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We know that USDT is coming back from the most horrific situations from the past. But I want you to answer this, what do you do if someday without any signs USDT falls back to 0.1-0.2$? What do you do? Can you survive in this situation? What do you do if you put all your assets in USDT?

Just curious to know your answer. Don't say reasons that it won't happens, because I want to know if something this kind of thing happens in future what will you do?

If you ask my replay to this, I can say I will ok with it. Because I put my 20% into USDT right now. Why? because you know guys there is an Old saying Never put your all eggs in the same basket.  ;)

The thing is, one shouldn't put all of their assets in USDT, it might be called a stable coin but it can be depegged and people hodling it will lose all of their money. USDT should held for only for a short time and afterwards it is much safer to either liquidate it to fiat or convert it to cryptocurrency that you have some control over, like Bitcoin.
Of course it is something that can happen, other stable coins have been depegged in the past, and it can definitely happen to USDT in the future. As for what i'd do, i don't hodl USDT like i said already and i don't think it is safe for one to hodl it for too long.

For me, USD serves as a transitional currency between fiat money and cryptocurrencies. I really don't see any compelling reason to hold a significant part of my portfolio in USDT or any other so-called stablecoin. Wouldn't fiat be a safer option in that case?

These are the things that we cannot control and the only way to survive is to deal with it. Diversification is indeed a key for you to be more safe but if USDT will reach that level again, I’m sure there will be panic and the market will go down again since USDT seems to be the basis of many. The market is unpredictable, you can also include the pressure from the government so if this will happen, just be ready for it.

Of course it will put a dent on the market, as we all know stable coins are pegged 1:1 and we used it as hedge when the price is going down. And if the price of USDT is not pegged then it's going to be a concern for us as it will be very negative for investors. Not saying that the market will collapse, but there is a huge repercussions.


So are you ok losing value when it goes like 1 USDT to .098$?

Obviously, your 20% is going down in value as well. And one more thing, USDT is not crypto that is used for investment, so your saying is not applicable here.

One thing I know is crypto market won't stay down forever. I know Bitcoin price will drop alongside many other alternative currencies, but it will rise back up again. Most of my holdings are in Bitcoin are not USDT

I only have USDT in my derivatives trading account. Probably around only 10%. So I believe I will survive that catastrophe.

Funny thing is that those USDT:s would probably be in a safer position then your other cryptos. As if USDT falls, everything falls like a rock. Bitcoin might be only coin that doesn't care that much, but everything else would be a in pure chaos.

You would eventually get paid for your USDT:s because law would be on your side, but everything else you had would be dropping like flies in the charts, and i doubt we would see new bull run in a long time.

Could i survive it? At the moment yes as i don't have that much in cryptos anyway. But i doubt that whole cryptocurrency scene would do that well as this would be worst thing to overall trust that's ever happened.

I can't do anything except for the Tether team to return the price of USDT to 1 dollar again through the reserves they have, USDT has been depegged many times in the past, and its price fell from the price of 1:1, but this did not continue, and the price of USDT returned again. if this happens again in the future, all I will do is wait patiently. It is a big mistake to rush and sell what I have in USDT at the time of the catastrophe of the price collapse and the dollar depeg.

Frankly, I agree entirely with you. Diversifying stable coins is an excellent decision. It is worth mentioning that CZ Binance resembles Tether as a black box due to the risks that arise around it, that it lacks transparency because an audit report has not been submitted about it yet, and that his team is in the process of establishing an algorithmic stablecoin and supports more new stablecoins to determine what will survive organizational matters.

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I have experienced this before with UST when the Terra Luna crash happened. I had some UST deposited into anchor protocol from the juicy rewards but I couldn't sell immediately because there was an unstaking period so I ended up losing money from a token that was supposed to be stable at all time. I learnt my lesson and let my greed take control. With USDT right now, I'm playing it more careful. It has to be a piece of everything at this point.

- USDT: Centralized and depegged a few times but always returned to peg. Sketchy team.

- USDC: Have had huge controversy this year and depegged a lot.
- DAI: Decentralized but DeFi is still riskkkyyy.

If USDT goes, another stablecoin will take its place. Stablecoins are something that is necessary in this market and there's already a big competition in this field. Whichever firm actually issues a 1:1 backed stablecoin and publishes it with live proof, they are more reliable. While stablecoins were just emerging, there were groups that wanted to take advantage of it, but people have become more cautious after recent scams.
Don't fully rely on stablecoins, but choose only the best when using them in times of need. I also hold some USDT but the amount is nothing in my whole portfolio.

It has a huge share to the trades that are happening in the entire crypto market so one that will be affected is the price of Bitcoin.

Aside from that, I've seen some weak stable coins that have dropped down in value and they never recovered. Maybe for Tether if it will fall, the recovery will be different.

Who knows? But I am not curious to wait and see it happens because IMHO that it will create a domino impact to the market.

At that point whatever amount of money you invested in that coin will be lost for the most part and there is nothing you can do about it, USDT is the stable coin with the most volume and such a catastrophic fall will destroy all the confidence in it and it will affect the market of stable coins and the market in general as well.

So unless you were ready to sell all your coins and get fiat in return then you will suffer some losses, even if you did not held any USDT, now how likely is for that scenario to happen? No one knows, but I would not call it impossible as I think the governments are going to begin to attack stable coins with everything they have so they can try to force people to adopt CBDCs.

Well, the market would crash and perhaps BTC would be really close to $10k after that. I find it interesting that you're investing in USDT. I mean, it's a stablecoin, you're not gonna get anything from it. But if you just want a part of your portfolio to be safe and stable that's fine. Everyone has different strategies and goals.

If the USDT falls down then there's nothing you can do because you can't control its price. If USDT falls then there will be another stable coin to take its place. As you can see, there are more than one stable coins and as of now, USDT is what people used when they want a coin that is stable for some reason. I don't think that USDT will fall or even the price decrease and there are lots of trades going on the market.

