Which Stablecoin is the most Trustworthy?

[PrimeNumber7]

The most trusted and best stablecoin in my opinion is USDT, because USDT is the first stablecoin that appears, and has been integrated with almost all other altcoins, I have never had a problem with USDT, so USDT is certainly very safe

To be frank, out of all stable coins USDT is the worst. Haven't you seen the news about how USDT is in a long term battle trying to (never actually getting round to it) to prove that USDT is backed by USD??? Here's a link to an article that puts this into perspective: https://www.ft.com/content/529eb4e6-796a-4e81-8064-5967bbe3b4d9

This makes USDT the most untrustworthy stable I ever know. If you do anything, do your best to stay away from USDT, any other stable would do.

The article you cited was not very well written. My guess is it one of those "guest writer" similar to what forbes allows, and that often results in shadow paid advertising/shilling.

The chart referenced in the article is regarding all of tether's reserves, not just those of USDT. As such, they need to keep some of their reserves in gold to cover the XAUT they issue.

About 76% of tether's total reserves are in cash equivalents or things that money market funds will hold. There is an additional 12.5% that is backed by secured loans, while this is not as good as cash, it should be reasonable to believe the loans will be repaid on schedule based on their security. The risk for the secured loans is that >76% of tethers will be redeemed prior to the secured loans maturing....based on tether's history, this seems unlikely. About 10% is in "corporate bonds, funds and precious metals", some of this is what backs the XAUT tether has issued, and some of it will be bonds that have too long a maturity to be considered "cash equilvent".

Overall, I would consider any money stored in USDT to be safe.

[Blowon]

USDT is a centralized coin. I believe it can be trusted because usdt is long enough as a stable coin that can be trusted, I believe many people have transacted even tens of millions of dollars safely using USDT.

[very_452001]

USDT is a centralized coin. I believe it can be trusted because usdt is long enough as a stable coin that can be trusted, I believe many people have transacted even tens of millions of dollars safely using USDT.

Just because something is running for years does not make it legit.

Look at Enron, founded in 1985 and they screwed everybody over 16 years later in 2001!

[Valak]

Lets say for example that the auditors/regulators has found that USDT Tether has printed tokens out of thin air that are not backed by the fiat $dollars, from there what will happen to USDT on the basis of this news?:

- Is it possible for a stablecoin to crash to 0?

- Will centralised exchanges start delisting USDT in light of this news?

- What will happen to all of the USDT tokens in the millions of user wallets, become worthless?

- Will all decentralised projects smart contracts that used USDT in them be automatically cancelled/void?

For beginners the word Stablecoin sound stable 'no risks'.

What's the best decentralized stablecoin out there where you can earn interest on or stake it?

Otherwise which centralized stablecoin is backed by FDIC or SIPC protection policies?

If USDT or Stablecoins do not represent the equivalent value of USD, then Coinmarketcap has been providing incorrect information about Stablecoins so far. If USDT prints the number of coins but they don't have the fiat equivalent of the USDT they printed, then there is a possibility that USDT will drop, because they will not be able to accommodate the number of existing assets if other crypto users withdraw their assets from the exchange. And this is what crypto users have been wary of all along.

[Republikcoin.com]

USDT is a centralized coin. I believe it can be trusted because usdt is long enough as a stable coin that can be trusted, I believe many people have transacted even tens of millions of dollars safely using USDT.

Centralized actually also cannot be used as a strong reason to make a stable token trustworthy or not. Humans can only choose partners, with whom they work together to store digital assets.
Our level of confidence in Yobit compared to our level of confidence in Binance can serve as an easy example in the case we are discussing.
We all agree that Binance is safer and better than Yobit, which is why many people use Binance's services to do business.

The point is, no matter which centralized party releases the stablecoins, the most important thing to consider is how skilled the company is in managing the stablecoins.


So do you think the USDT has been handled by a specialist?

[ILuckyGuyI]

Tether (USDT) is at the 3rd place among all the cryptocurrencies according to Coinmarketcap data. I also think that it is one of the most credible stablecoins. But I feel myself a little closer to BUSD to be honest. Its being backed by Binance helps me trust it the most.

