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Lets say for example that the auditors/regulators has found that USDT Tether has printed tokens out of thin air that are not backed by the fiat $dollars, from there what will happen to USDT on the basis of this news?:

- Is it possible for a stablecoin to crash to 0?

- Will centralised exchanges start delisting USDT in light of this news?

- What will happen to all of the USDT tokens in the millions of user wallets, become worthless?

- Will all decentralised projects smart contracts that used USDT in them be automatically cancelled/void?

For beginners the word Stablecoin sound stable 'no risks'.

What's the best decentralized stablecoin out there where you can earn interest on or stake it?

Otherwise which centralized stablecoin is backed by FDIC or SIPC protection policies?

Well yeah if its not fully backed then a stablecoin could drop to zero.

Most cexes have been pushing its usage so much that they'll probably cover it imo if it falls. (coinbase have been pushing usdc but I think binance would be able to cover it and return the $ equivelant). .

I'd trust dai or usdc at the moment if I had to pick. I haven't seen much that's fully insured much though atm and maybe someone ought to make one and run it like an insurance firm.

Everything is possible.

They will most likely do that and freeze withdrawals (and maybe trades).

What happens if you own something that is now worthless?

No. But some of them may collapse. And many people will most likely get burned in the process. Quite a few DeFis (e.g lending dapps like AAVE and Compound) let you use USDT and other stablecoins as collateral for borrowing other coins/stablecoins.

Stable only means its price isn't varying constantly. What happens if everyone finds out that your dollars aren't actually worth any dollar?

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DAI is also partially backed by USDT and multiple coins (which would most likely drop hard if Tether is confirmed a fraud). Good luck with that.

At least USDC is backed by Coinbase and chances are that they (may) give you 1:1 on your USDC even if the ecossystem collapses.

Okay then, centralised exchanges are the owners of these stablecoins, like Bitfinex owns USDT and Coinbase owns USDC? So if a stablecoin fails then the exchange that issued their stablecoin should fail and collapse too correct?

I see Gemini issued their stablecoin GUSD.

So are we looking at all exchanges issuing their stablecoins and the exchange could break down collapse if their stablecoin fails like a double risk right?

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Isn't DAI stablecoin decentralized?

Okay you say USDC is the most trustworthy?

Lastly can central banks digital currencies CBDC's make stablecoins obsolete?

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You mean like when bitfinex got hacked, lost 33% of all user funds and disappeared...

So the answer is a no to that one. If a coin did drop the exchange might find a way to try to buy back user trust (for example giving tokens or paying in another exchanges token when one falls). But ultimately they'll probably find every reason not to go bankrupt or even lose customers. Your old user base goes in an innovative field? Just wait for more to come through and those who lost everything to be distracted focusing on how they're going to get any money....

Yes, but why would that change anything I said? DAI is 100% collaterized by other assets, including centralized ones (USDT, even though it's just a little). And most coins would crash with it, so chances are that DAI would probably become partialy insolvent.

IMO, yes. USDC, GUSD and PAX (not in this particularly order).

I doubt. Can you put a central bank CBDC on the ETH blockchain?

They could code it to make their CBDC compatible with the ETH blockchain, possible?

Otherwise we will have 2 systems running in parallel that is decentralised crypto like btc, eth and government/central bank CBDC's and governments want their system for everyone and declare war on our current decentralized system.

If this happens, it will not be good for all stable coins and crypto itself. People will lose trust on the market and we can see a big dump in the market where people selling off their stable coins to the fiat. Among all the stable coins USDC is the one which is more regulated but it is also not 100% backed by dollar.

All of what you are asking are affected by one thing: centralization of the cryptocurrency itself.
That is the single point of failure and the characteristic of any centralized altcoin such as these stablecoins is that they can easily be shut down and their value can drop to zero instantly. For example in case some government decided to shut down the company that controls this coin the coin itself would shut down also. That also affects any tokens it has in any other centralized platform such as the smart contract tokens on ETH.

This is why no centralized altcoin has ever been considered "trustworthy" but only "convenient" to use.

This is very unlikely. There has been multiple smear campaigns against bitfinex and tether going on for years. These smear campaigns have resulted in multiple 'runs' on USDT, and to my knowledge, tether has always been able to redeem USDT for dollars.

If what you say were to happen, confidence in the bitcoin and crypto ecosystem would collapse, we would see a crash in the value of all types of coin, and people rushing to get their money back into the fiat ecosystem.

There is not anything preventing any stablecoin from falling to any price, including zero, however sellers will probably not be willing to accept a price far below $1 because stablecoins can be redeemed by their issuers at face value after meeting certain restrictions (such as KYC, and minimum amounts). There are also people willing to arb stablecoins by buying them for less than $1 on an exchange and redeeming them with their issuers.

USDT got the big volume now among those stable coins but we cannot say that we can trust them to the extent that we will hold it for many years since there are possibilities that it will drop in future but for now if you are looking for good stable coin then you can grab that option.  Also BUSD is good option so it's up to you now on which of them will you choose.

The only correct question I would ask anyone who wonders if stablecoins are something trustworthy is to ask themselves if they believe in what actually back them. Often this is actually one big nothing, and digital printing of stablecoin is actually equal to printing fiat money which has reached incredible proportions these days.

