Tether is centralized, is it worth holding

[_act_]

I have noticed USDT to be the dominant coin on exchanges and this help in having the highest marketcap of all the whole existing stable coins. I am thinking may be because tether is centralized has been the reason centralized exchanges have liked it because they are centralized too. Check this out, it is about a recent USDT that has been frozen by Tether company.

Tether freezes $150 million in USDT
https://shibastore.co/tether-freezes-150-million-in-usdt/

I am afraid one day tether is going to freeze my coin or anybody's coin, the reason the coin that was frozen this year was frozen has not be known but may be it is a good reason, but I am thinking not to use USDT ever again because it is centralized.

What do you think about tether company having the power or ability to freeze any USDT of their choice. Is it a good idea?

[Bttzed03]

It's common knowledge now that USDT is centralized. Worth holding? No. I only use it for short them trades. Fiat is no better but I would rather have it because I'd be dealing directly with my local bank than some private company (Tether) registered in another country.

[livingfree]

For holding, choose DAI.

But for short trades, it's okay IMHO.

You choose other stable coins if you don't like to hold Tether because of its centralization but most of these stable coins are the same except the others that are decentralized like DAI.

[hugeblack]

Tether is a central currency for a while, and they also failed to prove that they are a pegged currency, meaning every existing dollar equals a dollar from the company, so that all their assets are less than 4%.

As a normal user, I don't expect your account to be frozen, but they can.

If you are afraid, there are some alternatives:

 - USDC: It is centralized but better than Tether and is well listed in many exchanges.
 - DAI: Central currency but cannot be frozen and listed in some exchanges.
 - BUSD: many be better than Tether ?!

[Jating]

I thought this is an old story already.

And regarding the question, it is worth holding? just like other stable coins out there, it is not design to be hold for long term. I mean at least in my case I used it to hedge any of my crypto, but that's it. I will withdraw immediately. So obviously it is very centralized and has very shady people from behind as well.

[Raflesia]

why hold on for a long time just for stable coins like this
Maybe for short term trading as well as to avoid the current market which is very irregular this kind of thing can be done but for holding especially for the long term I don't think such thing is good and not worth holding on to.
it would be better to hold some potential alts instead of them.

[Jackl87]

I have noticed USDT to be the dominant coin on exchanges and this help in having the highest marketcap of all the whole existing stable coins. I am thinking may be because tether is centralized has been the reason centralized exchanges have liked it because they are centralized too. Check this out, it is about a recent USDT that has been frozen by Tether company.

Tether freezes $150 million in USDT
https://shibastore.co/tether-freezes-150-million-in-usdt/

I am afraid one day tether is going to freeze my coin or anybody's coin, the reason the coin that was frozen this year was frozen has not be known but may be it is a good reason, but I am thinking not to use USDT ever again because it is centralized.

What do you think about tether company having the power or ability to freeze any USDT of their choice. Is it a good idea?

There have been discussions and arguments about USDT for at least a few months now regarding it's safety and other stuff. The mean reason for the concerns that many people are having with USDT is the fact that we can not be sure if every USDT that is minted is still really backed by a real USD anymore because back in 2019 they changed the wording regarding this very important factor. The official statement regarding this is now that they have enough reserves to cover every USDT minted, but nobody knows if those reserves really exist and no one knows what kind of reserves that they are talking about. I think though that most stablecoins are centralized.

[tyz]

What do you think about tether company having the power or ability to freeze any USDT of their choice. Is it a good idea?

I would never hold Tether long term, only short term for exchanges. I believe that there is a lot wrong with Tether and that all issued coins are not really backed by USD. If the bomb goes off at some point, I don't want to own Tether.

[takngantuk]

no, not worth hold, but still good enough to use. If you want to hold, I recommend using DAI, because stablecoins are more decentralized than tether. tether is only good to use not to hold funds for long, I've had some issues with their users in the past. and I don't want you to be one of them.

[mindrust]

If you are thinking about the long term, no tether isn't worth holding. Its price is pegged to USD anyway. Why would you hold it? As you realized, it is not decentralized neither. It can be confiscated. Hold bitcoin if you want to hold it for a long time. It can't be confiscated and it is decentralized. Tether can disappear any time, but bitcoin will live on no matter what happens. 1btc will always be equal to 1btc.

[sulis sudibyo]

What do you think about tether company having the power or ability to freeze any USDT of their choice. Is it a good idea?

no, there is nothing good about this. this is very detrimental to decentralization and very detrimental to their users. this is the reason why i don't like centralized system. tether is bad, and I don't recommend you use this stablecoin. I prefer to use DAI, although not too many exchanges support this stablecoin, but I think DAI is better.

[vv181]

I have noticed USDT to be the dominant coin on exchanges and this help in having the highest marketcap of all the whole existing stable coins. I am thinking may be because tether is centralized has been the reason centralized exchanges have liked it because they are centralized too.

