchor or tether the value to the price of national currencies like the US dollar, the Euro, and the offshore Chinese yuan". From this we can deduce that the creators of the project wanted to assign to the digital currency the purpose “to link the value of the cryptocurrency to fiat money”. When we talk about Tether, nine times out of ten we refer to the stablecoin USD₮, the acronym that identifies a single tether linked to the price of one dollar. In fact, Tether project also incorporates other stablecoins: EUR₮: a tether linked to the price of one euro. CNH₮: a tether linked to the price of one Chinese yuan. > > > # How does it work? > > Tether transitions are mainly based on the Omni platform, which in turn is based on the Bitcoin blockchain. However, the USDT stablecoin also works on other blockchains, including Ethereum's one, where Tethers are minted in the form of ERC20 tokens. Many traders consider Tether as a safe haven asset like gold, being aware that it still remains a digital currency. Investors often sell the cryptocurrencies stored in their electronic wallet by exchanging them with USDT, in order to be able to count on a stable cryptocurrency to be used in numerous trading sites for virtual currencies. The fluctuation in the value of each USDT is minimal, usually never deviating from the range between $ 0.99 and $ 1.02. > > > # Where to store it? > > Tether purchase procedure is similar to that required by other cryptocurrencies. First, however, a wallet that supports the Tether stablecoin must be created. One of the best choices is the Tether wallet that can be downloaded from the official cryptocurrency portal. To download it is sufficient to complete the registration to the portal. Alternatives are MyEtherWallet (MEW), OmniWallet and Exodus, all three electronic wallets to download as desktop computer software. For those interested in a hardware solution, we recommend the purchase of Ledger Nano S. > > > # Pros&Cons > > \*DISCLAIMER\* These lists are subjective, it depends from person to person > > **Pros** > > > 1. It's a stablecoin that manages to maintain a price close to the reference fiat > > **Cons** > > 2. Because of its centralization, only Tether can issue the asset > > 3. Tether has the power to block and freeze user funds > > 4. It's impossible to do cross-chain operations > > 5. Tether is not sufficiently accepted as a payment method yet ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pz45ef/rcc_cointest_top_10_tether_conarguments_october/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/umsqe8/monthly_optimists_discussion_may_2022/).

CointestAdmin

#Tether Pro-Arguments Below is an argument written by madpanda94 which won 2nd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > My analysis comes from a post written by me 1 month ago [https://www.reddit.com/r/CryptoCurrency/comments/piks1m/knowyourcrypto\_5\_september\_5\_2021\_tether\_usdt/](https://www.reddit.com/r/CryptoCurrency/comments/piks1m/knowyourcrypto_5_september_5_2021_tether_usdt/) > > # What is it? > > Tether is a stablecoin, which means it's a digital currency that aims to be a stable replacement for a legal tender (Fiat money). On the official website, the definition assigned to cryptocurrency is the following: "Tether converts cash into digital currency, to anchor or tether the value to the price of national currencies like the US dollar, the Euro, and the offshore Chinese yuan". From this we can deduce that the creators of the project wanted to assign to the digital currency the purpose “to link the value of the cryptocurrency to fiat money”. When we talk about Tether, nine times out of ten we refer to the stablecoin USD₮, the acronym that identifies a single tether linked to the price of one dollar. In fact, Tether project also incorporates other stablecoins: EUR₮: a tether linked to the price of one euro. CNH₮: a tether linked to the price of one Chinese yuan. > > > # How does it work? > > Tether transitions are mainly based on the Omni platform, which in turn is based on the Bitcoin blockchain. However, the USDT stablecoin also works on other blockchains, including Ethereum's one, where Tethers are minted in the form of ERC20 tokens. Many traders consider Tether as a safe haven asset like gold, being aware that it still remains a digital currency. Investors often sell the cryptocurrencies stored in their electronic wallet by exchanging them with USDT, in order to be able to count on a stable cryptocurrency to be used in numerous trading sites for virtual currencies. The fluctuation in the value of each USDT is minimal, usually never deviating from the range between $ 0.99 and $ 1.02. > > > # Where to store it? > > Tether purchase procedure is similar to that required by other cryptocurrencies. First, however, a wallet that supports the Tether stablecoin must be created. One of the best choices is the Tether wallet that can be downloaded from the official cryptocurrency portal. To download it is sufficient to complete the registration to the portal. Alternatives are MyEtherWallet (MEW), OmniWallet and Exodus, all three electronic wallets to download as desktop computer software. For those interested in a hardware solution, we recommend the purchase of Ledger Nano S. > > > # Pros&Cons > > \*DISCLAIMER\* These lists are subjective, it depends from person to person > > **Pros** > > > 1. It's a stablecoin that manages to maintain a price close to the reference fiat > > **Cons** > > 2. Because of its centralization, only Tether can issue the asset > > 3. Tether has the power to block and freeze user funds > > 4. It's impossible to do cross-chain operations > > 5. Tether is not sufficiently accepted as a payment method yet ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pz44yg/rcc_cointest_top_10_tether_proarguments_october/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

