Which Stablecoin is the most Trustworthy?

[batang_bitcoin]

LUSD，Decentralized stable currency.

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

I have not and never heard of this LUSD stable cryptocurrency. From what exchange or platform this came from?
I have used different stable coins like USDT and BUSD but really never heard of what you said.

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[Mpamaegbu]

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.

Perhaps I will begin to look in the way of DAI now that a lot of users are mentioning it. I'm a USDT person and I haven't had any issues using it despite the skepticism a lot of people have shown towards it. I will go for it even against BUSD except where I'm restricted to the Binance pair. Maybe my trust in USDT could be that was what I started with it and it was the viable option there was when the whole tether thing started. Honestly, come to think of it, it would be a sure disaster if USDT should hit a brick wall and then goes down to zero. I can't even imagine that happening.

[imstillthebest]

LUSD，Decentralized stable currency.

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

I have not and never heard of this LUSD stable cryptocurrency. From what exchange or platform this came from?
I have used different stable coins like USDT and BUSD but really never heard of what you said.

same here its also my first time to hear such stable coin but according to cmc it was a LUSD is the USD-pegged stablecoin used to pay out loans on the Liquity protocol
,  more info here : https://coinmarketcap.com/currencies/liquity-usd/

the coin can be found in uniswap v3 , 0xprotocol , 1inch , sushiswap , and  balancer . this stable coin has its own advantage over the other stable coins because it is decentralized and can be more trusthworthy compare to centralized stable coins .

[very_452001]

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.

All stablecoins suppose to function the same that is be stable. So when you say at the end depends of the user needs/taste and comes down to their choice. Stablecoins are all the same flavour so its not like I walk into mcdonalds and choose what what flavour milkshake I want because a chocolate milkshake is different to a strawberry milkshake.

All stablecoins are the same, the same flavour, the same stability but the choice should only come down to which one one is the most trustworthy that this thread is trying to find out.

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.

Perhaps I will begin to look in the way of DAI now that a lot of users are mentioning it. I'm a USDT person and I haven't had any issues using it despite the skepticism a lot of people have shown towards it. I will go for it even against BUSD except where I'm restricted to the Binance pair. Maybe my trust in USDT could be that was what I started with it and it was the viable option there was when the whole tether thing started. Honestly, come to think of it, it would be a sure disaster if USDT should hit a brick wall and then goes down to zero. I can't even imagine that happening.

Tether USDT collapsing will be like the Evergrande of Crypto unless the Chinese CCP or Hong Kong Government bails them out 

If Crypto gets bailed out by a Government/Central bank that that would be really embarrassing for Crypto because Crypto is suppose to be independent of the old legacy financial system. What's the point of Crypto then if this happens?

Stable coins are liquid so what do you mean when you say you have no issues with USDT when using it? There's suppose to be no issues with any stable coin because they are stable/liquid unless the stable coin is centralized meaning they can freeze your stable coin wallet.

All stable coins will work fine until trust is lost in them so this thread is to find the most trustworthy one.

Do you think the Federal Reserve bank will adopt one of the stable coins for their upcoming CBDC's or create their own? If they adopt a existing stable coin then which one you think this will be as this will indicate the last stable coin standing. Obviously they will adopt a centralized stable coin not a decentralized one but decentralized stable coin can still exist and be like the BitTorrent stablecoin of the internet.


There's 1 question I always like to ask.

Why centralized stable coin issuers based outside the USA always peg their stable coin to the $dollar instead of their own foreign currency?

I understand $dollar is the world reserve currency and the most popular currency pair in Forex but centralized stable coin issuers outside the USA bring more toxic risk to the whole crypto market if that issuer screws up because they pegged it to the $dollar that may not be backed up by real $dollars you know what I mean.

[moderator's note: consecutive posts merged]

[BobK71]

There are sever stable coin in the market which are very much renowned among them i especially corroborate USDT. Tether is a blockchain-based digital asset, pegged to the US dollar, so 1 USDT is always equal to $1. Exceptionally popular and low risk it works to keep crypto valuations stable and remains the largest, most secure and most widely used stablecoin. So according to my opinion USDT tether is the best stable coin in the crypto market.

[very_452001]

According to this link Tether has been fined $41million last week for lying :

https://www.bloomberg.com/news/articles/2021-10-15/tether-bitfinex-to-pay-fines-totaling-42-5-million-cftc-says

All those posts in this thread that favoured USDT tether, what is your stance on tether now?

Can tether print $41 million out of thin air to pay the fine?

