Impact of USDT in the Crypto Market?

[bttmember]

As of today, Tether's USDT stablecoin is the world's third-largest cryptocurrency by market cap. It experienced an unprecedented rise since the COVID-19 outbreak took the world by storm. Some say that USDT is being massively pumped on the market by the Tether company itself. With shady operations such as lack of transparency, I wouldn't be surprised if USDT goes down the drain sometime in the future.

The real issue is not USDT itself, but rather its impact on the crypto market in the long term. For now, USDT has a positive impact over the crypto market due to the extreme hype surrounding stablecoins and "De-Fi". But if USDT is being artificially pumped, the effects won't last for long. Imagine if USDT goes all the way to $0 in the future due to a large government crackdown. It would turn out to be completely disastrous for the entire crypto market, since it's directly linked to stablecoins. At least, the downfall in crypto's prices will be in the short term. With USDT censoring people from getting access to their funds, anything could happen in the future.

What impact will USDT have in the crypto market over the long term? Will it be a positive or negative one? What if governments find out that Tether is a scam? Being the world's third-largest cryptocurrency in market cap, a full government crackdown will turn out to be a huge blow to the entire crypto/Blockchain space. Thoughts?

Usdt has been a great product and it has provided more options to investors and traders in the crypto market because now we can trade along with the fiat value in mind also usdt being fiat equivalent is a good source of alt or hedge against cryptos especially during bearish market.
I hope usdt will pass all the regulatory and compliance issues id and when arise otherwise it can be a big shock to the community.

[rz20]

I don't know why people do not give Tether the respect it deserves, I used to bash Tether like this before until the last bear market when I understand its role in the space, no company is perfect and the team never claim to be saint but it paves the way for stable coin market in the space, there is a reason why is still growing and people won't trust it to be holding it. The demand for USDT in developing countries is very high because people do trust it.

Well, I guess that mainly due to their lack of transparency and constantly printing $$$ some fear tether might collapse if someone from IRS audit their company. but agree we do need stable coins and right now USDT is the one that's accepted everywhere.

[holly.ball8]

I don't know why people do not give Tether the respect it deserves, I used to bash Tether like this before until the last bear market when I understand its role in the space, no company is perfect and the team never claim to be saint but it paves the way for stable coin market in the space, there is a reason why is still growing and people won't trust it to be holding it. The demand for USDT in developing countries is very high because people do trust it.

First time I heard about developing countries in demand of USDT and even trust it. They love and need the real dollars, aids and low-interest loan,... Their currency power already not so great in the ranking so I don't think they need USDT to jeopardize it further. USDT will stay and have a big impact since the first day it appeared to crypto, that's the only thing I can say.

[BitcoinTurk]

Unfortunately, the USDT has reached a very strong position in the cryptocurrency markets, and its effects can have serious consequences in this market. First of all, it should not be forgotten that in the bull season we experienced at the end of 2017, it was claimed that the USDT was issued unrequited and therefore the prices increased very abnormally. Yes, this claim may be partially true because the USDT supply was increasing at that time, and the response was not transparently reflected by the Tether company. For this reason, I think that similar events are happening nowadays and USDT has a serious influence on the crypto money markets. Finally, I would like to add that we often come across news that Tether company has printed USDT especially when there are serious price increases. Despite all these reasons and doubts, I think that no one will say that Tether has no effect on the crypto markets.

[Abiky]

The popularity of USDT signifies the importance of stable coin rather than importance of itself. Most of the users are still using it as there are no alternatives in most of the places and are no other stable coin that are so widely accepted. The another big advantage of USDT over other stable coins are it's cross platform nature and their easier interchange. That's a unique feature as more and more people are moving towards dapps and dex.

Good point. The rise of USDT on the crypto market could be largely attributed to stablecoin's popularity in the mainstream world. There's been hype surrounding "De-Fi" and stablecoins ever since COVID-19 took the world by storm. I think that after the pandemic ends, USDT will not be able to sustain a high market capitalization. Things look quite shady for Tether right now, as it issues new supply of coins on the Blockchain. If Tether doesn't provide proof of its USD reserves soon, it could be in big trouble. With many other centralized stablecoins available on the market right now, we could have a replacement for USDT if it fails in the future.

So far, many "De-Fi" dApps on Ethereum accept USDT for deposits. It's a universal stablecoin in the sense that it's available almost anywhere. That's not the case with competing stablecoins such as USDC and Binance USD. If USDT decays over time, we could expect a massive downfall in crypto's prices within the short term. A slow and gradual recovery will follow, leading cryptocurrencies to victory once more. I wouldn't worry too much about USDT as long as there are other alternatives on the market. Just my opinion

[Bananington]

But is it ever possible for USDT which is claimed to be pegged to the USD, to go down to zero in future? I doubt if it's possible, because if it ever happens, nobody knows what to expect. It's either it pumps Bitcoin hard since most people will switch to BTC or crashes the market massively due to fear of uncertainty.

[BuNga_cute]

As far as USDT conditions in the market are still safe, USDT trading volume is still the highest up to now. This proves investor confidence
against the USDT is very high, so for the long term I am still optimistic that the USDT will move in a positive direction. Very unlikely USDT
becomes a scams, because being the top 3 cryptocurrency in market cap has proven USDT is reliable and trustworthy.

[Denreal]

USDT would have been down when there were rumours I think in 2019 that it would be listed on the big exchanges in the crypto space. If you could remember very well then, the price went down and within a very short period of time, we saw a rise in price again, to its moral level. this is to tell yu that USDT is very strong and in many years to come, inasmuch as cryptocurrency generally is still in existing, USDT will continue to remain relevant.

[tycsols]

Tether is backed by big company and they claim to have satisfied the regulators in terms of 1:1 usdt to fiat usd holdings and the project has been given the green signal so it is legit and it is not going away and the legitimacy speaks for itself as you can check that usdt pairs have the highest daily trading volume which is already making usdt a monster and i think with growth in crypro market usdt will also gain volumes.

[Abiky]

As far as USDT conditions in the market are still safe, USDT trading volume is still the highest up to now. This proves investor confidence
against the USDT is very high, so for the long term I am still optimistic that the USDT will move in a positive direction. Very unlikely USDT
becomes a scams, because being the top 3 cryptocurrency in market cap has proven USDT is reliable and trustworthy.

Investors may trust USDT because of its high prominence in the crypto/Blockchain space. But there's more to it than "meets the eye". It's no secret that Tether's operations are shady. Being unable to provide transparency of its "USD reserves" has a lot to say about its legitimacy. There's no proof that Tether's USD holdings are what they say them to be (AFAIK). USDT may be another nail in the coffin, if the authorities find out the company is lying. This could negatively impact crypto's prices in the short term, as USDT is the #1 stablecoin on the crypto market. But at least, there will be other alternatives that will take USDT's place in the future. We already have a wide array of centralized stablecoins on the market which serve the same purpose as Tether USDT.

Let's hope that the stablecoin industry remains as legitimate as possible in order to attract institutional investors into it. Only then, "De-Fi" will become mainstream. There's a lot of room for growth, since stablecoins are only beginning to blossom. With a regulatory-friendly environment, centralized stablecoins will be here to stay for a long time. USDT or not, it's safe to say that stablecoins are the future of money. Just my thoughts