Tether's market cap is huge! (usdt)

[fullhdpixel]

Stablecoins are not even profitable so they are worse than the centralized coins. 1 USDT will always worth 1 USD so there is no way of making any profit at all by buying usdt, whereas let's say XRP is centralized that much we already know and has been proven in the last week, we could profit from it, buy xrp and if price goes up you earned some profit from it. Basically it is not the same thing but at least it is a bit closer to what the reality is.

Tether was created by Bitfinex which had to provide a trading pair to US dollar which was not possible back on that days. Even now to trade crypto to fiat you have to pass KYC and not all countries are eligable to trade like this. Instead, we have stablecoins that allow us to trade without any extra difficulties. On binance you don't even have to verify your account.
On that case traders got a stable trading paid while exchange is getting a huge trading volume that increase their profit.

Doesn't really matter in the end does it? I mean let's assume that you can't trade with fiat without KYC but you can with USDT, so you would prefer USDT a lot better because you do not have to KYC, and you did all your trading without giving a single ounce of information. What are you going to do when it comes to cashing out to fiat? You will still give out your KYC in order to be able to get that money on your bank account.

So, even if its just for one move (which is withdrawing) you still ended up giving your information, so if you are forced to give it during the last stage, why not use that for the all other trading as well? At the same time, if you really do not want to use your KYC or anything but not have to trust someone (in this situation bitfinex and tether), just go with things like DAI which is decentralized.

[mindrust]

Stablecoins are not even profitable so they are worse than the centralized coins. 1 USDT will always worth 1 USD so there is no way of making any profit at all by buying usdt, whereas let's say XRP is centralized that much we already know and has been proven in the last week, we could profit from it, buy xrp and if price goes up you earned some profit from it. Basically it is not the same thing but at least it is a bit closer to what the reality is.

Tether was created by Bitfinex which had to provide a trading pair to US dollar which was not possible back on that days. Even now to trade crypto to fiat you have to pass KYC and not all countries are eligable to trade like this. Instead, we have stablecoins that allow us to trade without any extra difficulties. On binance you don't even have to verify your account.
On that case traders got a stable trading paid while exchange is getting a huge trading volume that increase their profit.

Doesn't really matter in the end does it? I mean let's assume that you can't trade with fiat without KYC but you can with USDT, so you would prefer USDT a lot better because you do not have to KYC, and you did all your trading without giving a single ounce of information. What are you going to do when it comes to cashing out to fiat? You will still give out your KYC in order to be able to get that money on your bank account.

So, even if its just for one move (which is withdrawing) you still ended up giving your information, so if you are forced to give it during the last stage, why not use that for the all other trading as well? At the same time, if you really do not want to use your KYC or anything but not have to trust someone (in this situation bitfinex and tether), just go with things like DAI which is decentralized.

DAI don't fix this problem though. You'll still have to go through KYC when you want to get back to FIAT. DAI isn't protecting you from this scenario. Nothing does except the OTC trades or exchanges like bisq maybe.

We really don't know if somebody is demanding huge amount of tether's from BitFinex (I think not) and buying them for their real dollars, or Bitfinex is printing them away because the US lets them.

[fahmimajannat]

Yeah that's true. But some rumours have been leaked about usdt from last couple of months.
But i don’t know if its true or fake.
But many people has converted their usdt in other reliable tokens. Who knows what happens

[OpenCryptoSystem]

Usdt is usa future of commercial transactions

Sooner or later commercial transactions will be on stable coins 

And stablecoins are trusted becouse backed by banks.

[AmoreJaz]

Usdt is usa future of commercial transactions

Sooner or later commercial transactions will be on stable coins 

And stablecoins are trusted becouse backed by banks.

where did you get the idea that stablecoins are backed by banks???

Yeah that's true. But some rumours have been leaked about usdt from last couple of months.
But i don’t know if its true or fake.
But many people has converted their usdt in other reliable tokens. Who knows what happens

what rumour are you talking about? not having fully backed with US$s? guess, that's old news. remember, it was in 2019 that they admitted that they were not fully backed with USD assets? wonder, if they have that amount of money right now, considering its huge market cap.

[sapnu]

USDT does have a large market cap and is now in 3rd position and has succeeded in replacing XRP's position. This happens because USDT is
indeed the most popular stable coin and is widely used by investors. In fact USDT is listed on almost all exchanges, so it is only natural that
USDT trades volume over Bitcoin. I myself don't really believe in USDT, but I keep the profit from trading on USDT, because USDT is easiest
to find on any exchanges. But I also never kept large funds in USDT.

Tether is indeed on the top list on the market. The reason is that trading is now famous as a way of income for many people. And for them to trade tokens that they want, they are choosing USDT as their primary token before buying a particular token, since it is stable, it might change but not that big change. It is also the income of the trader when they are done trading, they are selling the token that they bought through USDT and they will sell it back to USDT.

[Sithara007]

I got my first cryptocurrency in 2014 and my involvement with crypto is now more than 7 years old. From my experience, I would say that I am not feeling very excited with USDT. Right now it's market cap is going up almost the every other day and everyone is happy about it. But eventually, there will be a scenario where the liquidation starts. People will start converting their USDT to USD or BTC/ETH, and this volume will be greater than the that from the other way around. At this point, it will be interesting to see how smoothly the process goes.