The situation will be much worse than UST (Terra USD). If you have savings in USDT, you should convert them to dollars (paper currency) or BTC for security. You should only have limited stock in USDT for trading purpose. Because if the de-pegging of USDT happened, it will create havoc in the market as it has a market cap of $84 Billion. 

These days you don’t really have that many options. Besides keeping USD on your exchange which is real fiat and not a stable coin you are having to deal with counterparty risk.

So your options are USDT and USDC pretty much. Since DAI is mostly USDC and BUSD no longer mints and TUSD and the rest seem way too risky to use at the moment. So just split your stablecoins across Tether and USDC.

USDT at 0.1-0.2$? That would be, like, a crazy thing to happen, right? But since you raised the question, here is my response: No way would I convert all my money into USDT. Thats just foolishness, and I prefer to avoid danger whenever possible.

Surviving that condition would be like finding a needle in a haystack without the haystack. Still, I'd be doing everything I could to keep my head above water, and I might even rethink my investment strategy and look into gold or vintage goods. Diversifying your portfolio at any time is always a good idea. You know the old adage: "Never put all your eggs in one basket." Just like you said, and I agree with you, 100% or maybe even 110%.

I disagree here. If USDT goes down to 0.20 or 0.10, then this means that there would be serious problems with that equation. If Tether goes bankrupt but investors really can expect to be paid out eventually, the peg would fail but most likely the dump would stop somewhere near 0.50 or even 0.70. People would prefer to wait 5 years and get full value, than to get less than 50% now.

Even as MtGox had terminally collapsed, the "MtGox coins" still were around 50% worth from the original value, as far as I remember -- because the investors knew that they could expect to get at least something back, and this happened finally.

Big altcoins, and of course Bitcoin -- like you already wrote -- should drop also in the case of an USDT catastrophic peg fail, but probably mid-term not more than 50%. A panic dump of 70% or so could happen, but would be recovering as a new leading stablecoin emerges.


It's likely that what you write won't be far from reality - I also expect a massive altcoin drop if USDT's peg fails catastrophically. But it would be somewhat paradoxical: Cryptocurrencies have been created to cut out all middlemen of finance. A centrally managed cryptocurrency would have collapsed, which means that there were some middlemen involved. Thus "middlemen" would have pulled down the "no-middlemen" finance concept ...

Due to this, I expect that Bitcoin would be strengthened mid/long term, but centrally managed cryptocurrencies and stablecoins would probably lose a lot of trust. I expect Bitcoin Dominance in this event to go again up to 70 or 80%.

If USDT suddenly crashes like UST, it will have a huge effect on the market as USDT occupies a large part of the market. And many may suffer greatly.  USDT is trusted by many people and many hold huge money through usdt. If i say my personal thing i use usdt but don't hold all my money in usdt.  I hold about 2-5% of my total assets in crypto and  keep 25-30% of that in USDT from this budget  and rest is other coins.  So even if USDT crashes, I have no chance of major losses.

Yooooooo, this makes me scared and opens a new way to think. I thought it will be stable. I think I should also move some USDT to other assets or investments. Thanks for making this kind of post here. It's truly helpful for newbies like us  :)

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Still can't forget with suddenly crashes from USTC stable coins with Terra Luna network until right now because my position staking that stable coins and loss almost 30%, for the future have been selective when staking or holding stable coins due many kinds network launch their stable coins. I think most trusted stable coins are USDT and BUSD with Binance exchange back up and not interested with holding other kinds of stable coins worry will follow what happen on UST.

Not recommended hold assets in USDT or other stable coins because not profitable yet than holding altcoin or bitcoin, I think with low profit earn as short or long term holding better put our assets in Bitcoin and hold few percent in Stable coins.

I will do nothing, although the option of such a fall is extremely low and unlikely. It's like speculating what we will do if bitcoin falls to 100 bucks. If USDT or bitcoin falls to such low values instantly, there is nothing you can do anyway and you will have to accept the current reality. The collapse of USDT will pull the entire crypto industry with it, as there are very large capitals in cryptocurrency, they are unlikely to allow this to happen, so that the main stablecoin of the crypto industry will lose 90% of its value.

Afaik, USDT still doesn’t suffer any horrific events before because the only time they suffer a noticeable depeg is during the time when USDC depeg significantly due to the banks storing their reserves encounter some issue. But USDT on the other hand doesn’t have any direct issue aside from the old criticism to them for not being transparent.

Their recent issue might be the first time for them to encounter a serious problem but crypto market will surely recover quickly since there’s a lot of stable coin available as alternative.

I've never really put all my coins into USDT in the first place so I don't think it'd affect me much. I just use it as a transition sometimes and as a method of transfer if needed. That's concerning USDT though. I fear that if it ever actually drops to such low levels, it isn't just USDT that will be affected, the entire market would probably crash down like a snowball, and my other altcoins (maybe even Bitcoin) would experience quite a drastic drop.

I'd definitely survive it though, my money on crypto isn't what I consider as savings in the first place. It's not that big of an amount as well, I can probably work my ass for a few months to get it all back, unless ofc the coins I invested go up.

The era of FUD on USDT for me is already done.
It's already 2023 and I will not see any FUD about the USDT depeg.

But let's just answer OP of the "what if"

My answer is the market will crash, extremely crash including Bitcoin and other altcoins.
After that, even other stablecoins for sure will get affected even USDT will only, it's because of fear that other stablecoins could be also depeg because the highest market cap stablecoin and the first stablecoin crashed.
After that, Bitcoin will recover just nothing happens as Bitcoin doesn't need stablecoin at all.

LOL, that's easy money for you guys who are content creators there.

I agree that all of the bad news against it has already been defunct and that they've got a reserve fund or proved that they've got really that amount backing up the supply.

What is more likely is the other stable coins that can depegged. That's still possible and many of them could go out to the market when the bull run arrives. Tron network has just launched that type of stable coin and that's why it's another ugly impression and project done on it by its developers.

It won't happen because... :D JK
What will I do? None.

