Tether's market cap is huge! (usdt)

[verita1]

The fact that USDT has yet to show support may worry anyone. But the high volume shows that there are investors who are preferring it to all stablecoins. Sincerely USDT maintains its controversy, time passes without any statement of endorsement of its funds. In view of this I would also choose another stablecoin and choose between DAI, GUSD and BUSD.

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[TheGreatPython]

Yeah, Tether is way overblown and it should not be this big, people have been using it freely for years now but I have always said that giving this much money and power to just one company is a big big risk that we should not do. Now it is at incredible levels and 4th in ranking, which means if tomorrow that company decides to say "we are closing shop, all your money belongs to us now" that would crash the market like never seen before.

I understand that they are making billions of dollars, so people think "why should they close it when they are making billions" but I still do not want to believe that people are not greedy and they are not idiots, obviously just like anyone in the world when this company sees billions in their accounts they must be thinking of just spending that and living like kings until they are caught and using that money to get out of jail.

[jackg]

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

Do you understand the concept of a market crash? Why wouldn't it suddenly crash and even if it slowly went down at what pijbt would you sell? 90 cents, 80, 50 (having lost hope it'll rebound).

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.

On its own, it doesn't.

The volume reported on cmc is 5x the available usdt. Assuming this ignores futures on exchanges then there might jot be many holders of usdt and some holders might be companies like binance also where users have set stop losses/buys (in both directions).

[jacafbiz]

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 don't think Tether team are stupid enough to claim they have $20 billion tokens without having anything to back it up. I believe they have some stash in Billion of USD but not 100% sure all the Tether tokens are backed. Where do you think the money used to pump BTC recently comes from or it was just pumped with air, this is the question you need to ask yourself

[Dragonfund]

The rate at which stable currency are minted is becoming scary particularly USDT, it's one of the most used stable coin in crypto space without much and proper auditing ( I don't know the last time we had one ) of this massive printings. It's going to be a suicidal and a slap on everyone face if government decide to crack down the used of stable coins which they have been against even by the central Banks. USDC that's even recognised in US doesn't mint tokens the way Tether is been generated every month, capitalization increased by 8X should be questionable.

I don't want to be anti stable coin, but will really happen when regulation bodies began to suspect USDT, it was once had a negative reputation in the past for manipulating Btc price during ICO maniac.

[Tushar Ramani]

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.

Yeah, unfortunately, liquidity is similar trouble to me. Major p2p exchanges here only provide USDT listing. So, we can store USDC and convert it into USDT whenever we have to encash. What do you think?

[Leviathan.007]

You are right, the team totally failed to stabilize the price many times at 1$ and they didn't clear anything about the amount of usd they have to back the price. Tether is getting dangerous because the team behind is showed us nothing to prove. The price was doped down to 0.8usd and this can drop again to even lower prices. In the other hand, other stable coins such as USDC is becoming more famous and seems more promising to me. I guess one reason of why usdt is used more than other is because of the popularity in the famous exchanges like binance.

[virasog]

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).

USDT is not to be trusted completely because it is not fully backed up by US dollar. But in exchanges we have very few stable coins and USDT is the most popular one. Still if you want to keep your fund for an extended time in dollars,  keep them in USD and not in USDT.

[sensimilia]

The majority of crypto isnt backed by anyhing, do you know it? They even dont promise for backing. However, people still investing in it

[wxxyrqa]

The majority of crypto isnt backed by anyhing, do you know it? They even dont promise for backing. However, people still investing in it

Generally speaking, if you are talking about all cryptocurrencies, then cryptocurrencies are valued due to their technical and functional features, and they are also valued due to a specific product that is presented to the public. but in the case of Tether, according to the team, almost 40% of these coins are still backed by real dollars.

[ser7878]

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 think its huge trading volume caused by people using it as a transition coin between selling one asset and buying another one.
Perhaps, there are people who truly believe usdt is going to fall shortly and they're running away from it.
But I won't believe in such thing to be honest.

[Smartprofit]

Essentially, tether is quasi-dollars.  Tether (USDT) capitalization is very large.  It depends on the price of bitcoins - the higher the price of bitcoins, the greater the capitalization of Tether.  

