How safe is Tether.to/USDT?

[crypmon259]

I have long been using usdt and never had problems with the fact that the coin did not reach and so on , a lot of negativity about this coin but I think not reasonable , I keep a lot of money in the usdt and do not worry about it.

Negativity about usdt has a fair point. Their audit report is doubtful , they say they keep in real estates and bitcoins , there s not details about this. Only talking about keeping in usd reserves is not really cutting the point. and the most strange thing is they just keep on minting tokens as they like . Its like they are holding bitcoins , then minting more to pump again bitcoin price. Its fairly been established Tether s used for pumping btc price big time

[StatesManG]

I would say that I got confused about Tethers salty after their last saga of minting 5billion USdt out of nowhere. It only means that they don't have any specific total supply and could mint any amount of token at anytime which is not safe for cryptocurrency in general

[pinoy.bolanon]

Hi everyone,

I'm just wondering about people's opinions on how safe is Tether.to/USDT? In terms of putting largish amount of money in there ($10k+), what is the risk of the service going out of business, or not honoring withdrawals? I.e. what is the risk of another Mt Gox, Mintpal or Cryptsy incident on here?

I can see that it still says "Beta" on the main page, and that it's a Hong Kong outfit. Not sure what kind of financial regulation/overwatch they have over there when it comes to these things.

I guess other little warning bells are that they don't have an easily accessible support link on their user interface (you can however email support@tether.to), or at least I couldn't easily find it.

Is there a safer way (which is still easy and cheap) to park some USD while BTC is going through it's fluctuations?

Thanks

Ive been trading USDT in binance for a quite some time, and i never experienced any difficulties regarding my deposits and withdrawals, but of course we have different experienced and expectation to a coin, but most of the time that i used this coin, i never had any problems at all, i dont know the others, but this is just based on my own experienced. Among all stable coins, id still recommend USDT.

[tebzzz]

I would say that I got confused about Tethers salty after their last saga of minting 5billion USdt out of nowhere. It only means that they don't have any specific total supply and could mint any amount of token at anytime which is not safe for cryptocurrency in general

yes, that's what happened. this is a stable asset, and it will not be different from fiat money. they are free to duplicate and re-create the amount that exists and circulates in the market. but I think developers will definitely calculate how to control prices so they don't become too expensive or too cheap.

[Bitcoin Seller]

Unfortunately, I would say, tether is not safe at all.
Also, why would you want to park your usd in tether while btc fluctuates?
Wouldn't you rather actively trade to take advantage of those fluctuations.

Another thing to consider, is do you even need a stable coin?
In a lot of ways, a stable coin can actually work against you.
The main reason is that the stable coin is actually not really stable at all.
It's only real use is to use it in crypto trading and the market is entirely unstable.
I mean, just think of this, keep your usd in a normal savings account, you'll at least get some interest.

I would stay away from Tether. Cryptocurrency capitalization is calculated by the number of tokens in circulation and the size of the reserve. Coinmarketcap says that Tether’s market cap is now equal to $ 4 billion. It turns out that the reserve can formally support the value of these tokens. According to some experts, the bulk of this money is already offshore. In this case, the Tether capitalization is a simple fiction.

[beerlover]

It is not safe actually. People do not realize this fact but if every single person in the world wanted to cash out their tether to either dollar directly or even bitcoin, tether company will not be able to cover all of it. First of all they do not have cash that can cover even half of it, they do not posses that much cash at all, they have very few amount just to keep some people happy that want to cash out but not many of them.

On top of that they have a lot of investments to stable things like bank interests and simple stocks and bonds etc all over the world so they would have to sell them, and even after that they do not have 1 to 1 ratio anymore. So long story short tether is very dangerous and is a ponzi, if we all end up trying to get our tether we will realize that the real value of tether is 0.7 cents on 1usdt not 1 dollar.

[0verseer]

Nothing is 'safe' in cryptocurrency, yes that's include Tether USDT.
Don't hold too much USDT only if you plan to cash out at later.

[adamin1i]

Hi everyone,

I'm just wondering about people's opinions on how safe is Tether.to/USDT? In terms of putting largish amount of money in there ($10k+), what is the risk of the service going out of business, or not honoring withdrawals? I.e. what is the risk of another Mt Gox, Mintpal or Cryptsy incident on here?

I can see that it still says "Beta" on the main page, and that it's a Hong Kong outfit. Not sure what kind of financial regulation/overwatch they have over there when it comes to these things.

I guess other little warning bells are that they don't have an easily accessible support link on their user interface (you can however email support@tether.to), or at least I couldn't easily find it.

Is there a safer way (which is still easy and cheap) to park some USD while BTC is going through it's fluctuations?

Thanks

The speculation about Tether is never over. I've always heard negative news about him since I've known him. I do not trust him too much and do not use as a stablecoin

[Rengga Jati]

I have also read the comments of some people that Tether as stable coin tends to be like shit coin. Where more and more days have little development, even rarely have progress. But of course there are many contradictions for those who like the function of stable coins for various interests, especially payment methods, Regarding safe or not, I personally don't really understand.

[hell_slayer]

If you have even the slightest doubts about the reliability of Tether, then just do not use it. Tether was needed by the market as a stablecoin, but now it has enough alternatives, so you can freely use any stableblecoin you trust.