But there is one very important difference between having $100 in your wallet and the same amount in stablecoin - this digital version of the coin can be frozen at any time, even if you keep it in a non-custodial wallet. I will say without a doubt that stablecoins are something far more dangerous than fiat and any cryptocurrency - but most people are not really aware of it at all.

@mk4 made a good review on this topic -> Most Stablecoins Can Be Frozen, Even in Your Own Wallets (https://bitcointalk.org/index.php?topic=5204055.0)

Trust? None actually but what if something happens? Which one would be easier to trace or hunt down by the law or SEC? That's centralized stable coins I believe, for a stable coin to even operates with peace of mind the project must be regulated, this is why I prefer stable coins like USDT

Actually none mate. But among stablecoin Id keeping I always used BUSD on Binance as I know CZ cared for those breached and hacked so they will definitely make their security more secure and safe. I heard as well that they have insurance thats why he always say funds are $safu. Anyway just na opinion. But I do have some other stablecoin too. Among it usdt is most untrustworthy as they have some issues before and maybe have one again with sec that needs clarification.

In all sense none of these Stablecoins is 100% safe proof but the one I will say still most trustworthy is DAI and I expect the demand to keep growing in this bull market, the problem with other Stablecoins is that they are centralised and can be default in paying you because they want to, for me you can't do that with DAI or there is no precedence so far and I hope it remain this way

All popular of them are Trustworthy enough, just ignore this pointless fud

In such cases, it is necessary to use decentralized stablecoins, such as DAI. In the near future, another new decentralized stablecoin is expected, which was announced on Twitter by Justin Sun, supported by TRX and BTT. https://twitter.com/justinsuntron/status/1217876471483514880 However the name for this stablecoin has not yet been invented)

Would not fall or crash to 0 but I would wait for drama on stable coins as many of the coins were minted from thin air. You can assume some of them or their amount were pegged with US dollars or gold or any asset but not all of stable coin amount on the market are backed by the same amount of fiat or gold.

If crash happens, it won't bring the price down to 0.

It will be a shock for the crypto market if USDT has a terrible drama like that. Delist will be thing too late after drama but price of USDT will crash before delisting new.

They can be frozen by governments

I see in that link you provided that Dai cant be frozen. Is this still the case and can you confirm Dai is decentralized?

To be honest, there is no stable coins that is 100% safe, many bad things can happen to stable coins. But if we are too scared and dare not take risks,
we will get nothing. In my opinion, of all the stable coins currently circulating, only USDT is the most trusted. I said that because I saw that the demand
for USDT was very high compared to other stable coins. In fact, USDT has long been in the top 3 on coinmarketcap sites, even the volume of USDT
exceeds the volume of Bitcoin. It was enough for me to trust USDT.

Okay no stablecoin is 100% perfect however which is the best and least risky you think?

USDT is the 1st released stablecoin correct? similar to bitcoin being the 1st crypto coin being released over 10 years ago hence USDT has built a bigger customer base you reckon?

Corporation Enron which had the biggest volumes in the energy sector in the stock market back in its day, is big volumes a good indicator of trust?

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Coming back here is Dai the most trustworthy as people saying its decentralized ???

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The couple of years ago media and members of forum talked about overboughted of USDT market. This could be a true, but USDT is till alive to this moment. This may be a sign of stability.

USDC and BUSD for the time.


USDT has these loose ends at the moment, causing a bit uncertainty.. but for keeping it for trading purposes is the ultimate coin

Despite the many controversies surrounding USDT, this is indeed the only more or less reliable stable coin. I looked for other options, but the reputation of the USDT suits me more than the reputation of its analogs. And I regularly use Tether to save my profit.

Every centralized stable coin is at the risk of crashing to zero because it is not fully backed and audited, people simply trust the name and using it to hold their profits. We can't expect these stable coins to stay forever since they are keep printing more tokens in very short time period. If government starts to regulate then USDT maybe the first coin to crash.

DAI is one of the stable coin which is backed by ethereum smart contracts so it is full decentralized and there are some other coins available with low marketcap at the moment.

USDT looks good no doubt about that and although being centralized and no audits or anything like that is done by Tether but still it is one of the best stable coins and that because its the oldest stable coins if my facts are right and it has the highest volume of trading.

Apart from USDT, the next stable coin I trust and actually use at times is BUSD purely because of the trust I have in Binance and I am trading at Binance so if they scam then I cannot do anything at all. I believe there are some better stable coins in the market like the coinbase USDC and others but because of the trading volume and popularity it is USDT that is the winner here.

Yes, it is decentralized which makes it really unique and trust issues are solved mostly but I never used it don't know why but tether looks like the better option for me.

Tether is so famous because like bitcoin is so famous despite better ones out there because they are 1st ones in the market of their own type. Bitcoin was the first crypto and similarly tether was the 1st stable coin which is why they are so popular and almost every trader uses them.

With time, tether will lose its value though because unlike bitcoin, tether is centralized and a lot of risk is there in case some day tether dumps all the coins and runs away.

Okay to confirm my understandings of this thread so far, please correct if I'm wrong:

- USDT, USDC, BUSD and such are centralized stable coins and possibly crash to 0 if regulators find out its not backed by 1:1 with the fiat $dollar?

- DAI is the most reliable stable coin because it is decentralized and backed by Eth smart contracts?