I think liquidity may also play its parts here. It isn't merely the fact an exchange is centralized so they liked of how the way Tether is centralized. Regarding the USDT still being at the largest market cap, I believe market pairs which somewhat connected to liquidity, also have correlations, I also trying to figure out of how much an exchange accepts USDT over other stable coins but can't find the exact numbers.

I am afraid one day tether is going to freeze my coin or anybody's coin, the reason the coin that was frozen this year was frozen has not be known but may be it is a good reason, but I am thinking not to use USDT ever again because it is centralized.

What do you think about tether company having the power or ability to freeze any USDT of their choice. Is it a good idea?

If you are decided to stay away from it then it's good.

I believe the ability of Tether to censor some addresses is actually a good thing! I mean what can we expect from such a centralized entity, if someone didn't like the way the company behave or their lack of audit then simply staying away from it is a no brainer. There is a variety of options to choose another stable coin, so there is no reason to keep whining about it.

[Kavelj22]

What do you think about tether company having the power or ability to freeze any USDT of their choice. Is it a good idea?

You have already answer this question by the example you've provided. In addition, there are no guarantees that all the existing Tether is backed by real dollar as a reserve although exchanges have always confirmed this.

However, this is not the only reason for you to stop using this coin.
USDT was built at top of Ethereum as an ERC20 token, and you might noticed how much high the gaz fee for tokens in the ethereum network. Maybe i have also need to mention that this coin has a stable value

Even if you use USDT within exchanges as a trade pair, i advice you not to use it for large amounts.

[Fivestar4everMVP]

Well, ive never kept usdt for too long, though I trade a lot with it and some times, I pair it with other coins or token to provide liquidity on decentralized exchanges, but I don't leave it there more than 1 month.
Just like others have said, tether is best used for short term trades, since we now know it's centralized, and not just that, they also have power to freeze any body's money anytime, any day, so when it comes to holding for long, better to choose DAI which I believe is completely decentralized.

[Vaculin]

Tether is a centralized coin that has a fixed value, 1 tether = 1usd, so it's not worth holding as you only hold a coin that increases its value over time like bitcoin and altcoins which has a fixed supply. I only use tether for trading as that's the only purpose I find it suitable for me.

We have to understand first the value of the coins in the crypto space so we will know how to treat them.

[topbitcoin]

Holding for investment maybe no, but if there are no BIDR as fiat currency then i hold USDT in market. It can be useful for me because what familiar for me is USDT for now although maybe there are a lot of stablecoin in market. But mostly and easier for me to hold is USDT.

[WalkerIVIV]

I am afraid one day tether is going to freeze my coin or anybody's coin, the reason the coin that was frozen this year was frozen has not be known but may be it is a good reason, but I am thinking not to use USDT ever again because it is centralized.

I have been using USDT for years and i never encounter any problem with this asset and so far this is the safest asset to keep money reserved funds.
You have decided not to use USDT and then what's next? you have been answering your own question. Those frozen assets were related to the hacked cases. So many hacked cases happened and tether was securing their stable coins from the hackers.

What do you think about tether company having the power or ability to freeze any USDT of their choice. Is it a good idea?

It's not a problem and in some critical cases this function is very useful to make sure tether can do something once the worst case happen with any exchange site. This is also very helpfur for users who got affected by the hacked case

[FloridaKid]

Tether will only freeze your funds if you get them through unclean ways or from fraudsters, I've store 50k in usdt for months with no issue if your fund is clean you have no problem friend, usdt is reliable give it a try but if you want a better reliable stable coin go for BUSD

[Gorosden]

Don't get it twisted you won't make a penny holding USDT in your wallet because it's a stable coin, the only reason to hold this coin is to buy other coins that aren't stable maybe when there is a big dip in the market, I use USDC, UST, and DAI if you like decentralized stable coin go for DAI

[zasad@]

I have noticed USDT to be the dominant coin on exchanges and this help in having the highest marketcap of all the whole existing stable coins. I am thinking may be because tether is centralized has been the reason centralized exchanges have liked it because they are centralized too. Check this out, it is about a recent USDT that has been frozen by Tether company.

Tether freezes $150 million in USDT
https://shibastore.co/tether-freezes-150-million-in-usdt/

I am afraid one day tether is going to freeze my coin or anybody's coin, the reason the coin that was frozen this year was frozen has not be known but may be it is a good reason, but I am thinking not to use USDT ever again because it is centralized.

What do you think about tether company having the power or ability to freeze any USDT of their choice. Is it a good idea?

Stablecoins and Blacklists
https://bitcointalk.org/index.php?topic=5247581
I have been following this topic for a long time, if you want to keep money in stablecoins, then diversify your portfolio. Store less in USDT and more in USDC and DAI.Thanks for the new article.