I saw UST (Terra Luna's Stablecoin) got de-pegged a few months ago because of a glitch that caused their token, and their stable coin to lost it's value. With what, it just shows that any stable coin might suffer the same thing as well, and no stable coin is safe even USDT. Tether might've dodge some problems, and solved it in the past, but I believe that there will be a time where there might be an event, or problem with it that might cause the stable coin to de-pegged to the US dollar.

Having said all of that, I will not do anything because I don't have any plans on touching any stable coins or holding it in mid to long term.

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If USDT crashes somewhere then I will lose all my money. Because I keep all my money in USDT. But now I thought I will invest the money in different places so that if any coin ever crashes then all the money will not be lost.USDT is reliable to me that's why I like to keep money in USDT. But if USDT ever crashes crypto market will suffer huge loss. It may take years to recover from this loss. Hope to see something like that No, we still need to take some precautions so that our money is safe in case of such an incident.

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If USDT were to crash it would be catastrophic to the crypto space. Their team (company or whatever) would likely have to start mass selling off assets to try and keep the peg to the dollar alive. As long as they don’t do anything shady though and they have the assets they do, a run that broke the peg and allowed them to buy back USDT below $1 would be quite beneficial to them.

Obviously you’re right to never put all your eggs in one basket but USDT is solid, I firmly believe that they are OK. There has been several audits & they continue to be trustworthy. Obviously you can never be 100% sure about anything but I think USDT is safe.

Why are you holding all your money in USDT? I mean, it's a stablecoin, that's an interesting choice to say the last. But I'm not judging.

Some days ago USDT price falls little with doller pig to 0.99 according to coinmarkecap and yes this true that USDT was fall in past and possible also in future as usdt has no backup this time despite of large volume. If this happen whenever then there is no way to do except passion and hold it until it goes back to original price. If I sell in down price then obviously it will give me only loss and i will not loss until i sell it.

Some months when usdc and Di was down then my friend sold at 0.9$ but after some days the price back to original price. by the way people love to hold btc instead of usdt and i am also holding very less usdt so no problem if this could happen ever

The best thing is to divide the stablecoin portfolio into USDT, USDC, BUSD, and DAI.

Eg:  If your total stable pool is X, you can store the stable coins like this. This will reduce the risk of the stable portfolio.

USDT = X/4
USDC = X/4
BUSD = X/4
DAI   = X/4

It surely can happen since there are supposed to be stable coin drop its price due to Luna crash incident happen before see this link https://www.coindesk.com/learn/the-fall-of-terra-a-timeline-of-the-meteoric-rise-and-crash-of-ust-and-luna/

The incident could happen to USDT to if there big anomaly or controversy will happen unto it. So if you are worried about same situation might happen then don't hold that to much like letting it sleep for years. Since we know crypto is prone from any hacks or government created issue so if worried about such thing don't hold any amount which you can't afford to lose.

I see many money-making sites that are using USDT as main coin for that. In that reason it will be very stable for many months ,it will go higher than today.

Comparing to others altcoins ,yes, it does not have long high rising value but it has gained consistancy. That is big plus for USDT. No falling down.

What do you mean by money making sites? You are obviously off topic and I don't  know what is the thing that will go higher. Usdt?

If USDT falls into .1-.2 price range, I'm pretty sure that a market crash will follow as we had saw from the past. Remember LUNA crash along with it's stable coin UST, a huge market crash was the result of UST depegged. I strongly believe that it can happen if a major stable coin such as USDT happen to have the same fate as UST.

Let's say it will happen.
It's actually a difficult question when you are in the moment. Using other altcoins that fell down could be a good example.
Anyway, if it does happen, I won't sell. Why? How much money is gone if you sell? I'd rather patiently wait for it to recover because I think that it could happen considering the rule of 1:1.
There must be a plan from the owners of it to bring it back to where it should be. Selling will be suicide, I'd take the risk all the way and just help out at putting the value up by marketing it.

No wise investor will put all assets in one portfolio no matter how stable they are,  there is no doubt the fact that many cryptocurrencies inventor leave their asset in USDT which seems to be the most stable coin and popularly traded,  this has made USDT the most chosen for balance holding but more also this is a good wake up call to many who chose to hold all or higher percentages of their balance in USDT.

But still, be it that expect nothing and only hold an amount of currency you can afford to lose at some point.

Since I am in business, I usually don't have money sitting on my hands for a very long time, and I also accept Bitcoin for payment at my shop, so I do keep a lot of money safe on Bitcoin and also have a small investment I am making else where.  Let me just say that every month I usually have budgeted money, which I spend on personal needs until the next month when I make another budget. I know that for those who usually keep all their money in fiat, they will be affected if faced with this situation, because at that moment the value of their finances will reduce, and if they have really had any plan for what to do with the money, it definitely will not be able to solve all the problems they wish to solve with it. It's wise not to keep all money in fiat in case of devaluation, so the person will not be greatly affected. Rather than keeping money in the banks, it will do one more good to acquire some assets that can appreciate in value instead of depreciating.

Imagine a situation where you own an altcoin that has started its decline and its further position on the market will only get worse until it finally disappears due to delisting from all platforms. Selling such coins will not look so suicidal. When you say that you should wait, take into account the fact that 99% do not return to their former price levels. Never.

op definitely gave an instructive post chara newbies definitely don't know about this they might think there is no harm in keeping their money in USDT. So maybe many people will want to keep their money in USDT for a long time. If a new user reads the op post, their opinion will definitely change. My personal opinion is that I would never want to hold all my wealth in USDT for a long time, withdrawing USDT money and investing in something else and keeping some money in USDT. These are things that we cannot control so it would be wise for us to keep USDT for a while and invest the money elsewhere.

This is true but we letting it be like that is the worst thing about it. I mean we are talking about a situation where we let the USDT consume all of crypto world all that much that if it ever crashed then the whole crypto world may crash with it a lot.

We could end up recovering afterwards, but it will take a long time to do that. They literally have our money in safe places but that "safe" place is still government controlled, the moment government decides to seize their money, that means government actually seizes our money and that means bitcoin will crash like hell, even if USDT did nothing wrong. This is why we shouldn't really end up trusting them enough to let them have the power to crash crypto world.

