Tether's market cap is huge! (usdt)

[jackg]

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).

[Tushar Ramani]

You're right. The team has not even disclosed its price to remain $1. Here are a few points to look at the other side:

• 20B circulation with nothing backed
• No proof of funds either
• Banking partner on the Bahamas
• Lawsuits are pending
• No physical operation location
• Without any regulation
• Prints n x USDT like feds

I am worried about my funds in USDT. I think I have to move to USDC or BUSD.

[erikoy]

This because the investors now slowly realize that instead of converting their bitcoin to fiat currency it would be better to convert it to a stable crypto like tether. Well, it actually not a bad idea because an investor may be able to save money from the fees deducted in every transaction from the third party service like banks. High fees can be deducted compare to crypto to crypto conversion. It could save a lot of money especially if an investors has a huge bitcoin holdings during the conversion process. Even myself would use the stable currency to hold funds and wait again the best time to buy bitcoin.

[PerfectCircle]

There is no reason to convert your Volatility coins into fiat when we already have stable coins like USDT, USDC and DAI, I'm sure many people are just realizing that now, USDT is the most popular stable coin and some have a bad feeling about the stable coin because it's centralized, the fact is look around you, even decentralized coins aren't safe

[PerfectCircle]

The best advice I can give is never keep to high money in USDT, I heard that USDT can freeze address too making your stable coin useless but I guess that's because some people are using USDT to fund illegal entities, for safety reasons it's better to keep up to 10k with USDT only

[Oshosondy]

The best advice I can give is never keep to high money in USDT, I heard that USDT can freeze address too making your stable coin useless but I guess that's because some people are using USDT to fund illegal entities, for safety reasons it's better to keep up to 10k with USDT only

Tether do not just freeze addresses, they freeze it during scam accusation, a good last example I heard about was during kucoin exchange that was hacked, the scam address used was freezed by tether.

But tether do not have good reputation in the community, tether should not be trusted and people should not think about it being backed by anything, the coin is shady.

[figmentofmyass]

what's the latest on the loan from tether to bitfinex? the last announcement i can find is february 2020 where they repaid $100m. is there really nothing new since then?

• 20B circulation with nothing backed
• No proof of funds either
• Banking partner on the Bahamas
• Lawsuits are pending

i wouldn't say nothing backed. not fully backed, sure.

banking in shady jurisdictions behind shell companies ("like criminals" as giancarlo once said) is how they keep withdrawals flowing. it's a dirty job but someone's gotta do it.

i wouldn't pay the lawsuits too much mind. lots of frivolous BS there, just like the lawsuits against other exchanges.

I am worried about my funds in USDT. I think I have to move to USDC or BUSD.

that's reasonable. unfortunately for me, USDT is the only liquid stablecoin on some of the exchanges i use. USDC just isn't big enough yet.

[New_order]

I don't fully trust USDT but I still use it anyway since top exchanges like binance have confident using the stable coin, there is no exchanges that failed to list USDT on their platform as I know, all I can advice is to always keep small amount of money in USDT or other stable coins, nothing is guaranteed in this space

[Psynthax]

The rumours about their coin not really pegged to dollar in 1:1 ratio is kinda worrisome though. I don't really know how they could grow this fast though hopefully if I save up my USDT in some of exchange for just temporary if the worst case happening reveals that USDT gonna flop I could quickly exchange it to something else like ETH, BTC or another stablecoin.

To me, USDC is really promising nowadays but everyone still uses USDT. However, never trust privatized centralized stablecoin as you would trust decentralized exchange, just use it as you need it.

[Darker45]

But I wonder why USDT is still the most trusted stable coin out there, at least based on crypto exchange acceptance, trading volume, trading pairs, and so on. The controversies hounding this token have been around for years now and yet look at its daily volume. It has an astounding almost $90 billion 24-hour volume, way higher than Bitcoin's itself.

Years ago, it would have been understood why USDT is on the top of the stable coin list. It monopolized the stable coin market. Today, however, there are more reliable competitors and yet it seems only USDC managed to get relatively close. The next in rank, TUSD, is so far behind.

[mu_enrico]

It's widely known that USDT is huge, but I believe the most important (and scary) questions haven't been asked.
(1) Is it going to bust?
(2) What will happen to the crypto industry?

That's the sole reason I still doubt about $100k BTC.

[mindrust]

Tether would be the trigger for the Gox 2.0

It is possible that we are experiencing the upwards movement before the big dump. Hopefully not but going this high in such a short time frame is suspicious if you ask me.

In 2017/Dec when it was going up people thought it was going to go higher and higher forever till it hits $1m.   Then boom.

You don't wanna be on the wrong side of this when it  "Booms" (if it ever)

[AmoreJaz]

what's the latest on the loan from tether to bitfinex? the last announcement i can find is february 2020 where they repaid $100m. is there really nothing new since then?