If both statements are true above then that makes Dai the most trustworthy stable coin regardless of volume right?

If tether really did printing USDT from thin air and it caught by the goverment. It will make USDT zero value and whole crypto market will be colapse, many exchange and people suffer losing money. It could be bugger accident then Mt goxx got hacked.

If you can trust stablecoins, the first place goes to Tether... It is chosen by the majority of users, and it has the largest number of trading pairs... And it is just as printed as the dollar, in unlimited quantities! ;D

If Tether is the next Mt. Gox then what is the best preparation for it?

Will decentralized Dai crash to 0 too?

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I understand USDT is good for now, it works well, good volumes, more trading pairs.

However...

I'm looking for a stable coin that is decentralized, trusted and wont crash to 0 when the fed regulators find out scandals with it.

I'm not saying that I know all USDT tokens are not backed by paper dollars as that be a unproven allegation now, but I'm saying I don't want to take a risk if the regulators do find out that all USDT tokens are not backed. 

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Volume doesn't make it automatically trustworthy.

Onecoin had lot of volume back in the day for example.

Just because everybody is using it doesn't give it trust especially if its centralized.

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Sadly, it was proven to be unbacked, and the market act as if nothing happens. Did you read this post? "Attorney General James Ends Virtual Currency Trading Platform Bitfinex’s Illegal Activities in New York" (https://ag.ny.gov/press-release/2021/attorney-general-james-ends-virtual-currency-trading-platform-bitfinexs-illegal)

Agree, we need better stablecoins where users can easily "audit" the vault in real-time. The problem with these stablecoins is that we still need to trust that the vault is not empty.

Can centralized stable coins like USDT be frozen in a wallet remotely from USDT corp office themselves?

Can USDC, BUSD, GUSD be frozen like USDT?

Can Dai be frozen in a wallet?

That is DAI I think, or DAO, not really sure about which one is what to be quite honest, some of them are BNB and some of them are ETH so basically it is a decentralized currency. It takes money from people to back it up, and when there is a crash or anything it uses it automatically to keep it at 1 dollar, I can't really give you the full details because I do not use it honestly so all I know about it is vague terms but I can tell you that some of the smartest people I know have said that it is much better than USDT and have used that instead.

Not because it is perfect, maybe there could be some problems in that one as well, I am sure if I look closely I can find problems with every single coin, even bitcoin is not perfect, but at the same time the only thing we need right now is something better than USDT and that is enough for us and those projects are decentralized and better.

I heard before that USDT office has frozen USDT tokens in wallet remotely.

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Okay if USDT Tether collapses under its scandal then can it bring down USDC and Dai coins too?

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From every indication USDT seems to be the most popular stablecoin coupled with the fact that the market capitalisation is the highest when compared to other stablecoin. But they've been some negative news about the true backup capability of USDT. I'm of the opinion that if looked into carefully every stablecoin doesn't have the exact backup of the amount of stablecoin that is being printed.

when I spend a lot of my time trading on the Binance exchange I use BUSD more than USDT. but when I trade on other exchanges with the tokens I have, I will use more USDT. and I also won't forget to use USDT TRC to make withdrawals to get cheaper fees than I have to use the ERC network.

Even Dai not backed up to?

I use BUSD most of the time. I like to use it especially for its being backed by Binance. But I have also used USDT and I didn't have any problem with it. But I haven't tried another stablecoin except these.

But isn't Binance under investigation now :o ?

By whom? And it doesn't matter, BUSD is backed/controlled by Paxos and not Binance.

DAI is backed by cryptocurrencies through a smartcontract (see MakerDAO).

It will impact them a lot, that's the least I can say. Since all the 3 coins you named are different and not interconnected to each other in any way, so I don't think if one coin scams or anything like that happens it would crash another coin. If USDT collapses then there will be a certain level of distrust and that is what will impact these other stable coins but that would be for some time only. Once the market settles down, there will be a lot of traffic on these other stable coins specially DAI since it's decentralized and people would feel much more secure going with a decentralized stable coin.

I don't think USDT would ever collapse though because they have the biggest volume in terms of trading and they are sitting very solidly in the market so I see no reason why the coin would suddenly collapse unless there is something wrong.

To think that USDT could collapse would be a disaster. Although I think it could not happen because for a reason it is the most used stable coin in the market.

Here is an interesting thread by Caitlin Long, the founder and CEO of Avanti Financial group that alleviates concerns that may arise from the fact that Tether is a stablecoin is not backed 1: 1 by USD and that the most recent events it has suffered bitcoin could lead to further complications.

I particularly liked this argument:

looks like quite a lot of people are using BUSD, maybe because it is under binance. So far, I'm still using USDT. well, I don't trust USDT, but I use it because I'm used to it, and given that USDT is the largest stable of the coins, so I think it's quite safe to use in the short term.

I use binance USD and USDT in most cases, but I've come to realise that most people would rather go for USDT than BUSD. USDT has been in the market for a long time despite the allegations by SEC. The token has the support of several blockchain such as tron, ethereum, binance smart chain etc.

Yes, maybe because BUSD is a useful and stable alternative coin like USDT and but USDT is much better and most people use it and have the largest trading volume on all exchanges and I still use it too.
and as an alternative if the price of Bitcoin or other crypto asset drops suddenly, you can quickly exchange it for USDT as it is today.