We understand the courts and judges in the legal system are greedy and just want more money via from fines and don't give a f*** about the overall stability of the crypto market That's the SEC and FATF job to take care of the crypto market.

Paying this fine ends the tether FUD? or the SEC or FATF can open up their own case against tether in the future?

[TelolettOm]

I am a little bit confused here because I think that all stable coins are reliable.
But in fact, many people are not thinking like this.
And I commonly only use USDT and BUSD to ease transactions on exchanges. And then will convert it to BIDR.
But, I am actually quite worried about the problem faced by USDT, this has been a long time but still becomes like this.
However, what will exactly happen next?
If something happens to USDT, it means that we need to convert our USDT to other stable coins or cryptocurrencies, right?
Because the value of USDT is quite similar to other stale coins.

[PrimeNumber7]

https://www.bloomberg.com/news/articles/2021-10-15/tether-bitfinex-to-pay-fines-totaling-42-5-million-cftc-says

All those posts in this thread that favoured USDT tether, what is your stance on tether now?

Can tether print $41 million out of thin air to pay the fine?

There isn't any serious allegation that tether ever printed money out of thin air. The reason why tether had to pay the fine was that instead of keeping money it received from people buying tethers in a bank account, tether used the money it received from the sale of tethers to purchase things such as treasury bills and other safe bonds.

When someone buys tethers from tether, they generally do not intend to simply hold tethers, it is more likely for them to have the intention of using those tethers to purchase bitcoin or other cryptos. So I would expect the price of bitcoin to go up when tether issues large amounts of tethers. This is not unlike how I would anticipate the price of bitcoin to go up when people deposit large amounts of cash into their coinbase accounts, except amounts being deposited into coinbase accounts are not public, while the sale of tethers is public.

[very_452001]

https://www.bloomberg.com/news/articles/2021-10-15/tether-bitfinex-to-pay-fines-totaling-42-5-million-cftc-says

All those posts in this thread that favoured USDT tether, what is your stance on tether now?

Can tether print $41 million out of thin air to pay the fine?

There isn't any serious allegation that tether ever printed money out of thin air. The reason why tether had to pay the fine was that instead of keeping money it received from people buying tethers in a bank account, tether used the money it received from the sale of tethers to purchase things such as treasury bills and other safe bonds.

When someone buys tethers from tether, they generally do not intend to simply hold tethers, it is more likely for them to have the intention of using those tethers to purchase bitcoin or other cryptos. So I would expect the price of bitcoin to go up when tether issues large amounts of tethers. This is not unlike how I would anticipate the price of bitcoin to go up when people deposit large amounts of cash into their coinbase accounts, except amounts being deposited into coinbase accounts are not public, while the sale of tethers is public.

The other reason people hold tethers because that want stable price to avoid volatility in the crypto market. So a person will sell crypto for tethers for price stability especially before a bear market so its not just used for buying cryptos.

Is tether holding safe government bonds or high risk junk bonds?

[sovie]

The other reason people hold tethers because that want stable price to avoid volatility in the crypto market. So a person will sell crypto for tethers for price stability especially before a bear market so its not just used for buying cryptos.

Is tether holding safe government bonds or high risk junk bonds?

What you wrote is obvious, but stable coins also have other very important function.
When you sell cryptocurrencies and exchange them for fiats, in many countries you are obliged to settle each such transaction with the tax office.
Stable coins, despite the fact that they are the equivalent of fiats, are still a cryptocurrency, so transactions made on them do not have to be reported. This must be reported to the tax office only when you exchange from stable coin to fiat.
This is a great help for someone who does a lot of transactions.

[justdimin]

- 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?

Anything could be possible as all the currently existing stablecoins are centralized one and when any problem occurs then we cannot expect things to go as smooth as what we have right now. We do see many corporate are getting bankrupted for some reasons hence how we could expect those centralized will stay out of problems. So, stablecoins may get crashed to zero for any reason and then all your other three points may happen as a consequences to that.

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

Could you please link me on what is FDIC/SIPC. I just checked on google but I guess I must need some time to understand these better. Hope one day there will be a stablecoin by satisfying all these and in decentralized environment.

[meldrio1]

In my opinion if the stable coins are not backed by fiat dollars then possible it will crash to zero. The centralized exchanges will delists the stable coins for sure and it will become worthless in your wallet. So stick the popular stable coins like USDT, BUSD and DAI these are trusted stable coins.

[kensaii]

In my opinion if the stable coins are not backed by fiat dollars then possible it will crash to zero. The centralized exchanges will delists the stable coins for sure and it will become worthless in your wallet. So stick the popular stable coins like USDT, BUSD and DAI these are trusted stable coins.

