[2019-03-14] Tether Updates site, Says USDT Backed by “Reserves,” Not Just Cash

[gentlemand]

https://bitcoinmagazine.com/articles/tether-updates-website-says-usdt-backed-by-reserves-not-just-cash/

As you may or may not have noticed Tether updated their terms in the last 24 hours. It's gone from the never proven 1-1 dollar backing to - “100% backed by [its] reserves.” It clarifies this vague language, even legalistic language, by saying these reserves “include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities.”

I can't say I'm massively surprised. I am massively disappointed by how big USDT has remained. After all this time there should be a less crappy alternative. It would be healthy to see some sort of resolution before another bull run. I don't believe it's the fully empty horror show some obsessives think it is. I would still prefer it to bugger off and die.

[JeromeTash]

USDT is really loosing it and it's just a matter of time before some other stablecoin replaces it on it's number one spot.

After last year's fiasco, The Block had reported that USDT's market share of stablecoins had massively plummeted  from roughly over 95% to around 70% in a period of just three months.

[figmentofmyass]

https://bitcoinmagazine.com/articles/tether-updates-website-says-usdt-backed-by-reserves-not-just-cash/

As you may or may not have noticed Tether updated their terms in the last 24 hours. It's gone from the never proven 1-1 dollar backing to - “100% backed by [its] reserves.” It clarifies this vague language, even legalistic language, by saying these reserves “include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities.”

beyond the obvious signs of fractional reserve ("receivables" acting as "reserves"), i'm guessing they are really feeling the heat from banks. it sounds like they're selling their dollars for other currencies and stores of value, probably in an effort to stay two steps ahead of regulators/law enforcement and keep their money hidden. it's almost like russia liquidating their USD to other currencies because of the sanctions.

I can't say I'm massively surprised. I am massively disappointed by how big USDT has remained. After all this time there should be a less crappy alternative. It would be healthy to see some sort of resolution before another bull run. I don't believe it's the fully empty horror show some obsessives think it is. I would still prefer it to bugger off and die.

the whole situation is obviously pretty tenuous. but i've got some love for these guys, shady as they are. tether is one of the only ways left to hedge USD value without giving up your KYC or getting your money frozen. bitfinex/tether are now like BTC-E was years ago---one of the only places left that's willing to give the USA government the middle finger.

[gentlemand]

the whole situation is obviously pretty tenuous. but i've got some love for these guys, shady as they are. tether is one of the only ways left to hedge USD value without giving up your KYC or getting your money frozen. bitfinex/tether are now like BTC-E was years ago---one of the only places left that's willing to give the USA government the middle finger.

I agree that the new crop of stablecoins is no substitute. The issuers are so fucking uptight you probably can't fart without being frozen out. There's got to be someone or something willing to make a stab at something similar to USDT that's as transparent as they can manage. Hey, maybe even Tether should try it.

[elda34b]

What a bad day for crypto. The most used stable coin is now not really backed by any provable things. They changes from unprovably fair to shady in truth. Looks like Bitfinex really tried to avoid many things, including providing real money to back their tether.

Sooner or later they'll probably lose their power in the market.

[ivaf]

Yes, a very ambiguous statement from Tether. Although, this could be expected. After all, they need to close somehow quite frequent audits. This change should help them. Now let's see how all this will affect the market value of the USDT.

[semes]

https://bitcoinmagazine.com/articles/tether-updates-website-says-usdt-backed-by-reserves-not-just-cash/

As you may or may not have noticed Tether updated their terms in the last 24 hours. It's gone from the never proven 1-1 dollar backing to - “100% backed by [its] reserves.” It clarifies this vague language, even legalistic language, by saying these reserves “include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities.”

I can't say I'm massively surprised. I am massively disappointed by how big USDT has remained. After all this time there should be a less crappy alternative. It would be healthy to see some sort of resolution before another bull run. I don't believe it's the fully empty horror show some obsessives think it is. I would still prefer it to bugger off and die.

The first and only advantage of being on the market was Tether's. At the moment there is only the advantage of being first. Bitfinex-Tether was the star duo of an era! But now there are a lot of stablecoins. In addition to being a coin now, there are stable tokens integrated into some networks. Even in the Tron network, one stable token was created. So after this time, tether cannot affect the market as deeply as it used to be.

[redsun114]

I am not a great fan of tether because i don't believe when they say their coin is backed by usd since we cannot actually see the bank account and the amount that was kept for making the coin a stable coin, but I can't deny that the coin has helped me a lot because i am a trader and always use the coin when trading between coins on exchange because the price of tether is always pegged to $1 and won't dump even if all the coin on the exchange dump in price.

One can actually make use of tether in place of USD fiat.

[dhemasm]

Wow, all this time I just found out that tether is backed up by reserves rather than fiat. Previously I thought USDT was fully backed up by Fiat. Tether has been widely adopted in many crypto markets and the statement on the website as you say made me surprised and a little disappointed, I was curious about how the market will respond. I mean, this makes it a bit of a horror. So for now, what stable coin is really "convincing"?

For future reference I keep their page here: http://archive.fo/kGalL


And the image here:

[miropp]

I've been using it for trading for quite some time. There was a lot of negativity, but it still shows itself well. I think if you haven't given up on USDT before, then don't given up on it now.