How safe is Tether.to/USDT?

[mich]

Tether Continues Tear as its Daily Crypto Transactions Reach Record Levels

“In order to maintain accountability and to ensure stability in exchange price, we propose a method to maintain a one ­to ­one reserve ratio between a cryptocurrency token, called tethers, and its associated real ­world asset, fiat currency.”

https://www.newsbtc.com/2020/05/27/tether-continues-tear-as-its-daily-crypto-transactions-reach-record-levels/

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[irixo10]

Many have always said they don't trust Tether while we all have every reason to because it is not decentralized  but as for me, it's a different thing altogether because I have not seen nor come across any problems with it  thus I continue using it. Talking about using it, it is only for trading or when the market is not friendly but for long term, I don't. Therefore, since it has been there all this years and still surging high I don't have any problems using it.

[mich]

After a Slow Start, Tether Sees Increasing Usage in DeFi

Tether (USDT) usage in decentralized finance (DeFi) appears to be growing, as lending protocol Aave reports over $7.2 million in USDT locked, out of a reported $60 million in total assets.

https://cointelegraph.com/news/after-a-slow-start-tether-sees-increasing-usage-in-defi

[mich]

Tether Integrates With Plasma Sidechain to Reduce Load on Ethereum

Tether has integrated the just-launched OMG Network Plasma sidechain, formerly known as OmiseGo, promising cheaper transactions as Ethereum’s fees skyrocket.

https://cointelegraph.com/news/tether-integrates-with-plasma-sidechain-to-reduce-load-on-ethereum

[mich]

Bloomberg: Only a Matter of Time Before Tether Overtakes Ether as #2

Bloomberg’s report that provides crypto outlook for June says that it expects Tether to pass Ether as the number two cryptocurrency on the strength of the dollar.

https://cointelegraph.com/news/bloomberg-only-a-matter-of-time-before-tether-overtakes-ether-as-2

[Iyanu14]

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

With my little experience, USDT as one of the reliable stable coins has been used largely by investors because of its stability.  Unlike other coins that can fall extensively in term of price, the fluctuations of USDT price is minimal and bearable.  That's investors store most of their assets in USDT and invest when the market is red.

[Balili]

Hi vlom,

Isn't that risky to hold money on an exchange? I lost a couple of BTC on MintPal, and almost lost some money on Cryptsy (had to sell coin for Doge at a bad price to get out). Since then I try to never keep money on any exchange (even if it's supposedly safe, like poloniex).

I really don't know about this question but I think it's a risk to leave such amount of money in an exchange basically in a low level exchange.

[Emilyearl]

I doubt if USDT is safe. I always feared the consistent printing of USDT from time to time. If this isn't backed by anything then it's a disaster to anyone investing in it because it's a stable coin and a stable coins should have a backing of either gold or bank reserve.

[mich]

Why Tether has printed $5 billion USDT this year

Tether CTO Paolo Ardoino says over-the-counter trading desks and crypto exchanges want dollars on hand, and this is driving up demand.

https://decrypt.co/31581/why-tether-has-printed-5-billion-usdt-this-year

[leea-1334]

I never saw it as safe not in 2017 with all the scandals becoming big and definitely not now when everything was seemingly getting out of hand with unlimited printing just like US dollar. Use it as a sort of hedge to hold value but never for too long. Need to also use it at an exchange you hope you can trust like Binance who insures your loss.

[mich]

Chinese investors secretly buying Bitcoin helped fuel Tether’s $5 billion surge

Who says Bitcoin’s most popular stablecoin is backed by nothing? A new report says demand comes from China.

https://decrypt.co/32041/chinese-investors-secretly-buying-bitcoin-helped-fuel-tethers-5-billion-surge

[mich]

Metrics show 80 percent of stablecoins like Tether and Binance USD are held by only six accounts

CoinMetrics analyzed the supply and activity distribution of the six most-popular stablecoins, noting most are issued on ERC20, have the same price (the USD), and end up serving the same end users.

https://cryptoslate.com/metrics-show-80-percent-of-stablecoins-like-tether-and-binance-usd-are-held-by-only-six-accounts/

[X-ray]

I doubt if USDT is safe. I always feared the consistent printing of USDT from time to time. If this isn't backed by anything then it's a disaster to anyone investing in it because it's a stable coin and a stable coins should have a backing of either gold or bank reserve.

If you are thinking usdt is not a safe coin and why there were so many people have been using it since it was created?
It's backed by the dollar but tether has already stated that it's not fully backed by dollars. Tether was printing money based on how much money that available on its hot wallet.

[jerrison]

if one converts his funds to crypto just to be in the crypto assest portfolio list, i will advise you keep the funds in tether since it is a stable coin but if it you want to gamble into the volatility of crypto prjects then i suggest bitcoin is best. I don't mean bitcoin to be a gamble, am only using the word gamble because, money used for investment in crypto is supposed to be money that can be called spare as it may be lost.

[kensaii]

The main point of stablecoin or Tether.to/USDT is to escape the volatile in crypto in general or bitcoin if you want to narrow down. Maybe back then, it was hard to grasp the concept of it and there are a lot of distrust but surely, after years we can see and find the benefit of a stablecoin like USDT.

[Galley]

Tether is probably the most stable coin for quite some time. There were, of course, questions regarding their financial component, but as far as I know, they were settled. I keep part of my savings in usdt and do not worry about this.

[Chuky92]

To the best of my knowledge so far, I think USDT is the best stablecoin to hold this is because of the number of people using it, its volume and maybe the reputation built over the years despite all the news or what was said about it. Also, let it be known to you that the main aim of USDT is to safeguard your funds from crypto volatility and nothing more, no matter how long you hold, it will never grow in price neither will it drop in value. Also, about going out of business, I think USDT has come too far to go out of business, however the crypto space itself is unpredictable and if you think you can't deal with holding for long then maybe Bitcoin should be the best.

[mich]

What’s Driving The Demand Behind Stablecoin’s $10B Crypto Market Cap Milestone?

The growth of stablecoins in 2020 has been unlike anything seen before. Each week, more and more of the fiat-backed crypto assets are printed, nearly as fast and as often as the Federal Reserve is printing new cash

https://www.newsbtc.com/2020/06/15/stablecoins-10b-crypto-market-cap/

[amos77978]

it seems like you're in need of a stable coin to hold your funds. while bitcoin and other alternative coins are in the red... if you dont trust tetyer, there are other alternative stable coins you can make use of, for me I make use of DAI most of the time instead of tether

[TanakabZX]

I've been using usdt for years now mostly in trading and keeping safe some USD to take advantage of the market when bears take over, it's safe using USDT and you have nothing to worry about