Any stablecoin has the potential to detach its peg at any given moment there can be no assurance of a 100% guarantee for any stablecoin, whether it's USDT or BUSD. It's advisable to diversify and not concentrate all funds in a single stablecoin such as USDT. The potential consequences of USDT losing its peg could be significant for the cryptocurrency market, given the widespread use of USDT by millions of crypto users. While I've heard numerous rumors about USDT's history, to the best of my knowledge, it has never been significantly affected.

There are other options to choose from, not just usdt, but also usdc and usd. Maybe it's just in cases like this that it seems more useful to use usdt, especially for a crypto enthusiast like me who can use usdt when I do transactions using p2p to our fiat here in my country. Although it's the same percentage that I can do for usdt as well. Also, if I put eggs in another basket, I will not collect stablecoins, I prefer potential altcoins.

I agree that any stablecoin can lose its peg to the dollar. This has happened to all known coins. For me, the indicator of a stablecoin's reliability is not whether it has lost its peg to the dollar or not. Much more important is how the stablecoin behaved after the de-peg occurred. If the stablecoin is reliable, the exchange rate recovers very quickly, within 1 or 2 days. In this respect, USDT shows much more reliability and stability than other stablecoins.

If it falls back to $0.1-0.2, I would probably buy more of it and maybe in the future it could go back to its former glory or the should be value that it has which is $1. If that really reached that point, I think it's the end but you could still try though.

Your strategy is good on following that common saying. That's just ideal.

If there is a collapse with usdt like there was with terra usd, it will cause the whole cryptocurrency market to fall. If the collapse of luna and ust led to a serious fall, the collapse of usdt will probably have very serious consequences. But at the same time it will be a good opportunity to buy bitcoin cheap, for example as it was in March 2020.

Depegged that happened to UST made us to be wary of all kinds of Stablecoins, we won't know what will happen in the future. Will stablecoins remain stable or even crash. it also depends on the Founder of the coin, whether he can be trusted or not. Nobody wants USDT to fall, but just in case, holding Fiat would be better or holding Bitcoin as a top Coin is anti-inflation and good for the long term. Despite the rapid price fluctuations, but it will be more profitable.

I would guess that the point is not that if USDT falls down then we could start using other stuff because that's not the point and I understand that we are going to be able to use other stuff as well. Even today I use busd more than I use usdt right now and I can say that I trust and prefer BUSD a lot more and they are doing a great job and there is nothing wrong with that.

However, I would like to point out that we are not going to be ending up with anything that would be different considering the fact that bitcoin is the best one and usdt or busd do not have any candle to hold for it. However, the point of this is that if usdt goes down that means a lot of money gone and the price of all cryptocurrencies would go down too.

As you had already given the answer of your choice in the last sentence, the same in the case with me. I had also my portfolio of different stable coins, I had never trusted only a single coin in my whole life. Putting in different coins is much better than in one.

If the USDT falls, then the crypto market will decrease many times over. Losses and disappointment will be so strong that Bitcoin could fall to $2000-5000 and many altcoins will disappear completely

If USDT fall down than crypto currency market will going huge down because now 80-90 percent people’s doing trade with USDT and holding also usdt so we want usdt never fall Down.

Already have stable coins falls down like UST as Luna network coins, big impact drastically with current market condition drop and all cryptocurrency coins increasing down under 10%. For the future if happing again with USDT falls down sure big impact for cryptocurrency and potential for Bitcoin or altcoin will going drop drastically. Stable coins or USDT have bigger impact because many pair of trading still dominance by stable coins and all trader use this pair for trading, many of them saving assets or funds in stable coins and unpredictable how frustrated when USDT fells down.

Need to separated holding assets not only in stable coins or USDT but also use several kinds of altcoin for holding our money, unpredictable with stable coins fells down later and UST is great experienced for us how to be careful with stable coins.

Thankfully I don't save my assets in USDT.
However if there really was a situation like this, it was undeniable, it would definitely be difficult. If a stable coin that is trusted enough and is used by many people and various exchanges, and suddenly drops or has a rug pull, then there will be some problems. especially if the coin cannot be sold or converted again to other coins. This is going to be a big deal. Maybe this will be difficult to happen but that doesn't mean it's impossible. Because it could happen in the future due to something really bad.

That's why I personally don't think about keeping assets in USDT or stable coins, only using them sometimes for pairs in trading. However, we must always be vigilant and always update the market and news to quickly avoid unwanted things.

I think you kinda exaggerating. 80-90% is at least a little bit higher than it actually is. Also, I don't want anything like that to happen, but it would be really interesting to see.

All of what you said is true, however since we are talking about USDT which is the most dominant and important stable coin I think things could get even worse.

If USDT collapsed as described by the OP then I doubt the other stable coins will remain unaffected, if anything the trust should be lost on those coins as well, even if they are not experimenting any problem on their own, and this could lead to the complete demise of stable coins in this market, something I think the governments would be incredibly interested on seeing happening.

Well, because a system is accurate as fuck doesn't mean it cannot fail, even a healthy heart and kidney fail at some point when it is stress to max point multiple times. But there is something we need to evaluate about stable coin going to below pegging value, because without understanding this, it will be an effort for nothing, no valuable information will be gained at the end of the day.

If you recall what happened to USTC, I mean the Tera classic stable coin? It wasn't backed by anything other some portion of some BTC and their tokens. It was an experiment meant to succeed beyond the space of USDT but failed when Bitcoin price start dumping and when some people saw some flaws in the Defi, they made use of it to manipulate the price and short the he'll living out of the stable coin and today, it's worth nothing, all investment down the drainage.

Coming back to USDT, they are back with fiat and some other short term bonds that I don't fully know but it more safer to say that it wouldn't crash the way we have in mind but as I have said, because it's the system is working doesn't mean it can't be stress. Just to be safe, 20% allocation of your assets into USDT is okay in my opinion.