[very_452001]

What can we learn from the Iron Finance stable coin scam?

Even Billionaire Mark Cuban fell for this.

Is Iron Finance stable coin is a De-Fi decentralized coin like what Dai is?

If so how come something labelled as decentralized turn out to be a scam as we though its only possible for all scams to come from centralized entities   


Hi coming back here we like to know what if the SEC stance/regulations on stable coins in the upcoming weeks is negative, Can the SEC cause centralized stable coins like USDC to collapse because USDC is based in the USA where they are within USA jurisdiction law and must comply with SEC right?

What about other centralized coins like USDT tether and Binance BUSD and more that are not based in the USA and located in china/asia/east? Can the possible upcoming SEC regulatory negative stance affect these stable coins too, can the SEC have the legal power to go after these that are not based in the USA?

Finally what about decentralized stable coin Dai from MakerDao, if the SEC rules out and say MakerDao is a illegal unregistered security then will this collapse Dai to $0 even though its decentralized? The project team that created MakerDao, where are they based?

[moderator's note: consecutive posts merged]

[Kusman]

I don't know about what stablecoin would be the most credible. But the stablecoins that I trust the most are like this:

- BUSD
- USDT
- USDC

I use BUSD and USDT mostly in the recent times. And my reason to use a stablecoin is to keep some money into it when I don't want to invest into any cryptocurrency. I use the money for stablecoin staking mostly. Maybe it doesn't make me earn a lot of money but it is better than just staying at the same level. 

[Shohanur]

For me BUSD, USDT is okay to use and these are trustworthy. In my view, these won't go back to 0 because the reason of stablecoin. Many people are using these for a long time. It may up or down a little amount of price but as stable coin, BUSD, USDT are good enough.

[tabas]

Only a few looks to DAI. But you should guys use it as it is the decentralized stable coins in the market. While most that are very popular today, they're centralized.
Owned by an exchange.

[magnum1010]

Lets say for example that the auditors/regulators has found that USDT Tether has printed tokens out of thin air that are not backed by the fiat $dollars, from there what will happen to USDT on the basis of this news?:

- Is it possible for a stablecoin to crash to 0?

- Will centralised exchanges start delisting USDT in light of this news?

- What will happen to all of the USDT tokens in the millions of user wallets, become worthless?

- Will all decentralised projects smart contracts that used USDT in them be automatically cancelled/void?

For beginners the word Stablecoin sound stable 'no risks'.

What's the best decentralized stablecoin out there where you can earn interest on or stake it?

Otherwise which centralized stablecoin is backed by FDIC or SIPC protection policies?

I think that if auditors found that USDT Tether has printed tokens out of thin air that are not backed by the fiat dollars, it will definitely crashed, as everything is relies on trust, so if people don't believe in something, it will depreciate, so all holders of Tether will have a lot of unnecessary candy wrappers, so it is also possible for Tether to crash to 0.

[Cryptoababe]

I think DAI is the most trustworthy stablecoin just because its being used a lot in most DeFi Application or Platforms.

[very_452001]

Getting mixed responses in this thread saying USDT Tether is a scam or Tether is trustworthy otherwise why most people use it then 

Let me remind you guys a purpose of a stablecoin is to be always stable at $1 at 100% of the time except for black swan events when the price of a stablecoin may increase or decrease by up to 5% but still comes back to $1 stable price.

However if stablecoins crashes below 90 cents for more than a day then its a no longer classed as a stablecoin and this stablecoin will collapse to $0 as trust in its stability has been lost 

Lets say for example that the auditors/regulators has found that USDT Tether has printed tokens out of thin air that are not backed by the fiat $dollars, from there what will happen to USDT on the basis of this news?:

- Is it possible for a stablecoin to crash to 0?

- Will centralised exchanges start delisting USDT in light of this news?

Do not trust this centralized exchange, they will do anything just to stay on the good side of the government, the moment Usdt get some big accusations from the government, they will start delisting so they do not get questions as well. Remember what happened to ripple, they did not get the judgement go against them but already they were been delisted form all exchanges.

