[UPDATED] PSA: Most Stablecoins Can Be Frozen, Even in Your Own Wallets

[mk4]

You forgot about the most popular network for Tether which is Tron. I have honestly never heard of anyone accepting USDT over Solana's blockchain, especially if we take into account that its network has a history of downtimes. The fees over Ethereum were often quite big, which caused people to migrate more and more towards Tron.

o_e_l_e_o makes a good point. Holding USDT makes no sense if you have a way to swap your bitcoins for fiat.

Solana actually has a more active blockchain in general compared to Tron despite the network downtimes. But yea, USDC is far more adopted than USDT on Solana. (source: Jupiter(Solana) and Sun.io(TRX) trading volumes)

[SquirrelJulietGarden]

Solana actually has a more active blockchain in general compared to Tron despite the network downtimes. But yea, USDC is far more adopted than USDT on Solana. (source: Jupiter(Solana) and Sun.io(TRX) trading volumes)

I don't choose Solana or TRON network especially Solana that shown its under capacity to handle high transaction demands on its network. Some downtimes occured and caused effects and loses for NFT investors on Solana. I don't discuss about NFT projects here because they are not good with their origins but Solana is responsible for the network technical problems.

Their developers can not blame that NFT projects have falls because of their bad ideas, bad models, bad use cases. Congestions then downtimes on Solana contribute a lot to panic and falls of NFT projects.

About USDT, if I want to move it, I will pick Tron and after I finish it, I will convert USDT TRC20 to BUSD on Binance Smart Chain.

If I don't use BUSD, I will choose fiat currency.

[nikola22]

so there are no reliable stablecoins for keeping your reserves without risks of loss? fully backed centralized stablecoins like USDC, BUSD and USDT could be easily frozed on request from regulators and other government agencies. partly backed and algorithmic stablecoins like USDD, Neutrino USD and USDX could lose peg during bear markets.

anyone can look at current situation on stablecoins: https://www.coingecko.com/en/categories/stablecoins

many of them don't feel good:

[dkbit98]

Just in: Tether freezes FTX's USDT holdings

Shitshow continues, and danger is even bigger if we know that Tether supply is mostly held on ethereum blockchain that is centralized, and it currently has 75% OFAC compliant blocks.
This means they can censor, block and freeze any address for any reason and without explanation, this is built in feature of ethereum PoS blockchain.

DAI can't be frozen, but DAI poses different risks(mostly depegs) as DAI is backed by ETH/USDC/etc. Totally up to you to weigh in the risks.

Maybe it's slightly better than other alternative in theory, but if it is still held on ethereum blockchain, and it is, than it can be censored and frozen at any time.

Solana actually has a more active blockchain in general compared to Tron despite the network downtimes. But yea, USDC is far more adopted than USDT on Solana. (source: Jupiter(Solana) and Sun.io(TRX) trading volumes)

This is probably all bots and fake transactions, and we all know this blockchain is 100% centralized so it doesn't really matter who is more active.

so there are no reliable stablecoins for keeping your reserves without risks of loss? fully backed centralized stablecoins like USDC, BUSD and USDT could be easily frozed on request from regulators and other government agencies. partly backed and algorithmic stablecoins like USDD, Neutrino USD and USDX could lose peg during bear markets.

I am really surprised how Neutrino USDN held up until now, since it is only backed up by Waves altcoin.
It's not safe to keep anything in USDN or any other stable coins right now, especially not long term... or you make wake up one day and find your money gone.

[nikola22]

I am really surprised how Neutrino USDN held up until now, since it is only backed up by Waves altcoin.
It's not safe to keep anything in USDN or any other stable coins right now, especially not long term... or you make wake up one day and find your money gone.

yes, USDN is still alive but the future of this stablecoin is uncertain. like the future of WAVES which is currently trading just above $2: https://www.coingecko.com/en/coins/waves
though on Mar 31, 2022 WAVES traded above $60. for now keeping funds in USDN even more risky than playing roulette.

situation with HUSD also looks strange. Huobi decided to delist HUSD and it plunged to $0.15. so if some major exchanges decide to delist USDT in order to promote their own stablecoins the future of USDT may be similar to HUSD.

[SquirrelJulietGarden]

so there are no reliable stablecoins for keeping your reserves without risks of loss? fully backed centralized stablecoins like USDC, BUSD and USDT could be easily frozed on request from regulators and other government agencies. partly backed and algorithmic stablecoins like USDD, Neutrino USD and USDX could lose peg during bear markets.

anyone can look at current situation on stablecoins: https://www.coingecko.com/en/categories/stablecoins

many of them don't feel good:

Many of stable coins in the list, on the market were launched in past two years. They have not been tested enough by customers and market especially bear market with serious negatively conditions.

Latest depegs of newborn stable coins are bad for anyone who owned it in their portfolios but it is good for the market generally. Because bad stable coins should be eliminated from the market by depegs or similar serious market testings with real conditions of bear market.

As I stated my opinion, I would prefer to choose fiat currencies if I want to store my capital too long rather than choose stable coins. Especially I never touch newborn stable coins.

[sima_sara]

to reduce chance of your tether being frozen, a friend suggested this:

1. receive bitcoin
2. convert it to BNB Bep20
3. send it to pancakeswap
4. withdraw it as tether on tron network


thoughts on this?   

[DrBeer]

The problem with stablecoins is that they "live" on the border of two worlds - the fiat world and the crypto world. This forces many of them to follow, follow unconditionally, all the requirements of regulators, financial structures of the state (state bank/fiscal system/....). And one of the rules of the fiat world is total control and management, including the process of blocking accounts. For this reason, blocking (freezing of wallets) and forced seizure have moved from the fiat world to the world of cryptocurrencies.
That is why PayPal USD smart contract has such mechanisms.
And the final will be the launch of CBDC - there will be absolute, total control..... But this is another sad story about how "everyone wanted blockchain and freedom, but blockchain and total control were born"

[Mauni98]

Just in: Tether freezes FTX's USDT holdings

Shitshow continues, and danger is even bigger if we know that Tether supply is mostly held on ethereum blockchain that is centralized, and it currently has 75% OFAC compliant blocks.
This means they can censor, block and freeze any address for any reason and without explanation, this is built in feature of ethereum PoS blockchain.

DAI can't be frozen, but DAI poses different risks(mostly depegs) as DAI is backed by ETH/USDC/etc. Totally up to you to weigh in the risks.

Maybe it's slightly better than other alternative in theory, but if it is still held on ethereum blockchain, and it is, than it can be censored and frozen at any time.

Solana actually has a more active blockchain in general compared to Tron despite the network downtimes. But yea, USDC is far more adopted than USDT on Solana. (source: Jupiter(Solana) and Sun.io(TRX) trading volumes)

This is probably all bots and fake transactions, and we all know this blockchain is 100% centralized so it doesn't really matter who is more active.

so there are no reliable stablecoins for keeping your reserves without risks of loss? fully backed centralized stablecoins like USDC, BUSD and USDT could be easily frozed on request from regulators and other government agencies. partly backed and algorithmic stablecoins like USDD, Neutrino USD and USDX could lose peg during bear markets.

I am really surprised how Neutrino USDN held up until now, since it is only backed up by Waves altcoin.
It's not safe to keep anything in USDN or any other stable coins right now, especially not long term... or you make wake up one day and find your money

Are you sure?
Many others say DAI cant be frozen.