Lets say for example that Tether USDT has been found guilty by the judge in a court room in the US or China decides to go after Bitfinex exchange that owns tether and bans Tether on exchanges, pressuring the exchanges to delist tether USDT because they have been legally been convicted in court of printing tether coins out of thin air, not backed by cash $dollars.

Wont this cause a run on Tether USDT where USDT holders will want to cash out their tether for their local fiat currencies? Also wont this cause USDT trading pairs with cryptos to be wiped off exchanges for example there wont be USDT/BTC or USDT/ETH pairs anymore because no seller wants USDT for their BTC etc?

When you say USDT has support from other blockchains such as Tron, Ethereum, BSC, then how do these chains support tether if a judge in a court room finds tether guilty?

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Why is Binance using a 3rd party Paxos for their BUSD stablecoin? If Binance can create Binance smart chain BSC and BNB and all those other financial derivatives on their own Binance platform they why cant they create they own stablecoin managed by themselves  ???

Just to confirm for Dai to collapse then either Ethereum or MakerDAO must collapse 1st or their smart contract ecosystems has vulnerabilities causing a collapse? When I say collapse I mean the blockchain collapsing not the price meaning if Eth or MAkerDAO loses 99% in a bear market then Dai will still be okay?

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USDT which is an amount comparable to fiat money which is solidified like it will be safe, unless fiat money is added to make it back or add to circulation in crypto it could, and will not possibly fall to 0, because many people hold it and believe it to be stable coin.

When you say 'Impact', what do you mean by that term? Do you mean impact the stablecoin market in price like for example instead of $1 USDC and Dai can drop like 50% to 50cents each?

However isnt a stablecoin suppose to be 'Stable at $1' in any market condition hence they are called stablecoins in the 1st place?

If I assume you mean impacting the price then its not a stablecoin because price is not stable right?

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So you saying the whole USDT stablecoin is backed by trust from its holders? So as long there's trust it will still be stable at $1 even though a judge in a courtroom finds USDT Teher guilty? Wil exchanges still trust USDT and not delist it even though they will face legal enforcement from authorities to delist it?


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Because that's not what matters. The important thing is NOT the token, but what and who backs it.

It doesn't matter if they "own" Binance Smart Chain or Binance Chain. They could have also created BUSD themselves on the ETH network, after all, anyone can deploy a smart contract (an ERC20 token in this case).

They are using Paxos because: they are trusted, their business model is about stablecoins, they can handle the audits, the backing, the bank accounts, etc... why do everything themselves when there are companies which can do a better job?

For every 1 DAI in circulation, there is $1 worth of ETH or other crypto backing it, all managed by a smart contract and the liquidators. If ETH suddenly goes to $0, your 1 DAI is suddenly backed by... nothing. Or better, some ETH worth $0.

The same way, if their smart contract is hacked and the ETH is drained, your DAI is worth nothing because the collateral/backing is gone.

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The only reason USDC would be worth less than $1 is if they are not backed. Period. Even if the market suddenly panic sells everything and USDC goes to $0.50 on the exchanges, you could buy them for $0.50 and redeem for $1 on Coinbase.

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In the free market, people pay what they think something is worth. If everyone thinks USDT is backed and worth $1, then people will buy when it goes lower, which keeps the price stable. But if USDT is found to be unbacked, most will panic sell and people will not buy, making the price to tank. And if you can't redeem each one of your USDT for $1, then it's worthless.

Okay so Paxos is responsible for BUSD however is Paxos a US company that offers any FDIC or SIPC protection policies like banks do if anything happens to BUSD?

See: https://www.paxos.com/paxos-standard-terms-conditions/

Is USDC a stablecoin managed by Coinbase themselves? If USDC collapses then wont that collapse the COIN stock share price of Coinbase in the stock market resulting in game over for Coinbase?

If a stablecoin goes to 50cents then its not a stablecoin, it becomes an 'altcoin'. Stablecoin means stable at $1 no matter how bad the market conditions are.

USDC is managed by Circle.

A traditional stablecoin's job is to be minted and redeemed by $1, which is why the market keeps it around $1. You just can NOT guarantee the $1 price because there is a free market, where people buy and people sell all the time. If someone has $1b USDC and market sells it on an exchange, the price will fill all bids and it will drop a lot. But it will most likely go back around $1 because others can arbitrage by buying and redeeming for $1 through Coinbase.

The most trusted and best stablecoin in my opinion is USDT, because USDT is the first stablecoin that appears, and has been integrated with almost all other altcoins, I have never had a problem with USDT, so USDT is certainly very safe

USDT is backed by dollars, dollar-like (such as bank accounts denominated in dollars, treasury notes), and others assets. There is currently approximately $162 million in assets held by tether's USDT accounts in excess of issued tethers.

There is some trust involved that tether will continue to redeem tethers for $1. This is true for all stablecoins.

This is why USDC will not trade substantially below or above $1. The friction to exchange dollars <--> USDC is very low. The friction to move dollars into/out of coinbase is also very low.

The above is also why USDT will generally not deviate from $1. There is a little bit more friction with USDT, but that is only because they market themselves to larger traders, while coinbase markets itself to retail investors.