Then something will rise up and be the next or new usdt. Its gonna be like ust case where its die out but its gonna be hard to let usdt fall into that gap range cause they have a lot of funds and has diffrent case of luna stables. But if this were to happen at some point this could bring very bad effect on market cause usdt is one of the major or the most commonly used stablecoin so people might panic about the market.

It makes no sense to scam USDT otherwise cryptocurrency trading will be lost. I assume that the government is behind the USDT

You will get from us multiple answers because most users here don't have USDT as their investment rather they are just using this opportunity when they don't have any alternatives for fiat and they don't have any means to convert their coins at its current high price when the crypto market is congested. But when you choose it as an investment, then you need to consider the bad sides when the owner faces some trials because it could also demise the price of USDT as well. That's why most people do not recommend this kind of investment nowadays and they let others choose the safe one which is bitcoins.

UST had an impressive LFG fund which was the collateral for LUNA, this fund had tens of billions of dollars in bitcoin. The main problem was that UST was giving an unrealistic interest rate, almost 20%. At that rate, you need a constant inflow of new money. It was more like some kind of pyramid scheme, where the pyramid lives if there is a constant inflow of new money. Because of the problems in tokenomics, LUNA faced hyperinflation and even a huge fund could not save the situation. Apparently they realized that the situation cannot be saved and it is easier to sell off all bitcoins than to try to keep UST from de-peg.

I put all of my money in Bitcoin, it's mean either USDT is collapse or not, there's nothing will affect me.

You're correct there's will be a time USDT will collapse, it will happen since it's possible. USDT is centralized and it's not fully backed with real USD, it's different with Bitcoin where it's decentralized and no one is controlling Bitcoin.

Sometimes usdt fails down,Better option my opinion bitcoin hold great opportunity. Don't loss your fund.Bitcoin hold best choose for most people openion.Some time fails usdt in crypto market.This is big loss for crypto market.So I hope bitcoin hold good investment.This question another answer because some people used Usdt most time & some people used bitcoin.

I only hold a few USDT because I don't see a point for me to use it, i would rather get rid of them, but for others, maybe it's the best coin in the world! We all thinks different.
But could it really go down that low to $0.1-$0.2? and when you say that can it also go up to $10. I am not a pro at crypto, but isn't USDT a "stable coin" so isn't the whole idea to be stable around $1 all the time?

"Stablecoin is a fixed-price cryptocurrency whose market value is attached to another stable asset. Differing from normal cryptocurrencies, stablecoin can be pegged to assets such as certain fiat currencies that can be traded on exchanges, including the U.S. dollar or the Euro." - Stolen from Google.



- BabyBandit -

USDT is issued by a centralized company, Tether, and not the government. The implications on crypto trading will be massive if USDT gets depegged, but the implications doesn't mean that it is not possble, and you are wrong that it will be the end of crypto trading, people who use stable coins will find other available options. The company that issues a stable coin can become insolvent or fail, and that will mean the end of that stable coin, thus when dealing with centralized coins mind you that if anything bad happens to the issuing company, the coin will become worthless.

We know USDT is Stable coin. But it also a crypto-currency. So it can be fall down i think. But it will never impact with me. Because i only use USDT for converte to another cryptocurrency. I never hold it. As i never hold it so i think it will never impact to my portfolio if it’s price fall down. And i also think when USDT price will fall then other stable coin will fill its place.There are many stable coin available in cryptocurrency market like USD, BUSD, USDC etc. We saw some days ago it happen with UST but within short time another stable coin fill It's place.

And you think exactly correct i also think don’t put all fund in one Basket. All we know that cryptocurrency is highly profitable and highly risky. So all of us have to think aboit It's risk. And i will tell when you will saw any problem in USDT then please avoid it then. Because it is a stable coin.  No any profit you will get from holding USDT.

The cryptocurrency market is still relatively young and can be influenced by events that impact overall market sentiment. If a major stablecoin like Tether were to falter, it could lead to a decrease in overall confidence in the cryptocurrency market, potentially causing broader market declines.

Depends on how shaky it gets. Every now and then its price gets decoupled from the dollar, but that's only a small negative. I'm honestly afraid to even imagine what would happen to the market if usdt goes down halfway.

I don't want that to happen, but I think it would be at least interesting to see how the world will react if USDT goes down. I mean, Bitcoin will come back sooner or later anyway, but a lot of influencers and scammers will fall.

It's a major misconception that USDT is as stable as dollars and it cannot go down, we have seen in the past when USDT has been dwindling and I am 100% sure still we have users holding huge amount in USDT without there no legally binding terms which says USDT will be equivalent to USD and there is no guarantor for this. I have seen USDT's value dropping by over 50% when there were speculations that crypto will be banned in India and this is a reminder for everyone that it can go down anytime it's no different that other crypto coins but can be used as a medium of transfer as it's not volatile but we shouldn't be holding huge amount here.

Yes. Tether has its own strengths and is highly favored by crypto lovers as the world's third largest cryptocurrency by market value. Because USDT is resistant to current global conditions, but if we review it after the fall in the value of TerraUSD (UST) from its benchmark value of $ 1 and this could be one of the possibilities and will be the second bitter pill for the holder as you said above. Well what am I also going to do if it will happen again, I'm trying to get out of it and into BTC as fast as I can.

I completely agree. However, the USDT price drops are caused primarily by market manipulation by large-scale investors. Their sole objective is to make profits. I believe it is not necessary to separate USDT from the dollar at this moment. It would be more beneficial to carry out the separation before the next bear market phase to swiftly reduce market values.

Tether is the most popular stable coin. Many people use it and trust it. The capitalization of the Tether becomes to grow.

Their will be a panic in the cryptocurrency market, if USDT falls down below imagination, which that can't happen, because USDT is build for strong stable coin that many investor's and traders used when market not favourable. And also USDT stable coin is 100% trust, which hardly breakdown from the support level at any given time.