• 20B circulation with nothing backed
• No proof of funds either
• Banking partner on the Bahamas
• Lawsuits are pending

i wouldn't say nothing backed. not fully backed, sure.

banking in shady jurisdictions behind shell companies ("like criminals" as giancarlo once said) is how they keep withdrawals flowing. it's a dirty job but someone's gotta do it.

i wouldn't pay the lawsuits too much mind. lots of frivolous BS there, just like the lawsuits against other exchanges.

I am worried about my funds in USDT. I think I have to move to USDC or BUSD.

that's reasonable. unfortunately for me, USDT is the only liquid stablecoin on some of the exchanges i use. USDC just isn't big enough yet.

i agree with that. usdt has some assets but i believe also, that theyre not fully backed. they already admitted it once, last year, about not being fully backed. they already lied once, so dont be surprised if they are still playing with us. so up until today, i have hesitations if they are now true to themselves about such having 20B of assets. it seems too much, i guess.
yeah, lawsuits? it is basically everywhere. and most of them are just being ignored. cant move forward because no one is seriously pursuing it. because no one can truly waste their resources with no assurance of what they will get as results.

[tabas]

They've backed it but there's no security that it's in full amount. Quite scary if something goes wrong with Tether because it will definitely affect the market again.
Just like how it affected bitcoin during its pumps then it has something to do again for its dumps.

[dothebeats]

Imagine if someone tipped the scales over and USDT comes falling down like a stack of cards. I get that it is ‘backed’ in some ways though idk if that translates to the entirety of its market cap or just some portion of it. Once something goes terribly wrong for USDT, see how it affects most of the crypto industry that relies on it to safekeep value when they are not trading cryptocurrencies themselves.

[jackg]

that's reasonable. unfortunately for me, USDT is the only liquid stablecoin on some of the exchanges i use. USDC just isn't big enough yet.

I can't use usdt on coinbase (they only have usdc and dai for most European investors - dunno if its different elsewhere).  Binance have put in efforts to list EVERYTHING THEY CAN FIND. that looks like a safe enough stablecoin. If a lot of people use coinbase when they come to crypto then I think usdc liquidity might see a rapid increase (which it should be able to absorb).

I don't fully trust USDT but I still use it anyway since top exchanges like binance have confident using the stable coin, there is no exchanges that failed to list USDT on their platform as I know, all I can advice is to always keep small amount of money in USDT or other stable coins, nothing is guaranteed in this space

A wise person might consider this shady practice. You can find spring water in vending machines priced at £1.50 but the free fountain next to it or any tap may produce the same type of water (the US sources a lot of bottled spring water from taps, Europe sources a lot of its tap water from springs ).

[Prince Malik]

You're right. The team has not even disclosed its price to remain $1. Here are a few points to look at the other side:

• 20B circulation with nothing backed
• No proof of funds either
• Banking partner on the Bahamas
• Lawsuits are pending
• No physical operation location
• Without any regulation
• Prints n x USDT like feds

I am worried about my funds in USDT. I think I have to move to USDC or BUSD.

I dont think you have to be worry at this point...maybe you are right in some points but you must not forget that tether is already on of the strongst coin in the crypto market and even if somthing bad will happen to usdt will not happen suddenly

[kolesozw]

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).

I recently noticed it too. In my mind Tether's market cap was 1-2bn and I was in a mini-shock when I saw it x10.

Imagine what will happens with the whole crypto ecosystem if Bitfinex screws the stuff.

[Sithara007]

I recently noticed it too. In my mind Tether's market cap was 1-2bn and I was in a mini-shock when I saw it x10.

Imagine what will happens with the whole crypto ecosystem if Bitfinex screws the stuff.

LOL. $1 billion was the market cap three years ago, in 2017. After that there was a steep increase. But most of the increase has occurred in 2020, when the market cap went from $4 billion to $20 billion. Worryingly, this means that at least some of the cryptocurrency users are holding their wealth in Tether, rather than using it solely for trading. It is just like holding your coins in exchange wallets.

[bits4books]

This because the investors now slowly realize that instead of converting their bitcoin to fiat currency it would be better to convert it to a stable crypto like tether. Well, it actually not a bad idea because an investor may be able to save money from the fees deducted in every transaction from the third party service like banks. High fees can be deducted compare to crypto to crypto conversion. It could save a lot of money especially if an investors has a huge bitcoin holdings during the conversion process. Even myself would use the stable currency to hold funds and wait again the best time to buy bitcoin.

But then you change an apple for an apple. You change the conventionally accepted means of payment for goods and services around the world to its full counterpart, but just in a different wrapper. Tether  (or any other stablecoin) can be printed as much as you want for the needs of the market - so the more BTC costs, the more users will need Tether and the more it will be "printed"...
You understand that this totally does not make sense? You just took and changed one wrapper to another and paid  fees for it, however essence remained the same.