The USDT problem

[SirArthur]

USDT is leaving some people unrest.
At a glance, it's basically fiat without a trustworthy counterpart, "magic money" at will.
What's your view on this subject and what consequences may be expected?

[1713504788]

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[jaysabi]

I wouldn't trust this in the least. It's supposed to be backed by real USD to maintain it's stable price, but where did the USD to act as a reserve currency come from? Their transparency page (https://wallet.tether.to/transparency) lists 2.15 billion tether in circulation, which means they have to have a reserve of 2.15 billion USD to hold in reserve. Does it seem likely to you that they have two billion dollars in reserve to keep the price stable?

It doesn't to me. Avoid like the plague. This has scam written all over it.

[SirArthur]

I don't think they can store such a value at a bank account, their whole business is shady and hard to explain. Also it was meant to be redeemable, means that you could transform them back to USD, which would cause your USDT to be destroyed, yet it seams no USDT was ever destroyed. Nobody would redeem it? Not even for curiosity? Suspicious, to say the least...

Sorry if I didn't properly explain myself, my point is about BTC markets. Due to this "magic money making machine" the market could be inflated and in the verge of collapse as soon as Tether collapses, a MtGox part 2.0.
Do you think this is a point of concern or the exchanges on "Tether steroids" won't be able to hurt the market?

[DesmondHayes]

USDT is leaving some people unrest.
At a glance, it's basically fiat without a trustworthy counterpart, "magic money" at will.
What's your view on this subject and what consequences may be expected?

There are doubts that Tether is being used to effectively match hundreds of millions of dollars of perceived value. These dollars are then again being reinvested into the Bitcoin to raise its value. This current incidents and accusations could lead to the Bitcoin demise for a very long period!

[btc2mars]

This USDT thing is becoming a little bit like a bitconnect now. it's more subtle but bottom line is, i don't like it.
It will eventually do a big damage to the crypto market as a whole.

[Hydrogen]

Looking at charts, the market cap of tether has decreased over time.

I'm still curious to know how they can "print money out of thin air, without limit" when their overall value is decreasing?

Unless better evidence is forthcoming. This may be a mainstream media fabrication. A smear campaign where facts are distorted and lies promoted to hurt bitcoin and crypto.

As far as I know, there isn't enough USDT in existence(or in circulation), for the media's claims to be true.

[Noospheres]

If you are a reasonable individual then you should have your doubts about Tether..

[raven7886]

I wouldn't trust this in the least. It's supposed to be backed by real USD to maintain it's stable price, but where did the USD to act as a reserve currency come from? Their transparency page (https://wallet.tether.to/transparency) lists 2.15 billion tether in circulation, which means they have to have a reserve of 2.15 billion USD to hold in reserve. Does it seem likely to you that they have two billion dollars in reserve to keep the price stable?

It doesn't to me. Avoid like the plague. This has scam written all over it.

But you need to think in different way. When we are having all the crypto currency with a fluctuating value why not we have some currencies with fixed value ? Because, we are believing in to some corporations who are all operating some services in the name of paypal or payza, now why not believing in to a crypto currency which is having similar purposes ?

In my view, USDT is nothing but an replica of paypal. Both are serving electronic format of USD. We are using them for different purposes hence there will be no harm of using USDT. But, we need to be always more conscious because any services may get shut down at any time.

[Anteros]

All they say about bank accounts is just their words. There is no proof that at least one dollar there really is.

[cryptotricks]

Tether doesn't add any value to the cryptocurrency world.

[Rafar8]

USDT is leaving some people unrest.
At a glance, it's basically fiat without a trustworthy counterpart, "magic money" at will.
What's your view on this subject and what consequences may be expected?

The bitcoin rate may drop several times if suspicions are confirmed in the scam of the most stable Tief USDT crypto currency. They are accused of the fact that tokens are simply "printed" without reinforcement with real money.