Is not it better for you to take a look at which party that is behind USDT rather than blindly accusing the government was behind USDT? It's a bit hard to understand what you are going to say. The fact that if USDT can depeg anytime.
The price keeps stable caused it has reserved funds that used to keep it. You shall aware about USDT is controlled by the company. The government is not having ability to access it without owning the key to the contract.

The mechanism in the blockchain has been preventing the government from seizing it at least not for now. Did you remember the case of USTC? It's collapse due to the mistake that being made by the company itself.
The government ever touch it. That proves that when USDT may collapse and you shall accuse the company who is behind it as the main actor that was making the price of USDT plunged.

I remind you that even USDT has been plunged so many times even though it was not so significant.

Technically, there are no questions at this stage. However, are you certain that collaterising dollars and securities does not conflict with the issuer's statements and documentation? I am uncertain, so I shall remain vigilant when it comes to such assets.

Anyone that thinks that a stable coin is as strong as the fiat currency they are supposedly emulating is out of their minds, this is the same that happened with currencies which were backed as gold, they claimed to be as good as gold and we know what happened, all of them became fiat currencies as the governments could not keep stop printing more and more money.

And stable coins are worse in the sense that at least fiat currencies can still survive someway or another as a government is backing them, but if the company behind USDT collapses then the value of the stable coin will go to zero.

We all saw what happened to the TUSD, the damage it did to the crypto space when it depeged from the US dollar, a lot of investors lost their life-saving just in a matter of minutes as a result of that event and coming to USDT, the same thing could happen to USDT no matter the amount of money used in backing it up and the team behind the project, all we pray is for such thing not to occur again in the history of concurrency.

I agree, but there are people who assure me that a decoupling from the dollar can't happen. What fools... The behaviour of the cryptocurrency market cannot be predicted, let alone the rise or fall of tokens. Cryptocurrency is always a risk, you cannot be sure that everything will be fine.

I mean I think he just mean that he "assumes" that USDT is behind it, like CIA or something, which I know sounds silly but if you learn about what CIA did back in the day, the things that are public information right now, you will realize that there is nothing they won't do to hurt people.

The entire existence reason for CIA is to create disability that is not working for the government, and they are untouchable by the government as well, they are so powerful that anyone from the government tries to hurt them back? They will just attack full force and destroy their career for even attempting it. This is why I believe that it is going to end up being a little different on the long run, and could be considered different.

Yet the unrealistic interest rate was used to attract people to locked their token on the protocol without reviewing the implication of what they did, more like a genocide and greed and they all fell for it. Selling the Bitcoin was the greatest mistake because they know very well that BTC is backbone of everything, they held billions worth of it which people has many believe in, it was a red flag to do that even for the purpose of the general market. I just think that UST was a test protocol that was poorly designed during the bullrun, it would have been better during a time like this when there there is no too much greed and excitement.

It's kind of even funny that CZ and many OGs Venture capitalist regret ever coming to the market. If Luna and FTX were to be still alive today, maybe the market will be stable and have much trust than the way it is now, it will take a lot of effort for us to go back there again, even Elon is gradually exiting the space.

All success here is based only on human vices. If an investor is promised a high return, the investor's critical thinking is turned off and he is ready to take his money anywhere, as long as he is promised big winnings. Not all investors are like this, but a lot of them are.


UST is an algorithmic stablecoin, and all algorithmic stablecoins have shown their complete failure and subsequently many companies abandoned such projects, and those companies that had already managed to launch their algorithmic coins quickly abandoned them, for example, NEAR.

Exactly. You'll never know if USDT loses its value in the future due to bankruptcy, a hack, or any other undesired event. Investing into it is like playing the "Russian Roulette". After all, stablecoins are NOT backed by the government. If you want to be safe, cash out to Fiat instead. Things don't last forever, anyways.

Once CBDCs are launched (especially the US Digital Dollar) you can say goodbye to stablecoins for good. I'd be surprised if somehow Tether manages to survive the constant pressure of the regulators. If it's still afloat, then it could live alongside CBDCs for a very long time. No one can predict the future, so lets hope for the best. Just my thoughts ;D

This is coming, governments are not going to allow for centralized stable coins to keep on existing much longer, if they can make them disappear then a lot of traders will switch and will begin to use their CBDCs, and this means they will be able to ask them all kind of questions about the source of their funds.

And if they do not like what they hear they can easily block them and keep their coins, but for this future to come to happen independent stable coins need to be destroyed, which is why we are seeing the pressure on stable coins increasing lately.

It is difficult to say what will be happen in the future. As stable coins were depegged in the past, the USDT could be the same. However, if such situations happens, then the crypto market face a long-term crisis. I also agree with you that not all eggs are put in the same basket. As cryptocurrencies are risky so we should invest accordingly in research and discussion. So to reduce the risk one must invest in different platforms.

The only way stablecoins will survive is if governments adopt them as their own. Something like a partnership between the issuing company and the government itself. That would eliminate the need for central banks to reinvent the wheel by launching their very own digital currency (CBDC). But there's a small chance this will happen in the future, as governments always want control over everything. We can say bye-bye to Tether for good once governments decide (especially the US government) to hit the "kill switch". It would be easy enough to shut USDT down because of its centralized nature.

I'm pretty sure a USDT collapse would be a huge blow to the crypto market. Prices will decline for a prolonged period of time. No one can predict the future, so lets hope for the best. Just my opinion :)

Do you mean UST? Because TUSD also depegged, that's true, but it didn't have any long-term effects on the market, as it quickly rebounced and recovered within a few days. The truth is that no stablecoin can practically be trusted 100%, as USDT is said to be backed by actual dollar reserves. It has depegged in the past, but it wasn't too major, as it always quickly returned to normal. Would it be possible to completely lose the 1:1 peg and go as low as $0.40? I'm not sure, but if something like this were to happen, it would cause chaos in the cryptocurrency market due to the extravagant market cap, and investors would be switching to other stablecoins, with the possibility of unstabilizing them too.

It will. We can take the example during the time when there was a continuous printing of Tether. IIRC, that was around 2016-2017 and that certainly created an impact as those were the years like we're in a bull run. The thing here is that those printed USDTs were used to buy and stack more of Bitcoin for Bitfinex.