To me BUSD Has always been the most trustworthy, it has always been a good one that provided me with a good amount of return, I would have to say that it will stay that way. Not because I trust binance so much but because I trust the other ones even less. USDT? That one is owned by a company called Tether in bahamas, do you really think that they are legit people? I mean if they were so legit they would be in a proper nation and not run away to bahamas. USDC? Or any other? All of them are a part of stablecoin group from very little known places or not even properly licensed places.

DAI is a good one because it is decentralized but I have seen too many hacking in the decentralized world right now to trust the code itself. So, that leaves BUSD which is owned by binance, there is no stablecoin that is managed by a bigger or more known or more trustworthy place in the world so that is why I picked it.

Somebody said earlier that BUSD is backed by Paxos not Binance however I don't see any mention of BUSD on their wiki page:

https://en.wikipedia.org/wiki/Paxos_Trust_Company

To be frank, out of all stable coins USDT is the worst. Haven't you seen the news about how USDT is in a long term battle trying to (never actually getting round to it) to prove that USDT is backed by USD??? Here's a link to an article that puts this into perspective: https://www.ft.com/content/529eb4e6-796a-4e81-8064-5967bbe3b4d9

This makes USDT the most untrustworthy stable I ever know. If you do anything, do your best to stay away from USDT, any other stable would do.

Okay lets say USDC is good and have audits to prove that they have $cash in the vaults to back up their USDC's that they printed all managed by Circle.

For example, Lets say from here Circle files for bankruptcy when its shareholders found out they cant pay off their debts from their balance sheet and the share price of this Circle company crashes. From this point will USDC be fine if Circle goes out of business, who manages USDC then? What if circle uses the cash reserves in the vaults that were originally there to back up USDC to pay off their debts, that means USDC is not backed by cash anymore? Finally how will Coinbase come to this rescue as Circle bad reputation can take down Coinbase too because of the USDC ties.

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Yeah it makes sense for FUD against crypto like Bitcoin so whales can get bitcoins cheaper.

But FUD against stablecoins doesn't make sense because who wants to manipulate a stablecoin market for profit  ??? Stablecoins don't get cheaper in any market condition so yeah that FT article is not FUD I guess.

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The article you cited was not very well written. My guess is it one of those "guest writer" similar to what forbes allows, and that often results in shadow paid advertising/shilling.

The chart (https://tether.to/wp-content/uploads/2021/05/tether-march-31-2021-reserves-breakdown.pdf) referenced in the article is regarding all of tether's reserves, not just those of USDT. As such, they need to keep some of their reserves in gold to cover the XAUT they issue.

About 76% of tether's total reserves are in cash equivalents or things that money market funds will hold. There is an additional 12.5% that is backed by secured loans, while this is not as good as cash, it should be reasonable to believe the loans will be repaid on schedule based on their security. The risk for the secured loans is that >76% of tethers will be redeemed prior to the secured loans maturing....based on tether's history, this seems unlikely. About 10% is in "corporate bonds, funds and precious metals", some of this is what backs the XAUT tether has issued, and some of it will be bonds that have too long a maturity to be considered "cash equilvent".

Overall, I would consider any money stored in USDT to be safe.

USDT is a centralized coin. I believe it can be trusted because usdt is long enough as a stable coin that can be trusted, I believe many people have transacted even tens of millions of dollars safely using USDT.

If USDT or Stablecoins do not represent the equivalent value of USD, then Coinmarketcap has been providing incorrect information about Stablecoins so far. If USDT prints the number of coins but they don't have the fiat equivalent of the USDT they printed, then there is a possibility that USDT will drop, because they will not be able to accommodate the number of existing assets if other crypto users withdraw their assets from the exchange. And this is what crypto users have been wary of all along.

Centralized actually also cannot be used as a strong reason to make a stable token trustworthy or not. Humans can only choose partners, with whom they work together to store digital assets.
Our level of confidence in Yobit compared to our level of confidence in Binance can serve as an easy example in the case we are discussing.
We all agree that Binance is safer and better than Yobit, which is why many people use Binance's services to do business.

The point is, no matter which centralized party releases the stablecoins, the most important thing to consider is how skilled the company is in managing the stablecoins.


So do you think the USDT has been handled by a specialist?

Tether (USDT) is at the 3rd place among all the cryptocurrencies according to Coinmarketcap data. I also think that it is one of the most credible stablecoins. But I feel myself a little closer to BUSD to be honest. Its being backed by Binance helps me trust it the most.

What can we learn from the Iron Finance stable coin scam?

Even Billionaire Mark Cuban fell for this.

Is Iron Finance stable coin is a De-Fi decentralized coin like what Dai is?

If so how come something labelled as decentralized turn out to be a scam as we though its only possible for all scams to come from centralized entities  ??? 

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Hi coming back here we like to know what if the SEC stance/regulations on stable coins in the upcoming weeks is negative, Can the SEC cause centralized stable coins like USDC to collapse because USDC is based in the USA where they are within USA jurisdiction law and must comply with SEC right?

What about other centralized coins like USDT tether and Binance BUSD and more that are not based in the USA and located in china/asia/east? Can the possible upcoming SEC regulatory negative stance affect these stable coins too, can the SEC have the legal power to go after these that are not based in the USA?