[fullhdpixel]

Well for now, tether is still very strong and can be trusted for the moment, but it is impossible to tell the future of some of these stable coin, and I believed more in tether after the bitfiniex issue with government and transparency challenge they had about the services of tether which even landed them in court, but none of these issue affected tether.

I think tether has come to stay strong for the time being, but before I can quickly conclude on this is when their new rival arrives the market, then I can know if they will be strong enough to withstand the storm or not. Libra coin is also a stable coin, and Libra coin will really gain more popularity and usage than these other stable coins, and until it’s release, we will, then know if they can stand Libra or not.

[Iykecollinz]

Being worried about the fact of the effect of more tether printing, I would consider sharing among other stable coins to be at least on more safer side, Binance about five different stable coins to hedge fund, Usdt, Tusd, Usdc, Pax, Usdsb

[MidnightWolf]

I believe that any cryptocurrency carries with it a certain risk and therefore I control all my assets in order to react in time to any situations in the cryptocurrency market.  Of course, such stable coins as USDT help to avoid large losses during the fall of the cryptocurrency market, but nevertheless even this coin is monitored by me, although I believe it most.

[Caishen_Project]

Keeping funds exchange is one of the greatest risks in crypto, although we have exchanges that we can trust but since crypto is not yet regulated, exchange owners can do anything. But lately why researching on how to keep my BTC safe and that I can easily convert to usdt during dip, I came across enjin wallet, am still reading about them to know how decentralised they are.

[mannybitcoins]

Tether is a stable coin. It is very widely used. It is a good coin and also in the top 10, and is holding that position for a reason. (Well until Libra, the stable coin by Facebook, comes in  ). 10k doesn’t seem that much money in terms of the what exchange are dealing with. It will have minimal risk, I believe. But do your research thoroughly. The points made by pinoy.bilonon are spot on, you should consider them too. Everything has a risk involved.
But according to my opinion, Tether is after all among the top 10, and widely used stable coin, so you be the judge. Just do your research thoroughly before putting your money into anything. Just remember, everything has risk in it, especially this crypto world.
 Best of Luck, mate.

[BQ]

There's a lot of attention on Tether from the New York Attourney General for example, and it's not going to end well.

A better choice is to just place your funds in real fiat, this is offered in many exchanges.
CoinMetro will be offering 30 fiat currencies natively for withdrawal/deposits and pairs for example

[bkbirge]

What is the use case for stablecoins in general? Is it just a way to trade in and out of positions on exchanges that don't have a fiat gateway? Or is it a way to avoid capital gains tax since you don't actually convert to fiat? Not sure I see the benefit, can someone kindly explain?

[crypmon259]

There's a lot of attention on Tether from the New York Attourney General for example, and it's not going to end well.

A better choice is to just place your funds in real fiat, this is offered in many exchanges.
CoinMetro will be offering 30 fiat currencies natively for withdrawal/deposits and pairs for example

Exactly was my point , Tether has been manipulating and minting tokens without any audits like there s not tomorrow .Its generally extremely fishy , and they are fooling people into thinking that its real USD like tokens.

[bryant.coleman]

If you have even the slightest doubts about the reliability of Tether, then just do not use it. Tether was needed by the market as a stablecoin, but now it has enough alternatives, so you can freely use any stableblecoin you trust.

There are no stablecoins out there, which we can trust 100%. Earlier I used to trust Tether, but later it was proven that they didn't backed up their tokens 100%. Bitfinex used funds from the Tether backup to cover its own losses. That makes you wonder whether any of these stablecoins are reliable. Now the Tether market cap has zoomed past the $4 billion mark. And to this date, they haven't completed external audit from any of the reliable third party vendors.

There are other stablecoins out there such as USDC, TUSD, GUSD and PAX. But after the bad experience we had from Tether, how is it possible to trust these coins? And one more thing. A recent analysis revealed that more than 80% of all the Tether tokens are being stored in just 318 addresses. This should rise enough eyebrows in my opinion. There is no other cryptocurrency out there, which has such a skewed distribution. Not even Ripple, which is regarded as the most centralized crypto.

[dungp3132]

There are no stablecoins out there, which we can trust 100%. Earlier I used to trust Tether, but later it was proven that they didn't backed up their tokens 100%. Bitfinex used funds from the Tether backup to cover its own losses. That makes you wonder whether any of these stablecoins are reliable. Now the Tether market cap has zoomed past the $4 billion mark. And to this date, they haven't completed external audit from any of the reliable third party vendors.

There are other stablecoins out there such as USDC, TUSD, GUSD and PAX. But after the bad experience we had from Tether, how is it possible to trust these coins? And one more thing. A recent analysis revealed that more than 80% of all the Tether tokens are being stored in just 318 addresses. This should rise enough eyebrows in my opinion. There is no other cryptocurrency out there, which has such a skewed distribution. Not even Ripple, which is regarded as the most centralized crypto.

I totally agree with your perspective. It is true not only for stable coins, for Tether USD in particular, but it is true for other things in our lives, especially in crypto market. If biggest exchanges like Poloniex, Bittrex can tail off and lose their market significantly within short period; it is possible to see Tether USD lose its position as the biggest stable coin in the future. Tether USD recently has upgrade or tried to bring more convenience to users, by switching partially to TRON, Ethereum network, rather than sticking with OMNI as it originally built. It's a good move, but not a guarentee for Tether USD's future growth.