Yep, it's always unstable, volatile and risky but we've been used to that scene and hoping that we get another unexpected and greater bull run without any failure from any of these big cryptos.

Governments' involvement with stablecoins? Interesting, but a little too perfect. Why? Centralized groups could shut down something like USDT, but doing so could cause a big fuss among crypto fans.

Now, heres where you're missing the bigger picture - stablecoins are merely an intermediate step! If you will, a bridge. As cryptos spread around the world and develop, they will become the new stable. They will be the gold standard that all other currencies try to match. So, lets say that Tether goes down. Its just a step. The end of one stablecoin wont cause the crypto world to fall apart. Prices going down? Trouble in the short run.

This is how technology has changed. It is bigger than both USDT and government banks. Think big picture, not small. And yes, there may be mistakes in thinking here, but isnt that what forecasting is all about?  So, while we're in the "what-if" limbo, lets not lose sight of the bigger picture.

I don't believe a hundred percent in any point in the crypto currency world other than Bitcoin. So I always try to hold most of my funds in Bitcoin. But sometimes something is held in USDT that is temporary. If we see many big alternative coins have fallen in the past few incidents. I hope no such incident happens with USDT, but if it does, it will undoubtedly be a huge disaster in the cryptocurrency world.

The idea has always been to replace the middleman. Banks will eventually fail as people begin to lose trust in them. With rising inflation rates, and economic uncertainty, we might see a future where decentralization will be the cornerstone of the mainstream economy. This means no banks and no evil corporations behind everything. People would be in-control of their money via the use of decentralized cryptocurrencies such as Bitcoin and Litecoin. The odds of this happening are very slim, especially when the world is still stuck with the "Fiat standard". Expect stablecoins to be relevant in the time being. Crypto is still in its early days, so let's give it some time and see what happens. Who knows if USDT's rise to glory will be short-lived? Just my thoughts ;D

the aftermath would certainly will be massive, you can imagine when a coin with market capitalization that reaches $82 billion collapse, you can almost sure that it spell chaos.
there is most certainly always chance that something like USDT might be collapsing in the future, no one expected that TUSD was gonna be falling back then but it falls anyway.
same thing with USDT, thats why with the emergence of the latest paypal USD stablecoin and the other, it just gives option to diversify the coin not entirely depends on just one coin which might means that our assets are doomed whenever they are collapsing.
with diversifying we could anticipate such things from happening considering the fact that these stablecoin are usually ran by some companies that have different management and transparency in regard of their reserved assets for their stablecoin.
but I believe that USDT will not easily fall as many pictured out to be but better prevent anything bad from happening to our assets.

I agree, this will make a huge impact as it is the largest stablecoin. We can't still deny that most people use USDT than any other stablecoin.

Yep, it's always unstable, volatile and risky but we've been used to that scene and hoping that we get another unexpected and greater bull run without any failure from any of these big cryptos.
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Just like how we know the whole market, it will always be unpredictable. This is the reason why we should be alert in any situation that is happening in crypto world.

fundamentally different thing while TUSD dynamically backed up by reserve of various commodities and even coins that fluctuates a lot, the other is purely backed up by reserve of money and precious metals if i'm not mistaken.
so I guess same thing won't be happening with TUSD moreover i'm sure that the company behind USDT also knows very well not to make the same mistake like TUSD thats why they are still going strong until this day.
meanwhile TUSD is already vanishing into thin air.
but I think its still good measure to keep diversifying our money when it comes to stablecoin just in case after all no one knows for sure whether this coin could collapse or not.

We've seen on what happen or the issue on USDC on this year alone.

USDC's Depeg Laid Bare the Risks Traditional Finance Poses to Stablecoins
https://www.coindesk.com/consensus-magazine/2023/04/02/usdcs-depeg-laid-bare-the-risks-traditional-finance-poses-to-stablecoins/

Even with that slightest movement of USDT just in case then for sure tons of people would be losing up their money.
Considering on the current MC $82,911,788,716 the slight movement will cause disaster.

What would happen if it falls down or messed up? People would still trust blindly on other stablecoins that currently existing in the market before USDT.

Each stablecoin comes with its risks. After all, they're not backed by the government. You'd need to trust the issuer of the stablecoin (in this case the private company in control of the stablecoin) to maintain the 1:1 peg with the USD "forever". If the issuing company faces bankruptcy or the bank with the USD reserves collapses, you can say bye-bye to your investment for good. USDT has been lucky to maintain its USD peg for long.

On the other hand, USD Coin lost its peg for a short period of time. To be on the safe side, just cash out directly to Fiat (usually to USD) whenever possible. Who knows how low will the crypto market go after USDT's collapse? Just my thoughts ;D

Digital currencies are known to be more volatile than people think usually goes like this If USDT goes down BTC goes up, if BTC goes down USDT goes up Yes. prices for altcoins are soaring but maybe now it could be something else USDT is going up BTC is also going up and the word volatility is for the same reason.

The stability of stablecoins like USDT is essential for the broader cryptocurrency market. If USDT were to fall down, it could erode confidence in stablecoins and potentially lead to a loss of trust in other cryptocurrencies and the overall crypto market. Investors and users of stablecoins should be aware of these risks and consider diversifying their holdings or using alternative stablecoins to mitigate potential losses in the event of a stablecoin's fall in value. Additionally, staying informed about the regulatory environment and the stability mechanisms of stablecoins is essential for making informed decisions in the cryptocurrency space.

In my opinion, if USDT falls, then investors will not believe in using stable coin anymore, but for cryptocurrency it will not have a big impact (in my opinion), because the one that influences cryptocurrency the most is Bitcoin, so as long as Bitcoin still survives and remains popular, then cryptocurrency will survive too, therefore I am more interested to investing in Bitcoin for the long term, because Bitcoin is safer and will definitely give me a lot of profit in the future.

alright maybe if USDT touches 0.2$-0.5$ I won't panic. My total assets in USDT are only 10-15%, the rest is in the form of gold and Bitcoin, especially Bitcoin, because I keep my assets in BTC, all in a cold wallet. because I know that if I put it in USDT it will only make our money go somewhere or even go down, but what can we do, we still need it for transactions in other countries.