Omega3568

If I had a ton of USDT if put it in BTC

Shinichu

If people flee USDT, they would prob go into USDC since it's seen as a safer option.

cheeruphumanity

The example is really bad since USDT has certainly issues. The general statement is true though. A lot of anti-crypto narratives are seeping into this sub right now.

CointestAdmin

#Tether Con-Arguments Below is an argument written by madpanda94 which won 3rd place in the Tether Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > My analysis comes from a post written by me 1 month ago [https://www.reddit.com/r/CryptoCurrency/comments/piks1m/knowyourcrypto\_5\_september\_5\_2021\_tether\_usdt/](https://www.reddit.com/r/CryptoCurrency/comments/piks1m/knowyourcrypto_5_september_5_2021_tether_usdt/) > > # What is it? > > Tether is a stablecoin, which means it's a digital currency that aims to be a stable replacement for a legal tender (Fiat money). On the official website, the definition assigned to cryptocurrency is the following: "Tether converts cash into digital currency, to anchor or tether the value to the price of national currencies like the US dollar, the Euro, and the offshore Chinese yuan". From this we can deduce that the creators of the project wanted to assign to the digital currency the purpose “to link the value of the cryptocurrency to fiat money”. When we talk about Tether, nine times out of ten we refer to the stablecoin USD₮, the acronym that identifies a single tether linked to the price of one dollar. In fact, Tether project also incorporates other stablecoins: EUR₮: a tether linked to the price of one euro. CNH₮: a tether linked to the price of one Chinese yuan. > > > # How does it work? > > Tether transitions are mainly based on the Omni platform, which in turn is based on the Bitcoin blockchain. However, the USDT stablecoin also works on other blockchains, including Ethereum's one, where Tethers are minted in the form of ERC20 tokens. Many traders consider Tether as a safe haven asset like gold, being aware that it still remains a digital currency. Investors often sell the cryptocurrencies stored in their electronic wallet by exchanging them with USDT, in order to be able to count on a stable cryptocurrency to be used in numerous trading sites for virtual currencies. The fluctuation in the value of each USDT is minimal, usually never deviating from the range between $ 0.99 and $ 1.02. > > > # Where to store it? > > Tether purchase procedure is similar to that required by other cryptocurrencies. First, however, a wallet that supports the Tether stablecoin must be created. One of the best choices is the Tether wallet that can be downloaded from the official cryptocurrency portal. To download it is sufficient to complete the registration to the portal. Alternatives are MyEtherWallet (MEW), OmniWallet and Exodus, all three electronic wallets to download as desktop computer software. For those interested in a hardware solution, we recommend the purchase of Ledger Nano S. > > > # Pros&Cons > > \*DISCLAIMER\* These lists are subjective, it depends from person to person > > **Pros** > > > 1. It's a stablecoin that manages to maintain a price close to the reference fiat > > **Cons** > > 2. Because of its centralization, only Tether can issue the asset > > 3. Tether has the power to block and freeze user funds > > 4. It's impossible to do cross-chain operations > > 5. Tether is not sufficiently accepted as a payment method yet ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pz45ef/rcc_cointest_top_10_tether_conarguments_october/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/umsqe8/monthly_optimists_discussion_may_2022/).