Finally what about decentralized stable coin Dai from MakerDao, if the SEC rules out and say MakerDao is a illegal unregistered security then will this collapse Dai to $0 even though its decentralized? The project team that created MakerDao, where are they based?

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I don't know about what stablecoin would be the most credible. But the stablecoins that I trust the most are like this:

- BUSD
- USDT
- USDC

I use BUSD and USDT mostly in the recent times. And my reason to use a stablecoin is to keep some money into it when I don't want to invest into any cryptocurrency. I use the money for stablecoin staking mostly. Maybe it doesn't make me earn a lot of money but it is better than just staying at the same level.  ;D

For me BUSD, USDT is okay to use and these are trustworthy. In my view, these won't go back to 0 because the reason of stablecoin. Many people are using these for a long time. It may up or down a little amount of price but as stable coin, BUSD, USDT are good enough.

Only a few looks to DAI. But you should guys use it as it is the decentralized stable coins in the market. While most that are very popular today, they're centralized.
Owned by an exchange.

I think that if auditors found that USDT Tether has printed tokens out of thin air that are not backed by the fiat dollars, it will definitely crashed, as everything is relies on trust, so if people don't believe in something, it will depreciate, so all holders of Tether will have a lot of unnecessary candy wrappers, so it is also possible for Tether to crash to 0.

I think DAI is the most trustworthy stablecoin just because its being used a lot in most DeFi Application or Platforms.

Getting mixed responses in this thread saying USDT Tether is a scam or Tether is trustworthy otherwise why most people use it then  ???

Let me remind you guys a purpose of a stablecoin is to be always stable at $1 at 100% of the time except for black swan events when the price of a stablecoin may increase or decrease by up to 5% but still comes back to $1 stable price.

However if stablecoins crashes below 90 cents for more than a day then its a no longer classed as a stablecoin and this stablecoin will collapse to $0 as trust in its stability has been lost  :o

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So you think the SEC will bring a case against Tether like they did with ripple however the case against ripple hasn't crashed xrp to $0 because the case is still ongoing nearly a year now with no judgement from the judge in court yet.

How can the SEC bring a case against Tether when Tether is based in China out of the USA jurisdiction law? Even if somehow the SEC has launched a case against Tether then will the price still remain stable at $1 until the judge gives judgment against it which may take a year or longer depending the complexity of the legal case like ripple.


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If only for these two things, then DAI can still be beaten by other stablecoins in the cryptocurrency space, such as USDT, USDC and BUSD, because the three of them still have a better rating than DAI, which makes some people still tend to trust the three coins more than DAI.

But the SEC is going against UniSwap a Decentralized exchange now. How is this possible when it suppose to be decentralized that is no headquarters or office of operations that can be targeted by the SEC?

On that note above what about decentralized stable coin Dai from MakerDao, if the SEC rules out and say MakerDao is a illegal unregistered security then will this collapse Dai to $0 even though its decentralized? The project team that created MakerDao, where are they based?

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Coming back onto the stable coins is another purpose of them is if you hold them then no KYC is required because stable coins are not fiat currency. If you hold fiat currency the exchange might lock your account until you complete KYC. This happened to 1000s of traders on exchanges until stable coins came to remove this inconvenience because old existing regulations say no KYC is required on stable coins.

However... If the upcoming SEC new crypto regulation states if KYC is also required on stable coins then what's the point of stable coins as we might as well go back to fiat currency if we are all required to complete KYC.

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Is TerraUSD UST truly decentralized and if so is better than Dai?

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I think both USDC and BUSD are great alternatives to the USDT and offer more  transparency than the latter.

Do you think BUSD will get caught up in that Chinese Evergrande Contagion?

Why don't the Chinese come up with their own Stable coin denominated in their own currency instead of using dollars? Why always they choose £USD for their stablecoins? Im sure chinese exchanges like binance can offer trading pairs in their own chinese currency right? So anything happens in China wont take down the crypto market too :o

On tv news they saying Evergrande has $300 billion in debt too big to fail.

USDT has over $60 billion market cap not 100% backed by cash, is this too big to fail too for the crypto market?

If the chinese ccp government wont bail out evergrande then theres no chance in hell they will bail out USDT Teher  :o

It is highly unlikely that this kind of news or policy gets released, however if it does there isn't really any stablecoin that i can trust because most of them are centralized in nature and anything centralized lacks full transparency DIA is a good alternative though due to its decentralized nature

LUSD，Decentralized stable currency.

All in all, I like and trust decentralized exchanges and wallets, and naturally trust decentralized tokens.

Depends, DAI was more used by crypto community and sometimes developers too and it's also offering maker protocol where everyone can produce their own DAI through collateralized some major crypto so it's offer more transparent reserve but even like that i'm not saying other Stable Coin was bad like USDT, USD, etc. It's depends on the user need but mostly they are all same so it's about their own choice.

I have not and never heard of this LUSD stable cryptocurrency. From what exchange or platform this came from?
I have used different stable coins like USDT and BUSD but really never heard of what you said.