[OpenCryptoSystem]

Usdt will take over crypto

Usdt is king of crypto numbers do the talking ....
Btc marketcap is not even half of usdt

[DooMAD]

Btc marketcap is not even half of usdt

Wat?  I don't know if you're an alt account of cryptoboss2020 or not but you sound equally unhinged.

[error08]

USDT is a double-edged sword, while many exchanges use it as trade-pairs, yet the company issued usdt claim it is pegged to USD but the reserve to backed the value at best each USDT is backed by only $0.74 in cash and cash equivalents, and not even necessarily by physically USD, check this out https://wallet.tether.to/transparency
Tether formerly claimed that each token was backed by one United States dollar, but on 14 March 2019 changed the backing to include loans to affiliate companies. source
Until 2017, the companies Tether and exchange Bitfinex insisted there was no relation between the two but in fact, after the investigation on the operations of Tether, it's owned and operated by the same people. It is only a matter of time until we find out the truth of USDT sooner or later.

[exstasie]

USDT is a double-edged sword, while many exchanges use it as trade-pairs, yet the company issued usdt claim it is pegged to USD but the reserve to backed the value at best each USDT is backed by only $0.74 in cash and cash equivalents, and not even necessarily by physically USD, check this out https://wallet.tether.to/transparency

Look again. For all 4 "tethered" assets (USDT, EURT, CNHT, XAUT), they report full 1:1 backing. In some cases, they report holding excess reserves. They claim to have $162 million more USD than has been issued in USDT.

You can speculate that Tether is not fully backed, but you can't prove it with Tether's own reports.

[Sithara007]

Look again. For all 4 "tethered" assets (USDT, EURT, CNHT, XAUT), they report full 1:1 backing. In some cases, they report holding excess reserves. They claim to have $162 million more USD than has been issued in USDT.

You can speculate that Tether is not fully backed, but you can't prove it with Tether's own reports.

They have given out loans to their "affiliate" companies, and these loans are also included as backups. Now we don't know which are these affiliate companies and what is the risk involved here. It is perfectly natural to assume that at least some of these companies are going to default on the loan repayment. In that case, this claimed 1:1 backup will only remain on paper. And once again, these are figures as reported by Tether. There has been no independent audit by any third party.

[slapper]

At least right now, nothing has been exposed yet and most of the people still believe in Tether. And if Tether is shut down, it will leave a big scar on the cryptocurrency market since most of the big pair are based on USDT. It is true that up to now, they have not given any evidence that USDT is backed with dollars. Once SEC pays attention to them, we will be doom.

[mindrust]

USDT is a double-edged sword, while many exchanges use it as trade-pairs, yet the company issued usdt claim it is pegged to USD but the reserve to backed the value at best each USDT is backed by only $0.74 in cash and cash equivalents, and not even necessarily by physically USD, check this out https://wallet.tether.to/transparency
Tether formerly claimed that each token was backed by one United States dollar, but on 14 March 2019 changed the backing to include loans to affiliate companies. source
Until 2017, the companies Tether and exchange Bitfinex insisted there was no relation between the two but in fact, after the investigation on the operations of Tether, it's owned and operated by the same people. It is only a matter of time until we find out the truth of USDT sooner or later.

https://i.imgur.com/OWGJtlo.png

One of the assets that tether is backed by is bitcoin... and... bitcoin is backed by tether.



Nobody will be poor in this system. Yeah it will go on forever.

[exstasie]

Look again. For all 4 "tethered" assets (USDT, EURT, CNHT, XAUT), they report full 1:1 backing. In some cases, they report holding excess reserves. They claim to have $162 million more USD than has been issued in USDT.

You can speculate that Tether is not fully backed, but you can't prove it with Tether's own reports.

They have given out loans to their "affiliate" companies, and these loans are also included as backups.

They have, and in April 2019 they admitted to not being fully backed. But then Bitfinex did the $1 billion LEO token offer (raised in USDT to pay back the loan). As a result, in November 2019, they said they were fully backed by reserves again. https://www.coindesk.com/tether-says-its-stablecoin-is-fully-backed-again

Sure, they could be insolvent. But we also know the LEO token offering happened, so it's reasonable to assume that hole was plugged.

Personally I don't care either way. Holding any IOU from any exchange is a huge risk. That applies to Tether, but it also applies to a whole lot of other exchanges.

[Mighty_crypt]

I was scrolling through cmc and I didn't realise until now that tether has the 4th highest market cap at ~$20bn. This feels like a really high risk asset and that's probably reflected in it having a 5x market cap daily trading volume.

It's probably just something to take note of that if it isn't physically backed and we see massive volatile moves then don't trust it to peg the dollar especially if it keeps getting a higher and higher pool of funds that are thought to control it (its a shame a lot of sites use it in futures).

If DAI stable coin is the one that has this insane market cap will you say it's high risk asset? You people think that decentralized projects are the safest but you've forget that people operates them as well, if USDT make a run they can be hunted because everyone involved is known cos USDT was once in a mess before, but if it's a decentralized stable coin forget it....