Tether USD centralized token?

[karsyla]

https://www.marketwatch.com/story/stablecoin-issuer-tether-freezes-three-addresses-holding-160-million-of-assets-upon-law-enforcement-request-11642114717

https://www.theblockcrypto.com/post/129133/tether-freezes-over-1-million-usdt-single-address

2 cases this year alone.

Does it mean that this cryptocurrency token is centralized and it violates one of the most important fundamentals of cryptoccurency - decentralization?

What are your thoughts on this?

[mindrust]

https://www.marketwatch.com/story/stablecoin-issuer-tether-freezes-three-addresses-holding-160-million-of-assets-upon-law-enforcement-request-11642114717

https://www.theblockcrypto.com/post/129133/tether-freezes-over-1-million-usdt-single-address

2 cases this year alone.

Does it mean that this cryptocurrency token is centralized and it violates one of the most important fundamentals of cryptoccurency - decentralization?

What are your thoughts on this?

Yes it is centralized. It is probably not backed by real assets neither. Since they refuse to do an audit we won't really be able to know the truth until it collapses. If you are going to hold your crypto for a long time tether is the worst choice out of them all the crypto  out there.

If you keep your bitcoins in your own cold wallet no one can take it from you so don't use tether, problem solved.

[karsyla]

yeah those shady audits have been around for a while but this control of the transactions and tokens in the addresses is really unacceptable.

It just simply defeats the whole purpose of crypto IMHO.

[vv181]

https://www.marketwatch.com/story/stablecoin-issuer-tether-freezes-three-addresses-holding-160-million-of-assets-upon-law-enforcement-request-11642114717

https://www.theblockcrypto.com/post/129133/tether-freezes-over-1-million-usdt-single-address

2 cases this year alone.

Does it mean that this cryptocurrency token is centralized~

It always has been...

it violates one of the most important fundamentals of cryptoccurency - decentralization?

Depend on what you mean by "violates" and "cryptocurrency". A censored address or frozen address is nothing new, there was also an attempt to Bitcoin that some mining pool is censoring and won't process transactions that contains "bad coin". Anyway, cryptocurrencies do not defy centralization, and some cryptocurrencies could be centralized. So, there is no violation is going on here, and After all, the fundamentals of cryptocurrencies aren't set in stone, and there is no formal standard regarding what and how cryptocurrencies should behave.

[karsyla]

Depend on what you mean by "violates" and "cryptocurrency". A censored address or frozen address is nothing new, there was also an attempt to Bitcoin that some mining pool is censoring and won't process transactions that contains "bad coin". Anyway, cryptocurrencies do not defy centralization, and some cryptocurrencies could be centralized. So, there is no violation is going on here, and After all, the fundamentals of cryptocurrencies aren't set in stone, and there is no formal standard regarding what and how cryptocurrencies should behave.

well, decentralization is inherent in bitcoin.

[bitkanu]

https://www.marketwatch.com/story/stablecoin-issuer-tether-freezes-three-addresses-holding-160-million-of-assets-upon-law-enforcement-request-11642114717

https://www.theblockcrypto.com/post/129133/tether-freezes-over-1-million-usdt-single-address

2 cases this year alone.

The only problem is tether foundation didn't transparent with what reason to block those addresses from owning huge amounts of USDT. Is it ordered by regulators? Or is that involved in the criminal funds? this must be clear.

Does it mean that this cryptocurrency token is centralized and it violates one of the most important fundamentals of cryptoccurency - decentralization?

It does but this totally depends on the various thing like tether developers are putting the function to make them all able to freeze the funds but if there's no that function and it will not become centralized tokens. This totally depends with the code that already written on its smartcontract. How decentralized the asset depends on its code but it's still remain decentralized as it' using blockchain as protocol to be operated.

[karsyla]

developers are putting the function to make them all able to freeze the funds but if there's no that function and it will not become centralized tokens. This totally depends with the code that already written on its smartcontract. How decentralized the asset depends on its code but it's still remain decentralized as it' using blockchain as protocol to be operated.

Well this function clearly exists in Tether Smart Contract.

How a regular user can confirm that there is no such function in Ethereum for example?

[AmoreJaz]

Yes it is centralized. It is probably not backed by real assets neither. Since they refuse to do an audit we won't really be able to know the truth until it collapses. If you are going to hold your crypto for a long time tether is the worst choice out of them all the crypto  out there.

If you keep your bitcoins in your own cold wallet no one can take it from you so don't use tether, problem solved.

the OP is already full member and he/she is just realising now that usdt is centralised? and that is true, i guess, we will never know the absolute truth regarding their pegged assets. if some will remember, way back in 2019, they admitted that usdt is not fully backed - just have a quick read of this article . so up to you as a user or a holder, what will you believe now? usdt may be good for trading purposes but for long term holding, am not really up to it. just stick to btc if you don't know where to put your funds.

[coco23]

Depend on what you mean by "violates" and "cryptocurrency". A censored address or frozen address is nothing new, there was also an attempt to Bitcoin that some mining pool is censoring and won't process transactions that contains "bad coin". Anyway, cryptocurrencies do not defy centralization, and some cryptocurrencies could be centralized. So, there is no violation is going on here, and After all, the fundamentals of cryptocurrencies aren't set in stone, and there is no formal standard regarding what and how cryptocurrencies should behave.

well, decentralization is inherent in bitcoin.

Correct, almost all Coins and Tokens are subject to some centralization and anybody (exchanges, companies) could blacklist addresses as long as they are public. This is especially true for Stablecoins and I guess we will see this more often as soon the Stablecoin regulation comes on the agenda of governments.
While Bitcoin is pretty much de-centralized, don't assume that the crypto space is.

[vv181]

Depend on what you mean by "violates" and "cryptocurrency". A censored address or frozen address is nothing new, there was also an attempt to Bitcoin that some mining pool is censoring and won't process transactions that contains "bad coin". Anyway, cryptocurrencies do not defy centralization, and some cryptocurrencies could be centralized. So, there is no violation is going on here, and After all, the fundamentals of cryptocurrencies aren't set in stone, and there is no formal standard regarding what and how cryptocurrencies should behave.

well, decentralization is inherent in bitcoin.

It is, even the pool is keep going, there will always be others that process and getting through the transaction, assuming, Bitcoin maintain its mining decentralization. The point I'm trying to make is, just because the token doesn't adhere to cryptocurrencies standards does not mean it violates anything since cryptocurrencies do not have any formal standards.