Perhaps I will begin to look in the way of DAI now that a lot of users are mentioning it. I'm a USDT person and I haven't had any issues using it despite the skepticism a lot of people have shown towards it. I will go for it even against BUSD except where I'm restricted to the Binance pair. Maybe my trust in USDT could be that was what I started with it and it was the viable option there was when the whole tether thing started. Honestly, come to think of it, it would be a sure disaster if USDT should hit a brick wall and then goes down to zero. I can't even imagine that happening.

same here its also my first time to hear such stable coin but according to cmc it was a LUSD is the USD-pegged stablecoin used to pay out loans on the Liquity protocol
,  more info here : https://coinmarketcap.com/currencies/liquity-usd/

the coin can be found in uniswap v3 , 0xprotocol , 1inch , sushiswap , and  balancer . this stable coin has its own advantage over the other stable coins because it is decentralized and can be more trusthworthy compare to centralized stable coins .

All stablecoins suppose to function the same that is be stable. So when you say at the end depends of the user needs/taste and comes down to their choice. Stablecoins are all the same flavour so its not like I walk into mcdonalds and choose what what flavour milkshake I want because a chocolate milkshake is different to a strawberry milkshake.

All stablecoins are the same, the same flavour, the same stability but the choice should only come down to which one one is the most trustworthy that this thread is trying to find out.

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Tether USDT collapsing will be like the Evergrande of Crypto unless the Chinese CCP or Hong Kong Government bails them out  :o

If Crypto gets bailed out by a Government/Central bank that that would be really embarrassing for Crypto because Crypto is suppose to be independent of the old legacy financial system. What's the point of Crypto then if this happens?

Stable coins are liquid so what do you mean when you say you have no issues with USDT when using it? There's suppose to be no issues with any stable coin because they are stable/liquid unless the stable coin is centralized meaning they can freeze your stable coin wallet.

All stable coins will work fine until trust is lost in them so this thread is to find the most trustworthy one.

Do you think the Federal Reserve bank will adopt one of the stable coins for their upcoming CBDC's or create their own? If they adopt a existing stable coin then which one you think this will be as this will indicate the last stable coin standing. Obviously they will adopt a centralized stable coin not a decentralized one but decentralized stable coin can still exist and be like the BitTorrent stablecoin of the internet.

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There's 1 question I always like to ask.

Why centralized stable coin issuers based outside the USA always peg their stable coin to the $dollar instead of their own foreign currency?

I understand $dollar is the world reserve currency and the most popular currency pair in Forex but centralized stable coin issuers outside the USA bring more toxic risk to the whole crypto market if that issuer screws up because they pegged it to the $dollar that may not be backed up by real $dollars you know what I mean.

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There are sever stable coin in the market which are very much renowned among them i especially corroborate USDT. Tether is a blockchain-based digital asset, pegged to the US dollar, so 1 USDT is always equal to $1. Exceptionally popular and low risk it works to keep crypto valuations stable and remains the largest, most secure and most widely used stablecoin. So according to my opinion USDT tether is the best stable coin in the crypto market.

According to this link Tether has been fined $41million last week for lying :o :

https://www.bloomberg.com/news/articles/2021-10-15/tether-bitfinex-to-pay-fines-totaling-42-5-million-cftc-says

All those posts in this thread that favoured USDT tether, what is your stance on tether now?

Can tether print $41 million out of thin air to pay the fine?

We understand the courts and judges in the legal system are greedy and just want more money via from fines and don't give a f*** about the overall stability of the crypto market ::) That's the SEC and FATF job to take care of the crypto market.

Paying this fine ends the tether FUD? or the SEC or FATF can open up their own case against tether in the future?

I am a little bit confused here because I think that all stable coins are reliable.
But in fact, many people are not thinking like this.
And I commonly only use USDT and BUSD to ease transactions on exchanges. And then will convert it to BIDR.
But, I am actually quite worried about the problem faced by USDT, this has been a long time but still becomes like this.
However, what will exactly happen next?
If something happens to USDT, it means that we need to convert our USDT to other stable coins or cryptocurrencies, right?
Because the value of USDT is quite similar to other stale coins.

There isn't any serious allegation that tether ever printed money out of thin air. The reason why tether had to pay the fine was that instead of keeping money it received from people buying tethers in a bank account, tether used the money it received from the sale of tethers to purchase things such as treasury bills and other safe bonds.

When someone buys tethers from tether, they generally do not intend to simply hold tethers, it is more likely for them to have the intention of using those tethers to purchase bitcoin or other cryptos. So I would expect the price of bitcoin to go up when tether issues large amounts of tethers. This is not unlike how I would anticipate the price of bitcoin to go up when people deposit large amounts of cash into their coinbase accounts, except amounts being deposited into coinbase accounts are not public, while the sale of tethers is public.

The other reason people hold tethers because that want stable price to avoid volatility in the crypto market. So a person will sell crypto for tethers for price stability especially before a bear market so its not just used for buying cryptos.

Is tether holding safe government bonds or high risk junk bonds?

What you wrote is obvious, but stable coins also have other very important function.
When you sell cryptocurrencies and exchange them for fiats, in many countries you are obliged to settle each such transaction with the tax office.
Stable coins, despite the fact that they are the equivalent of fiats, are still a cryptocurrency, so transactions made on them do not have to be reported. This must be reported to the tax office only when you exchange from stable coin to fiat.
This is a great help for someone who does a lot of transactions.

