Is empty wealth being created through stable coins?

[MrMoores]

has anyone noticed the 'minting' going on at these new stable coin developments?

I know this is kinda off topic but, when you check out these new 'outfits' some of the weblinks arent working and it all seems a bit iffy for a multi million / billion dollar operation (i'd say).

a transaction here: https://etherscan.io/tx/0x1b5150c6f8d9f2977b69c5898f62d11bd387985c089a39b36b02fc1398094711

is reference to a 4mil dollar 'creation' for wallett / address 0x00000000000

Wth is this?? Buying coins isnt smart, creating your own overnight bump coin and swapping it for BTC and ETH etc, creating fake wealth is where it must be at. Can i print Mickey Mouse Dollars and swap them for your BTC? It reminds me of that episode of Bottom where Ediie prints counterfeit notes with a face value of £12.45 (incl. a pic of queen with skirt over her head if i remember right heh)

What do you guys think of this?

Sincerly,

Crypto Amateur

[kzozenberg]

I think that the developers need to introduce tougher rules. That's not supposed to happen. I equate such actions as fraud on the part of the platform ERC-20 and coins that are printed without stopping !

[timerland]

In my opinion, stable coins are one of the most dangerous and shady assets that you can put your wealth in.

Firstly, stable coins represent fiat currency which is in itself something that has been historically depreciative.

Secondly, stable coins are not even actual fiat currency. There is no way the majority of the time for the investor to be 100% sure that the company issuing stable coins have completely full reserve all the time. And even if they can, there is no way of guaranteeing that the company will be willing to redeem their stable coins for fiat on demand.

So you're absolutely right. In certain instances of fractional reserve being used in stable coin issuance, which I believe is extremely probable for the majority of centralized stable coins, it is essentially no different than printing money out of thin air. It's only because stable coins are perceived to be backed fully and redeemable at all times does it have any value. But in reality, it's probably nothing like that.

[MrMoores]

Seems like a major cog in a 'tangible asset drainage system'

[Pikachu12]

I thought it was a money-printing action but I think the money-maker got money from someone. This is a fraud. If this continues, our market is in serious trouble.

[damberg]

Thanks for revealing this. Although I don't know the true purpose of above mentioned transaction, it looks shady at first sight. Does anyone here have a better understanding of the 'minting' in stable coins?

[cryptodv]

Sounds shady AF, that's why I'm bullish on Haven Protocol ($XHV). It's going to get rid of all these bullshit stable coin scams. Watch out Tether.

[BitHodler]

I remember that there was some serious discussion about Bitfinex and its post hack debt. The main point basically was that they created USDT out of thin air to compensate people for the coins they lost as result of their "hack".

If you think back, it's very suspicious how Bitfinex managed to buy out all of its debt that quickly, especially with how large the amount was. Back then they weren't the money making machine they are right now.

I know it's all speculation and there is no evidence to back it up, but you have to admit that it stinks. If they keep refusing balance audits they will keep stinking, its that simple. I will never use that exchange. Better safe than sorry.

[hatshepsut93]

Stable coins claim that they are backed 1:1 with their corresponding fiat currency, so when they mint new coins, this should mean that they have locked in the same amount of fiat money. But this is done in a centralized manner, we can't verify that they indeed hold that amount of fiat currency or that they won't break the rules at any given time.
To me stable coins look like fiat squared - fiat has value for as long as the government is willing and capable to support it, and stable coins are exactly the same, but they also depend on fiat.

[davis196]

Stable coins kinda remind me of fiat currencies back in the time,when they were backed by gold.
I guess that the time of speculative pump&dump altcoins is over,and the "stable" coins are the new big scamming scheme to get money out of the ignorant crypto noobs.

[PsylockReborn]

Even with the new system of technology which is a decentralized one, we are still being haunted by the corrupt system of centralization and its slowly taking over and influencing big companies in crypto space.
It's how they'll gonna make people believe that for every stable coin its been backed up by fiat. The real deal is to how to sell to people that idea and how many would bite that scheme.
Lucky are those who have much knowledge about the technology for they won't fall for those schemes legitimate or not.

[magneto]

has anyone noticed the 'minting' going on at these new stable coin developments?

I know this is kinda off topic but, when you check out these new 'outfits' some of the weblinks arent working and it all seems a bit iffy for a multi million / billion dollar operation (i'd say).

a transaction here: https://etherscan.io/tx/0x1b5150c6f8d9f2977b69c5898f62d11bd387985c089a39b36b02fc1398094711

is reference to a 4mil dollar 'creation' for wallett / address 0x00000000000

Wth is this?? Buying coins isnt smart, creating your own overnight bump coin and swapping it for BTC and ETH etc, creating fake wealth is where it must be at. Can i print Mickey Mouse Dollars and swap them for your BTC? It reminds me of that episode of Bottom where Ediie prints counterfeit notes with a face value of £12.45 (incl. a pic of queen with skirt over her head if i remember right heh)

What do you guys think of this?

Sincerly,

Crypto Amateur

What these stablecoins really are aren't cryptos at all, in my opinion.

All they are are IOUs issued by a certain company or organisation saying that we promise to pay you x amount of fiat on demand, which firstly is just completely unprofitable for users since they don't get any interest in storing their funds in fiat that they would usually get in banks.

But the more important aspect to this means that it gives the central entity which is issuing these stablecoins/tokens a chance to abuse their power and issue more IOUs than there is dollars backing it. Sure, it could work in the short term when everyone has faith in the asset, but in the long run there are bound to be issues with this sort of reserve system, and there is no way for investors to see if the IOUs they hold is fully backed. It is possible that some if not most entities that issue these assets are doing this, but there is no way of verifying.

