How safe is Tether?

[BossBee]

How safe is it to hold your money in tether? It's based in Hong Kong and some of the terms and conditions are cringey. If something were to happen to it do you think polo and bittrex would honor your money some how?

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[Katja1234]

I am also wondering about Tether. I read a few articels about it and did not get a solid anwser about his saftey.

[Mallyx]

How safe is it to hold your money in tether? It's based in Hong Kong and some of the terms and conditions are cringey. If something were to happen to it do you think polo and bittrex would honor your money some how?

If any kind of issue happen with the mechanics of this token, you'll take the damages.
I'd to say it's not safe to hold your money on Tether.

[Kat_Slash]

At end of the day Tether is just a crypto. Do I need to say something more?
I dont trust Tether or any other asset coin.

[Herbert2020]

How safe is it to hold your money in tether? It's based in Hong Kong and some of the terms and conditions are cringey. If something were to happen to it do you think polo and bittrex would honor your money some how?

tether is mostly tied to bitfinex since the same company is behind both of them. polo and bittrex and others added tether since the trading volume increased a while back.

if that company (i think it was a bank) goes down or starts having any trouble the price of USDT will tank hard. we saw last year when bitfinex was hacked USDT fell down below $1 easily. so it is easy to lose money.
as for safety, they are clearly not guaranteeing anything! it is like most altcoins 1 USDT = 1 USDT. there is nothing saying 1 USDT = 1 USD and they certainly don't guarantee exchanging it for fiat!

in my opinion it is a good thing to use for short term like for holding your funds in fiat but not to rely on for longer. it is risky.

[sweerty1]

It is surely not very safe. If their company goes bankrupt basically you would lose your money quickly. Don't trust it as fiat money or bitcoin. It might be tied to USD but it doesn't mean it will stay always. I saw its prive lower than 1 usd around 2 or 3 months ago.

[Vaflia]

As far as I know, USDT is not secured by nothing other than the Bank accounts of developers, who by the way has not published data about what resources they have.

[nsasuiteb]

I don't think it is safe, in my opinion even it is not safe, there is just a company (startup) behind usdt, it should not be seen as digital usd. It may be better to hold bitcoin instead of usdt in the long term.

[Cnut237]

It is a risk like everything. But when the whole market is falling, do you risk using tether? I would say yes, but it's personal opinion. And it also depends on the amounts you're putting in. I wouldn't put all of my cryptocoin holdings into tether, but I would put some in.

[hase0278]

How safe is it to hold your money in tether? It's based in Hong Kong and some of the terms and conditions are cringey. If something were to happen to it do you think polo and bittrex would honor your money some how?

Like there it still have some risk holding your money on tether. If I were you I would hold my money on coins that have been on a low price for a period of time like waves. If something were to happen to it, polo and bittrex won't return your money be cause it is not their fault, it's tether's but if it is still sellable when that something happens sell your tether.

[HardFireMiner]

The process of Tether maintaining it's 1$ value from what I know is following:

User buys 1$ worth of tether -> Tether Network (Company, Devs) "prints" 1USDT
User sells his 1USDT for Fiat -> Tether Network destroys the printed USDT.

So, as long as the developers are doing what they say they do, Tether is safe.
But if something goes wrong, I don't know what can happen, expect the worst.

[biletskiy]

It is almost same like hold money in Poloniex or Bittrex.
1-2 month is ok, but not for long holding.
Conversely - bitcoin, etherium is good for long holding.

[coingrow]

If you look at the charts of Tether then you will realize that it has not always mainted the level of 1 tether equal to 1 USD. So that sums it up preety nicely. Stay away from it. I would not hedge all my money into this.

[sa3loo]

All Cryptocurrencys are at risk including tether
Nothing is guaranteed in Crypto world.

[cryptocrusher]

There is a risk with Tether like any other crypto. It is not backed by anything substantial and is only implicitly tied to USD, if something major happens then it would definitely drop below 1:1. Short term it can be worthwhile to trade in tether but long term I would advise against holding large amounts of tether.

[squatter]

How safe is it to hold your money in tether? It's based in Hong Kong and some of the terms and conditions are cringey. If something were to happen to it do you think polo and bittrex would honor your money some how?

No way. It's not safe at all. It's tied to Bitfinex -- they are owned by the same company. So Tether is subject to the same third party risk as Bitfinex. Indeed the terms are scary. Technically, your USDT is not redeemable for anything. In practice, you can't redeem it for real money either because Bitfinex/Tether does not have any fiat banking capabilities right now. I would not be comfortable holding USDT for long at all.

And no, Poloniex/Bittrex/Kraken/etc definitely won't honor your USD value if Tether goes down in flames. That's why they either don't have USD deposits/withdrawals, or they keep USDT as its own market (like Kraken).

[Samarkand]

[... In practice, you can't redeem it for real money either because Bitfinex/Tether does not have any fiat banking capabilities right now....

Tether recently released audits that show that they indeed have several
working banking relationships.

The more relevant question is if the banks they use are aware of the
nature of the business model of Tether.

[wpalczynski]

I've been using Tether for some time but only for short term trading. I would definitely advise against it for a long term investment.

[nexus2k14]

How safe is it to hold your money in tether? It's based in Hong Kong and some of the terms and conditions are cringey. If something were to happen to it do you think polo and bittrex would honor your money some how?

Today is the right day to answer your question with a perfect example how safe is to keep your hard earned money on any exchange or similar platform like Tether.

Tether says nearly $31 million worth of its digital tokens have been stolen after hack.

https://www.theverge.com/2017/11/21/16684296/tether-cryptocurrency-stolen-30-million-hack

It's not safe and never was and never will be.

[wxa7115]

How safe is it to hold your money in tether? It's based in Hong Kong and some of the terms and conditions are cringey. If something were to happen to it do you think polo and bittrex would honor your money some how?

It is not safe at all, at the end of the day it is just a cryptocurrency and like any crypto its value changes, they try to keep it close to 1 dollar but that has the problem that its value compared against bitcoin is decreasing in the long term, so you need more and more USDT to buy the same bitcoin, so it does not make sense to put your money there, it is better to put your money in bitcoin and hold bitcoin instead of USDT.