  Against the backdrop of the monotonous drop in bitcoin, it is not so noticeable, but at the end of January, the decline in the rate of the main crypto currency by one step, immediately down 10% (from $ 11,200 to $ 10,200), had a clear reason - after the news about the investigation of the Tether USDT crypto currency and possibly related to it Bitfinex exchange.

[RodeoX]

Tether is what happens when you "tether" good money (bitcoin) to shitty money (USD). 

[andamers]

I have always felt this is a very great risk, I do not think they can store such value in bank accounts, their entire business is dark and difficult to explain.

[alyssa85]

It looks like Bitfinex, which owns and issues Tether, is fighting back.

They have managed to get the twitter account of Bitfinexed, the guy who has been campaigning against tether, suspended.

The Bitfinexed guy posted on [reddit](https://np.reddit.com/r/Buttcoin/comments/7vv1gc/after_failing_to_spam_my_twitter_with_400000_fake/)

This is Bitfinexed.

My Twitter account is currently suspended, earlier I had about 20 tweets that were considered 'private' despite the fact that it's all public information (and some stuff that even the NY times has along with bloomberg, yeah so private), so they've been using bots to mass report my tweets.

If anyone has some sort of direct contact with Twitter that'd be handy. Likely just temporary.

Some people just don't like their scams being exposed.

It looks like Tether shills reported him.

[iiottel]

And no consequences. Fiat Dollar is also "printed" without any restrictions by indefinite persons. Many altcoins are also created without any mining. And while our world still somehow exists :-) At all times, human civilization fought within itself for the sovereign right to issue its coins. And the one who appropriated this right to himself without a convincing victory was always the object of the next attack.
In the crypto wold now is the time of scammers. And no one is able to prevent or oppose them. Wild west now.

[Arngrim]

It is the devilcoin inserted in the internet. 
We cannot get a hype now because of this.
That insight of people around here that tells when bitcoin is down then altcoin is up is gone.
Why? Because there is that easy withdrawal now with USDT. They can use it to get out.

So whenever there is a fall in bitcoin instead of turning it into altcoins that they support they will just bring it to USDT. A sad story now for all the crypto currencies.

[AdolfinWolf]

Tether doesn't add any value to the cryptocurrency world.

It's actually more useful then 90% of all the current cryptos in circulation, it offers a way out, when bitcoin is crashing etc. Like gold kind of is for the "real" petroleum dollar.

I don't think they can store such a value at a bank account, their whole business is shady and hard to explain. Also it was meant to be redeemable, means that you could transform them back to USD, which would cause your USDT to be destroyed, yet it seams no USDT was ever destroyed. Nobody would redeem it? Not even for curiosity? Suspicious, to say the least...

Sorry if I didn't properly explain myself, my point is about BTC markets. Due to this "magic money making machine" the market could be inflated and in the verge of collapse as soon as Tether collapses, a MtGox part 2.0.
Do you think this is a point of concern or the exchanges on "Tether steroids" won't be able to hurt the market?

While i agree with you that their operations are shady, ( I don't get why they won't do something like an audit by a third party). i don't see why a company as big as Bitfinex would risk losing all their users/customers for a couple billion, while their average volume is ~2 billion each day.


Also, something to note is that when they create/print the USDT and sell it ( for 1$ marketprice), it would automatically be backed 1:1  (although that would then be in BTC/other crypto and not $$, which means it could fluctuate alot).. -- right ?


There's an old audit report to be found here - > where there's an estimated backing of around 400 million? https://tether.to/wp-content/uploads/2017/09/Final-Tether-Consulting-Report-9-15-17_Redacted.pdf

[mybtcasset]

USDT became major threat to the cryptocurrency world we can see news about Tether every day and fake creation which has became more and more panic amount Tether manipulation and investigation

[Doell]

Probably the magic money and I still do not trust 100% otherwise if the holder is centralized and approved by an american state that holds the original fiat usd then ,I will trust and go further for a massive open investment well and I will more a focus

[crypto_futurer]

I would not advise you to keep your funds for a long time in this currency. So far, no cases of fraud have been identified, but it is better to insure yourself. For long-term storage, take bitcoin or withdraw money to fiat.