If Binance or USDT crash, will be the Worst Blackswan of Crypto era, and a lot of altcoins will never recover of that

Most of my savings in cryptocurrency are in usdt and Bitcoin, until now I never knew that the value of usdt can drop thought it will always remain stable forever. If Any Usdt crash ever happen then a lot of people will go bankrupt cause most don't know about this . let's hope it never does.

Is it that simple mate? I don't think so my friend. People always says this but so far, so bad. It's the opposite of its that usually happens. Take a review look at UST, the tragedy will remain a mark on some peoples skin and a memory that will be difficult to forget, trust me. Even when some people are saying bitcoin crash due to the fact that UST was backed by some portion of bitcoin and other coins but what about that day USDC depeg? It wasn't and is not back by btc but when that happened, bitcoin was crashing during the weekend not until monday before they make an announcement of using some insurance funds to cover the loss before the depeg fully pegged back to the original value.

I don't wish to see USDT collapse but if that eventually happens, mehn some altcoins will die, many coins will not recover again, top altcoins will be lifeless and bitcoin will suffer the most but it wouldn't happen. However, that's not a guarantee actually, we should always look out for potential threats and deal with it before they turn to bigger problems that will result to investment losses.

Well to be honest with you,  it won't effects the price of any coin and if you are holding Bitcoin at the time of USDT dropped as per say in the op,  you still be at an advantage since the total amount of USDT vs Bitcoin will differs significantly,  but if you are holding USDT as at the time of the crisis,  that will be a devastating situation.

But then I believe we shouldn't hold so much of a particular coin if not bitcoin as far as cryptocurrencies are concerned.

USDT is pegged to dollar so it is not the USDT that goes down but the dollar itself.  And when that happened since Bitcoin price is invesrsely proportional to US dollar, it is an obvious expectation that Bitcoin will goes up if US dollar has less purchasing power.

But if the USDT is depegged from the US dollar and keeps on crashing then the amount of USDT to buy Bitcoin will really increase.

its more likely that if usdt is ever gonna be crashing its definitely gonna be caused by the fact that it got depegged after some people figure out something is wrong with the reserve, but its currently is all normal and safe though so don't really think about USDT falls down too much because I don't think it will.
the thing with USDT is that, the reserve are quite transparently disclosed to the public its also audited, so I don't think there will be any implications in the future.
added with the fact that many pictured USDT to be too big to fail though I don't believe such words but I guess it make little sense.

I've never recommended or found a reason for anyone to hold stablecoins for an extended period. Personally, I prefer selling or converting them into other assets rather than holding onto them. However, if a widely used stablecoin like USDT were to collapse, it could indeed have a significant impact on the crypto market and create fear among investors. Fortunately, there are alternative stablecoins available, so it might not be a catastrophic event.

I also agree with you. And here I want to give my opinion that it seems like USDT will not fall because it will always be a popular coin that is needed for the transition between cryptocurrencies and FIAT money. And as several members here have explained, many people don't actually store their assets in USDT.

USDT is the most used and trusted stablecoin. If this stablecoin ever crashes, many people will suffer huge losses. Because many prefer to convert their assets to USDT. So I think instead of just converting assets to USDT, they should also keep them in BUSD, USDC and DAI.

BUSD and USDC will be the most popular stable coins if USDT fails. But for this huge amount of people will lose huge amount. Because USDT is held by many people. People lost billions of dollars due to UST crash, but if USDT crashes, people will lose trillions of dollars and with it people's trust in stablecoins will go away. And at the same time the price of other cryptocurrencies including Bitcoin will rise.

The market might move with Bitcoin but that doesn't mean that there will be no effects if the most used stablecoin loses its peg. The market was even affected when UST lost its peg which made LUNA crash and the project went to zero in no time. So, the market will surely be affected because of that and there will be a lot of FUD and a lot of things going on because a lot of people will lose a lot of money because of it if the price of USDT goes down.

UST was not as popular as USDT, and it wasn't held by as many people as USDT but there were still millions of dollars that were lost when it depegged and if the same happens with USDT, we can't even imagine how much money will be lost and the market will totally shake because of this incident.

That's certainly true, mate. After all, USDT helps keep market liquidity afloat. BTC may be the reserve currency of crypto, but USDT is the one that manipulates everything. A collapse would lead market prices all the way down to "rock bottom". It will be a huge opportunity for new buyers, but a complete disaster for long-term holders. There's nothing we can do to prevent this.

Cashing out to Fiat (particularly the USD) beforehand might be the only way to minimize risks of loss as much as possible. You can never trust a stablecoin with shady practices. Who knows if a USDT collapse would be the "last straw" for investors to stop trusting stablecoins altogether? Just my thoughts ;D

At least in all these years of trading in the crypto market, you know it's not dependent on one coin, so I am sure even USDT's fall will have some impact on investors but not the whole market. And also, USDC and USDT are fine. There is a lot of fud out there; USDT did a lot of sketchy things, but I will say USDT has a bigger market cap than USDC. There are a lot of people trying to take out your USDT, and maybe in the future it dies, but right now I don't think it's that big of a deal. I think a lot of it is a fud. But what I will say is that you can't short the market without usdt on the platforms that I use, so I am cool with holding usdt right now. In the future, that might change, but yeah, just don't get caught in the fud.

Not the "whole market"? Nearly every cryptocurrency has a USDT trading pair. I'm pretty sure a USDT crash will have long-lasting repercussions on the crypto market. Such an event will cause huge distrust among mainstream investors and traders alike. USDT has been holding well so far, but it's not guaranteed to last forever.

It's advised to cash out to Fiat (USD) whenever possible. No one knows when "the time bomb" will explode. Just avoid putting all of your life savings into USDT, and there should be nothing to worry about. ;)