CointestAdmin

#Tether Pro-Arguments Below is an argument written by Blendzi0r which won 1st place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > *First published on:* [*30.09.2021*](https://np.reddit.com/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/hewpzqt/) > > *Last edited on: no edits* > > # Intro > > Tether (USDT) is a digital dollar – a stablecoin pegged to US dollar. Stablecoins are a type of cryptocurrency with a value fixed to other assets (usually assets outside of the cryptocurrency space, e.g. fiat currencies, precious metals, etc.). Their main purposes are: 1) help investors escape the volatility of the cryptocurrency market and 2) allow investors to buy cryptocurrencies on exchanges that do not offer fiat deposits. USDT is currently the largest stablecoin. \[1\], \[2\], \[3\] > > # Pros > > **It’s the biggest and oldest stablecoin** > > Tether was launched in 2014 as Realcoin and renamed to Tether the same year \[1)\]. It’s the first successful stablecoin. During the years, it has completely dominated the stablecoins market and despite the recent growth of other stablecoins, mainly USDC, Tether is still the biggest and most popular stablecoin by far. As of September 2021, its market cap is two times bigger and its volume is more than twenty times bigger than that of USDC, the second largest stablecoin. In fact, USDT’s trading volume is unmatched by any other cryptocurrency. \[1\] > > It is also worth pointing out that more than 80% of stablecoins launched in 2015 are now gone. \[4\] > > **It has most trading pairs** > > The market cap and volume speak for themselves – Tether is the most popular stablecoin by far. There are very few exchanges that don’t except USDT and all major coins have trading pairs with USDT. Even Coinbase, which is responsible for Tether’s rival stablecoin – USDC, lists Tether on its exchange as of May 2021. \[5\] > > It is also backed by several international currencies and, therefore, allows people in different countries purchase coins that they otherwise wouldn’t be able to get. > > **Despite all the concerns, USDT is still here** > > There are many controversies around Tether. Perhaps the most concerning one is whether USDT has its reserves fully backed. Many critics believe that Tether isn’t fully backed and if many investors were to redeem tethers at the same time, there would be no liquidity \[6\]. Situations when people redeem tokens en masse usually should happen during market crashes. In the last 4 years we had three significant market crashes – in 2018, in March 2020 and in May 2021. USDT survived all of them. > > **The latest breakdown of the reserves is a step in the right direction** > > Tether has been criticized for lack of transparency – and rightly so – for many years. In May 2021, for the first time since 2014, Tether has finally given us an insight into their reserves. The first report was rather disappointing as it turned out that barely 3% of the reserves are made-up by cash. Moreover, 65% of the reserves were commercial paper. No details about what type of commercial paper that is were shared. \[7\] > > However, the latest report, from August 2021, discloses the reserves breakdown as of 30 June 2021 \[8\]. And it looks much better: cash and bank deposits make up 10% of the reserves, 25% of the assets are in Treasury bills (they are considered very safe assets) and there are more details – the report includes information about the rating and breakdown of maturity of the commercial paper and certificates of deposit. The report seems to be on pair with that of USDC. > > **USDT is centralized. But is it so bad in the case of a stablecoin?** > > Decentralization is essential for cryptocurrency. But so is replacing fiat. So is decentralization that important in the case of a stablecoin? > > The fact that USDT is centralized also allowed it on many occasions to do good things. It returned USDT sent to wrong addresses and cooperated with law enforcement officials and blocked/froze addresses that used USDT for illegal activities. \[9\], \[10\] > > \_\_\_\_\_\_\_\_\_\_\_\_ > > ^(Sources:) > > ^(\[1.\]) [^(https://en.wikipedia.org/wiki/Tether\\(cryptocurrency)](https://en.wikipedia.org/wiki/Tether(cryptocurrency) > > ^(\[2.\]) [^(https://tether.to/wp-content/uploads/2016/06/TetherWhitePaper.pdf)](https://tether.to/wp-content/uploads/2016/06/TetherWhitePaper.pdf) > > ^(\[3.\]) [^(https://en.wikipedia.org/wiki/Stablecoin)](https://en.wikipedia.org/wiki/Stablecoin) > > ^(\[4.\]) [^(https://papers.ssrn.com/sol3/papers.cfm?abstract\\id=3835219)](https://papers.ssrn.com/sol3/papers.cfm?abstract\id=3835219) > > ^(\[5.\]) [^(https://blog.coinbase.com/tether-usdt-is-now-available-on-coinbase-214f075deaa2)](https://blog.coinbase.com/tether-usdt-is-now-available-on-coinbase-214f075deaa2) > > ^(\[6.\]) [^(https://www.theverge.com/22620464/tether-backing-cryptocurrency-stablecoin)](https://www.theverge.com/22620464/tether-backing-cryptocurrency-stablecoin) > > ^(\[7.\]) [^(https://tether.to/wp-content/uploads/2021/05/tether-march-31-2021-reserves-breakdown.pdf)](https://tether.to/wp-content/uploads/2021/05/tether-march-31-2021-reserves-breakdown.pdf) > > ^(\[8.\]) [^(https://tether.to/wp-content/uploads/2021/08/tether\\assuranceconsolidated\_reserves\_report\_2021-06-30.pdf)](https://tether.to/wp-content/uploads/2021/08/tether\assuranceconsolidated_reserves_report_2021-06-30.pdf) > > ^(\[9.\]) [^(https://decrypt.co/41920/tether-uses-centralized-power-refund-million-usdt)](https://decrypt.co/41920/tether-uses-centralized-power-refund-million-usdt) > > ^(\[10\]) [^(https://cryptopotato.com/tether-freezes-1-7m-in-usdt-stolen-in-yearn-finance-exploit/)](https://cryptopotato.com/tether-freezes-1-7m-in-usdt-stolen-in-yearn-finance-exploit/) ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pz44yg/rcc_cointest_top_10_tether_proarguments_october/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