USDT is he worst of all the stablecoin currently trading in the market and very soon they will be exposed of all their shitty activities. I would not advise anyone transacting with them when there are better alternative out there like DAI etc.

So you think the SEC will bring a case against Tether like they did with ripple however the case against ripple hasn't crashed xrp to $0 because the case is still ongoing nearly a year now with no judgement from the judge in court yet.

How can the SEC bring a case against Tether when Tether is based in China out of the USA jurisdiction law? Even if somehow the SEC has launched a case against Tether then will the price still remain stable at $1 until the judge gives judgment against it which may take a year or longer depending the complexity of the legal case like ripple.


[moderator's note: consecutive posts merged]

[fadil46]

I think DAI is the most trustworthy stablecoin just because its being used a lot in most DeFi Application or Platforms.

If only for these two things, then DAI can still be beaten by other stablecoins in the cryptocurrency space, such as USDT, USDC and BUSD, because the three of them still have a better rating than DAI, which makes some people still tend to trust the three coins more than DAI.

[very_452001]

Only a few looks to DAI. But you should guys use it as it is the decentralized stable coins in the market. While most that are very popular today, they're centralized.
Owned by an exchange.

But the SEC is going against UniSwap a Decentralized exchange now. How is this possible when it suppose to be decentralized that is no headquarters or office of operations that can be targeted by the SEC?

On that note above what about decentralized stable coin Dai from MakerDao, if the SEC rules out and say MakerDao is a illegal unregistered security then will this collapse Dai to $0 even though its decentralized? The project team that created MakerDao, where are they based?


Coming back onto the stable coins is another purpose of them is if you hold them then no KYC is required because stable coins are not fiat currency. If you hold fiat currency the exchange might lock your account until you complete KYC. This happened to 1000s of traders on exchanges until stable coins came to remove this inconvenience because old existing regulations say no KYC is required on stable coins.

However... If the upcoming SEC new crypto regulation states if KYC is also required on stable coins then what's the point of stable coins as we might as well go back to fiat currency if we are all required to complete KYC.


Is TerraUSD UST truly decentralized and if so is better than Dai?

[moderator's note: consecutive posts merged]

[floridafranks]

I think both USDC and BUSD are great alternatives to the USDT and offer more  transparency than the latter.

[very_452001]

Do you think BUSD will get caught up in that Chinese Evergrande Contagion?

Why don't the Chinese come up with their own Stable coin denominated in their own currency instead of using dollars? Why always they choose £USD for their stablecoins? Im sure chinese exchanges like binance can offer trading pairs in their own chinese currency right? So anything happens in China wont take down the crypto market too

On tv news they saying Evergrande has $300 billion in debt too big to fail.

USDT has over $60 billion market cap not 100% backed by cash, is this too big to fail too for the crypto market?

If the chinese ccp government wont bail out evergrande then theres no chance in hell they will bail out USDT Teher  

[odukoyaewatomi27]

It is highly unlikely that this kind of news or policy gets released, however if it does there isn't really any stablecoin that i can trust because most of them are centralized in nature and anything centralized lacks full transparency DIA is a good alternative though due to its decentralized nature

[lovemycar]

Actually none mate. But among stablecoin Id keeping I always used BUSD on Binance as I know CZ cared for those breached and hacked so they will definitely make their security more secure and safe. I heard as well that they have insurance thats why he always say funds are $safu. Anyway just na opinion. But I do have some other stablecoin too. Among it usdt is most untrustworthy as they have some issues before and maybe have one again with sec that needs clarification.

LUSD，Decentralized stable currency.

All in all, I like and trust decentralized exchanges and wallets, and naturally trust decentralized tokens.

[dhemasm]

If only for these two things, then DAI can still be beaten by other stablecoins in the cryptocurrency space, such as USDT, USDC and BUSD, because the three of them still have a better rating than DAI, which makes some people still tend to trust the three coins more than DAI.

Depends, DAI was more used by crypto community and sometimes developers too and it's also offering maker protocol where everyone can produce their own DAI through collateralized some major crypto so it's offer more transparent reserve but even like that i'm not saying other Stable Coin was bad like USDT, USD, etc. It's depends on the user need but mostly they are all same so it's about their own choice.