[Vektrum]

Stable coins claim that they are backed 1:1 with their corresponding fiat currency, so when they mint new coins, this should mean that they have locked in the same amount of fiat money. But this is done in a centralized manner, we can't verify that they indeed hold that amount of fiat currency or that they won't break the rules at any given time.
To me stable coins look like fiat squared - fiat has value for as long as the government is willing and capable to support it, and stable coins are exactly the same, but they also depend on fiat.

By itself, the idea of creating stable coins is very good and I believe that they perform useful functions when working with cryptocurrency. We can’t say whether they are validated with ordinary currency, digital copies of which are and cannot be verified. Well, not everyone is suspected of fraud. While I am very pleased with the appearance of stable coins.

[wuvdoll]

Finally people are figuring out that all those tether and similar stuff are all bull shit.

It has no value and it makes no sense at all, if you really wish to have a dollar go get the real one not some token that represents it. There is no point of getting tether or usdc or whatever, they are all worthless and make no sense at all. I would like to also point out that all these exchanges that list these types of coins have something they profit from it.

The biggest privilege is that they can list tether or similar stuff that belongs to someone else and provide people with dollar option without caring about KYC or anything else and not even have bank accounts. Providing the dollar option without any bank interference is the best they get out of this. Not to mention the millions of dollars they profit from fee's.

[figmentofmyass]

Stable coins claim that they are backed 1:1 with their corresponding fiat currency, so when they mint new coins, this should mean that they have locked in the same amount of fiat money. But this is done in a centralized manner, we can't verify that they indeed hold that amount of fiat currency or that they won't break the rules at any given time.
To me stable coins look like fiat squared - fiat has value for as long as the government is willing and capable to support it, and stable coins are exactly the same, but they also depend on fiat.

they're essentially the 2.0 version of bank-issued notes. it's a lot like the wild west in the 1800s, before banks were federally chartered. shady banks used to issue poorly backed notes back then just like they do now.

Wth is this?? Buying coins isnt smart, creating your own overnight bump coin and swapping it for BTC and ETH etc, creating fake wealth is where it must be at. Can i print Mickey Mouse Dollars and swap them for your BTC? It reminds me of that episode of Bottom where Ediie prints counterfeit notes with a face value of £12.45 (incl. a pic of queen with skirt over her head if i remember right heh)

all we can do is guess when it comes to whether tether et al are just printing money. we're never gonna get an audit---tether has said so (which doesn't exactly bode well for their solvency).

bitfinex, being the only place that redeems USDT, also drastically raised their withdrawal fees to 3% if you withdraw > twice or > $1M per month. sounds like they're trying to discourage withdrawal requests......

[ralle14]

I think that the developers need to introduce tougher rules. That's not supposed to happen. I equate such actions as fraud on the part of the platform ERC-20 and coins that are printed without stopping !

Nah they won't do it. As long as they're making money through these stable coins they will always produce more.

What do you guys think of this?

Stable coins to me are like gift cards there's no max supply, they're only useful in a single place and their real value isn't 1:1 because once there's too much circulating supply traders can start dumping their stable coins for less. 

[1Referee]

Stable coins to me are like gift cards there's no max supply, they're only useful in a single place and their real value isn't 1:1 because once there's too much circulating supply traders can start dumping their stable coins for less. 

Stablecoins are useful on most exchanges, just not convertable to fiat on most exchanges. The latter part of your post does however apply to USDT, and perfectly so. Tether in a short period of time took like 700-800 million USDT out of circulation in an attempt to stabilize its price. No way these tokens were backed.

Looking back now, Tether taking that many tokens out of circulation should have been an initial warning for the price to go down. Even if these tokens weren't actually backed, it still means that a significant amount of money left the market. If you take into consideration that there was more supply than demand even with the tokens in circulation, it's easy to figure out what happens when these tokens aren't in the market anymore. Talking after the price has gone down is always easy, I know.

[yusupjatigumilar]

not adakoin has a stable price, because one thing that makes many people interested in investing in crypto currency is because of its aggressive price movements so that people can get big profits in a short time, and even then if they can take advantage of the opportunities well maximum

[BrewMaster]

they have been creating "fake money" out of thin air for years and it is not just stable coins. it is basically any new altcoin and tokens that have been created in the past 10 years without adding anything to the ecosystem.

do you think any of the ICO tokens were really needed to be created? how about the 5000-7000 different altcoins that have been created in the past years?
there is no reason for more than 90% of them to even exist but they were created and created wealth out of thin air.

[kryptqnick]

Stable coins kinda remind me of fiat currencies back in the time,when they were backed by gold.
I guess that the time of speculative pump&dump altcoins is over,and the "stable" coins are the new big scamming scheme to get money out of the ignorant crypto noobs.

There is a similarity, but it's even worth than that with stable coins. Backing up fiat by gold was actually not such a bad idea, because gold was an undoubtably valuable asset which allowed to avoid devaluation of money. I guess it was also fair that countries weren't allowed to just print whatever amount of money they wished, because with fiat you can never be sure when it gets busted, so to speak, and your money becomes worthless.
Backing us a coin by something that is also potentially worthless is just weird. I get it that people like how useful it is to sort of freeze investments by putting them into stable coins for the bullish market or to use them in trading pairs, but I think it's a risky idea.