MedicalFigure7599

Do you think USDC will survive if USDT crashed? Stable coins made the crypto market be more liquid than it ever was. Bad mindset will be to spread FUD in something that is helping crypto reach these heights. Sometimes we have to conpromise for the better good.

GETSOME88-007

They lied before, why’s should we trust them again? Further, even if they didn’t have the assets, would they admit it? Hopefully another LUNA collapse is on the horizon for USDT…….

mvidetto

It was not USDT, it's UST and Bitcoin will bounce back soon in market

D1NK4Life

Ok. I apologize for the insults. I can tell you are trying. Let’s pretend I bought all my Bitcoin with tether. You never touched tether, great. But I gave $100 to bitfinex and they gave me $100 USDT. I then bought $100 worth of Bitcoin with it. Then I turned around and sold it to you. You paid me in USDC. .... this is either the aha moment or I give up...

ILikePracticalGifts

Shit I meant USDT (Tether) lol

XMR_LongBoi

>They are a systemic risk to the crypto ecosystem This is putting it lightly. There is evidence to suggest that tether (presumably printed from thin air) is what initially pumped btc up to 20k in 2017, and that was back when the total market cap of USDT was ~$2b. So yeah, I’m sure at ~$80b it would just be a bump in the road and not a black swan… [[Source]](https://onlinelibrary.wiley.com/doi/full/10.1111/jofi.12903) TLDR: > Rather than demand from cash investors, these patterns are most consistent with the supply-based hypothesis of unbacked digital money inflating cryptocurrency prices. AND: > Overall, our findings provide support for the view that price manipulation can have substantial distortive effects in cryptocurrencies. Prices in this market reflect much more than standard supply/demand and fundamental news. These distortive effects, when unwound, could have a considerable negative impact on cryptocurrency prices.

AnomanderRake42

They could have just liquidated the Bitcoin for straight cash or USDC/USDT, and then started setting a bunch of market buy orders for billions of UST across multiple exchanges. That would clear the order books of lower asks. Obviously just a guess. But while crypto moves fast, humans are slow, and I don’t think they had time to conspire to bail out whales (otherwise, why would he allow Novogratz and CZ to lose money?). It’s just that whales in generalhave a systemic advantage because they pay prior to do this stuff for them.