It surprises me that US regulators are not banning this cryptocurrency asset.  Regulators usually struggle with the proliferation of surrogate means of payment.  For over 3 years (since 2017), tether has been very popular in the crypto industry.

I read analytical articles that in 2018 the Chinese actively used the USDT cryptocurrency for cross-border payments (export, import).  

Tether is a stablecoin.  Unregulated stablecoins (in theory) should be the subject of close regulatory scrutiny.  However, tether continues to function and is not banned.  I cannot explain this fact.

[Karartma1]

My take on Usdt has always been the same, I've been consistently saying that tether is a ticking time bomb in the crypto world.
For what it's worth, IMHO tether is doomed. Whenever CDBC regulations will be set forth, Tether is about to explode. Don't worry though, Bitcoin will survive this event too.

[DooMAD]

Tether is a stablecoin.  Unregulated stablecoins (in theory) should be the subject of close regulatory scrutiny.  However, tether continues to function and is not banned.  I cannot explain this fact.

It is baffling.  Tether is effectively a digital recreation of the "Liberty Dollar" and they put a stop to that pretty swiftly.  This is some low hanging fruit and the regulators bizarrely aren't gunning for it. 

Maybe they're just biding their time for the right moment to strike?  It's the only explanation I can think of.

[coolcoinz]

This is what worries me. I'm quite sure of bitcoin's possibilities, its safety and all that, but if we allow private companies to produce tokens on massive scale and exchange it for bitcoins, we're taking a huge risk. If I told you now that I have a USD equivalent and I will give it to you for your bitcoins, would you believe me?
If I had an exchange and made a token accepted on my exchange, would you sell your bitcoins to me in exchange for that token?

When I put it like that most of you probably think that you wouldn't. What makes you trust people who make tether then? Those people said that they are backed and later were caught lying. Why do you still exchange your bitcoins into tether instead of choosing more transparent stable coins?

[Findingnemo]

Essentially, tether is quasi-dollars.  Tether (USDT) capitalization is very large.  It depends on the price of bitcoins - the higher the price of bitcoins, the greater the capitalization of Tether.  

It surprises me that US regulators are not banning this cryptocurrency asset.  Regulators usually struggle with the proliferation of surrogate means of payment.  For over 3 years (since 2017), tether has been very popular in the crypto industry.

I read analytical articles that in 2018 the Chinese actively used the USDT cryptocurrency for cross-border payments (export, import).  

Tether is a stablecoin.  Unregulated stablecoins (in theory) should be the subject of close regulatory scrutiny.  However, tether continues to function and is not banned.  I cannot explain this fact.

Their lawsuits are still in pending status but still people doesn't care about those things, all they concentrate on price of bitcoin and they convert their profits into USDT mostly because it is available on most of the exchanges compared to other stable coins which are actually better than tether. Sudden explosion of tether will affect the price of bitcoin extremely for sure so crypto users should move their funds store in stable coin has to convert them to completely decentralized coins.

[acquafredda]

The majority of crypto isnt backed by anyhing, do you know it? They even dont promise for backing. However, people still investing in it

I guess you don't understand art as it is not backed by anything, yet people still invest in art.
Wine is useless, yet people still fill their cellars with it.
The same goes for many other things which are not backed by anything, yet people invest in them.

[maxdin]

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).

Honestly, I've seen a lot of statements about usdt being a enormous scam project and as far as I know they're being sued or investigated on this matter.
I won't believe it until its proven so

[exstasie]

Yeah, unfortunately, liquidity is similar trouble to me. Major p2p exchanges here only provide USDT listing. So, we can store USDC and convert it into USDT whenever we have to encash. What do you think?

Good thinking. If you are just a casual holder/trader, and you are able and willing to use Binance, that's an option. They have the only relatively liquid USDC/USDT market: https://www.binance.com/en/trade/USDC_USDT

Not enough liquidity for whales or even mid-size traders though, and US residents can't use Binance, so it's not really a scalable solution.

[Stedsm]

Tether to me seems to be the scam of the century. I believe there are way too many better stablecoins like Binance's USD (BUSD) to convert into, but as I can see that it can't be used on too many websites (especially on gambling and casino sites which are mainly targeted by USDT users as well as probably no direct purchases) is the reason here why tether has been a big hit.