You don't get it, most stablecoins in the market right now of course state that they're backed by USD. Whatever what they said is true or how much truth in that will have to be seen in the future. All I know is USDT used to get crashed to less than 1 USD per 1 USDT. That means something like stablecoins could well over the idea of stability.

[DOH!]

A stable currency is a very important ingredient for the market.  In keeping with the best considerations with criteria such as reserve transparency, volatility, velocity, ownership, Tether still accounts for the absolute majority.  Also, a lot of impressions in usdc, Busd, Tusd Although I fear there will be a big change in the stable direction of the coins in the near future.

All stable coins currently have a hard lock rate.  If the case does not lock, there is a greater chance of compliance.

[pjwaffle]

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?

I think anything can happen

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

This is very unlikely because USDT is one of the popular coins used and traded by many people, they benefit from major withdrawals so I think this is not. And I think stable coin is one of the important coins to trade in the market. Can't cancel if canceled, it's hard for us to have better similar options.

[Pamadar]

In my opinion if the stable coins are not backed by fiat dollars then possible it will crash to zero. The centralized exchanges will delists the stable coins for sure and it will become worthless in your wallet. So stick the popular stable coins like USDT, BUSD and DAI these are trusted stable coins.

Stablecoin support is only based on the value of the dollar currency, not supported by state regulations or through fiat directly, so you have to sort this out so you can better understand the support category, because dollar parties like America have not fully agreed about cryptocurrencies and USDT does not belong America.

Not backup with any government, stablecoin only based its value from the US dollar.

You need to make sure that you fully understand how this fiat reperesentative works inside crypto, There are many now to choose
with almost the same concepts but being introduce by different teams.

Make your assessment before choosing which stable coin to use if you wanted to avoid losing the value of your crypto during the dumped.

[Woodie]

I don't know about trustworthy because one of the biggest stablecoins we have in the industry is tether and it has a sketchy past which which might drag it into the not trust worthy coins but it still remains to be the biggest and most probably the most popular unless you decide to use tether based on other blockchains like the tron chain. And unfortunately am not so much of a stablecoin person so I have stuck to tether the original  stablecoin.

[WeedGoW]

I don't know about trustworthy because one of the biggest stablecoins we have in the industry is tether and it has a sketchy past which which might drag it into the not trust worthy coins but it still remains to be the biggest and most probably the most popular unless you decide to use tether based on other blockchains like the tron chain. And unfortunately am not so much of a stablecoin person so I have stuck to tether the original  stablecoin.

You're not only as many people in crypto also know about the shady past of USDT but still using it because it was the biggest fish of stable coins, for now. This is not a bad move as safety in number but still, I think people like you should also start to branch out to other trustworthy stable coins like BUSD because as always, never put all eggs in the same basket.

[Cornia]

There are so many stablecoin in crypto industry. Among them the most popular stablecoin is USDT, BUSD, DAI etc. USDT and BUSD are centralized stablecoin. But DAI is a Decentralized stablecoin. So i think DAI is the most trustworthy stablecoin.

[PrimeNumber7]

https://www.bloomberg.com/news/articles/2021-10-15/tether-bitfinex-to-pay-fines-totaling-42-5-million-cftc-says

All those posts in this thread that favoured USDT tether, what is your stance on tether now?

Can tether print $41 million out of thin air to pay the fine?

There isn't any serious allegation that tether ever printed money out of thin air. The reason why tether had to pay the fine was that instead of keeping money it received from people buying tethers in a bank account, tether used the money it received from the sale of tethers to purchase things such as treasury bills and other safe bonds.

When someone buys tethers from tether, they generally do not intend to simply hold tethers, it is more likely for them to have the intention of using those tethers to purchase bitcoin or other cryptos. So I would expect the price of bitcoin to go up when tether issues large amounts of tethers. This is not unlike how I would anticipate the price of bitcoin to go up when people deposit large amounts of cash into their coinbase accounts, except amounts being deposited into coinbase accounts are not public, while the sale of tethers is public.

The other reason people hold tethers because that want stable price to avoid volatility in the crypto market. So a person will sell crypto for tethers for price stability especially before a bear market so its not just used for buying cryptos.

I was referring to when someone buys tethers using actual dollars. These people are intending on buying either bitcoin or another cryptocurrency at the time they buy the tethers.

Is tether holding safe government bonds or high risk junk bonds?

I don't think there is any evidence tether is holding any junk bonds. I understand they are holding some corporate paper, as is common for money market funds.