Anything could be possible as all the currently existing stablecoins are centralized one and when any problem occurs then we cannot expect things to go as smooth as what we have right now. We do see many corporate are getting bankrupted for some reasons hence how we could expect those centralized will stay out of problems. So, stablecoins may get crashed to zero for any reason and then all your other three points may happen as a consequences to that.

Could you please link me on what is FDIC/SIPC. I just checked on google but I guess I must need some time to understand these better. Hope one day there will be a stablecoin by satisfying all these and in decentralized environment.

In my opinion if the stable coins are not backed by fiat dollars then possible it will crash to zero. The centralized exchanges will delists the stable coins for sure and it will become worthless in your wallet. So stick the popular stable coins like USDT, BUSD and DAI these are trusted stable coins.

You don't get it, most stablecoins in the market right now of course state that they're backed by USD. Whatever what they said is true or how much truth in that will have to be seen in the future. All I know is USDT used to get crashed to less than 1 USD per 1 USDT. That means something like stablecoins could well over the idea of stability.

A stable currency is a very important ingredient for the market.  In keeping with the best considerations with criteria such as reserve transparency, volatility, velocity, ownership, Tether still accounts for the absolute majority.  Also, a lot of impressions in usdc, Busd, Tusd Although I fear there will be a big change in the stable direction of the coins in the near future.

All stable coins currently have a hard lock rate.  If the case does not lock, there is a greater chance of compliance.

I think anything can happen


This is very unlikely because USDT is one of the popular coins used and traded by many people, they benefit from major withdrawals so I think this is not. And I think stable coin is one of the important coins to trade in the market. Can't cancel if canceled, it's hard for us to have better similar options.

Not backup with any government, stablecoin only based its value from the US dollar.

You need to make sure that you fully understand how this fiat reperesentative works inside crypto, There are many now to choose
with almost the same concepts but being introduce by different teams.

Make your assessment before choosing which stable coin to use if you wanted to avoid losing the value of your crypto during the dumped.

I don't know about trustworthy because one of the biggest stablecoins we have in the industry is tether and it has a sketchy past which which might drag it into the not trust worthy coins but it still remains to be the biggest and most probably the most popular unless you decide to use tether based on other blockchains like the tron chain. And unfortunately am not so much of a stablecoin person so I have stuck to tether the original  stablecoin.

You're not only as many people in crypto also know about the shady past of USDT but still using it because it was the biggest fish of stable coins, for now. This is not a bad move as safety in number but still, I think people like you should also start to branch out to other trustworthy stable coins like BUSD because as always, never put all eggs in the same basket.

There are so many stablecoin in crypto industry. Among them the most popular stablecoin is USDT, BUSD, DAI etc. USDT and BUSD are centralized stablecoin. But DAI is a Decentralized stablecoin. So i think DAI is the most trustworthy stablecoin.

I was referring to when someone buys tethers using actual dollars. These people are intending on buying either bitcoin or another cryptocurrency at the time they buy the tethers.
I don't think there is any evidence tether is holding any junk bonds. I understand they are holding some corporate paper, as is common for money market funds.

Centralised stable coins like tether USDT and USDC and such might be required by the upcoming SEC or FATF new crypto regulations to report all transactions to the tax office. Also KYC/AML regulations might come onto centralized stable coins too.

I heard that tether frozen somebody's usdt wallet, meaning tether is obviously centralized. If a employee in a tether office can do this then the employee can report all transactions to the tax office or face risking more fines.

If that happens then what's the advantages of holding centralized stable coins over fiat currencies then apart from higher yields?

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What is a hard lock rate?

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I agree centralized exchanges make a lot money in stable coin trading pair fees so if centralized exchange is pressured to delist a centralized stable coin or stable coin crashes to 0 then that cex will lose money and go bankrupt and all the trading volume they had will go onto decentralized exchanges.

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Using tether USDT on Tron is much cheaper fees but what do you mean when you say unless you decide to use tether on tron blockchain?

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You think Yay games will be the Fortnite, Roblox, Minecraft of Crypto being popular and alive for years like games?

Lets stick to the topic and that is stable coins.

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Okay I like to know more info on Algorithmic Stable Coin UST by Terra and compare it to decentralized Dai:

According to DeFi Pulse Maker for Dai is ranked number 2 on the Ethereum blockchain:

https://defipulse.com/

Ethereum is a established blockchain with lots of nodes making it decentralized.

Terra sounds good however how does the Terra blockchain compare to Ethereum blockchain? Is Terra blockchain decentralized with lots of nodes scattered around the world?

Terra is a new blockchain compared to Ethereum and hence its high risk you know what I mean. Last month the Solana blockchain went offline for hours indicating its not truly decentralized. I cant imagine Ethereum going offline for hours you know what I mean.

How many validators or nodes does the terra blockchain has? What if lenders pull their Terra Luna out of the staking pool after all luna is depleted and the demand for UST goes up?

What if demand for both LUNA and UST goes up at the same time or down at the same time then how its algorithm will work then?

Terra has a maxed fixed supply of 1 Billion.

If UST can be exported to other blockchains like Solana then lets say the Terra chain gets hacked, then will my UST still be safe on the Solana chain?


Lastly is Dai truly decentralized because I keep hearing people saying it uses some USDC to back it up? Confused how does a decentralize Dai use a centralized stable coin like USDC to back Dai up ??? How is a smart contract, de-fi protocol be compatible with a centralized asset?

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