About USDT

[cryptomaniac_xxx]

Please correct me if I got it all wrong, audited projects are projects that have passed some security checkup right? As a newbie I kinda like investing in projects that are audited atleast so back to my question, USDT is the biggest stable coin right? When I tracked it on coinmarketcap I found out that's it passed audits through Certik and Fairyproof, why haven't this clear the rumour that USDT might fail someday? Because it's Centralised? If that's it then why DAI ( decentralized stable coin) haven't grow over USDT all this while?

They once refused to be audited and then we have a lot of complains and says that they run on fractional reserves. I'm not familiar with the audits that you have posted, but as far I can remember, they still have a existing case coming from the US government.

Again the reason that it might fall someday is that it is rumored that it run on fractional reserves just like bank. So if investors or traders withdraw then it could run empty.

[tvplus006]

There are rumours surrounding USDT since a few years now and they are just not going away. The reason for that is, that the company behind USDT changed the wording regarding their backing of every USDT minted. In the beginning they always said, that they have enough real USD to back every USDT minted, but now they are saying that they have enough reserves to back every USDT minted. The problem is, that no one knows if those reserves really exist and in what form they exist.
I think certik and fairyproof only audit the code and not stuff like reserves.

This may be explained by the fact that part of the reserves are bitcoins that were purchased for USDT. I can assume that other top coins may also be stored as reserves. But these are just assumptions and due to the fact that the Circulating Supply USDT is about $80 billion, I would like to see more open information about what exactly provides such a large amount of stablecoin.

[Marvelman]

... If that's it then why DAI ( decentralized stable coin) haven't grow over USDT all this while?

The benefit of DAI is that it is all code, there is no business/party that controls it, and that's nice. The downside is that since there are no parties actively controlling it, it is at more risk of losing its peg to the dollar. If we look at the charts we can see that DAI tends to fluctuate a bit more than USDT/C because it is not under the control of a central authority.

[yazher]

You need to do some research on USDT, in this world once you managed to stain your name it will forever be a stamp, Tether team have onced faced the law due to their conning act in the past that's why some don't believe in this stable coin, secondly it's a centralised stable coin, for some that's enough not to trust.

This is how the bad part is when you wanted to invest or use it as an alternative to fiat when it's hard to convert your crypto to fiat, you don't know when it will gonna turned worse when its team decided to freeze all of the funds. You can use it as an alternative but you need to remember that you can't hodl it for long because it is centralized. ANy centralized coins cannot be hodl for so long because the developers can still turn the table and freezed your assets.

[fuguebtc]

Please correct me if I got it all wrong, audited projects are projects that have passed some security checkup right? As a newbie I kinda like investing in projects that are audited atleast so back to my question, USDT is the biggest stable coin right? When I tracked it on coinmarketcap I found out that's it passed audits through Certik and Fairyproof, why haven't this clear the rumour that USDT might fail someday? Because it's Centralised? If that's it then why DAI ( decentralized stable coin) haven't grow over USDT all this while?

Auditors only check the security of the project, they cannot guarantee that the project is not a scam. USDT is the first stablecoin on the market to be converted 1:1 USD. Out of all the stablecoins currently on the market, USDT is the most centralized and although there are always allegations of market manipulation and money laundering surrounding it. but it is still the most used stablecoin on exchanges. If USDT crashes, it could send the crypto market into crisis. something that no one dared to think about.

[mindrust]

Please correct me if I got it all wrong, audited projects are projects that have passed some security checkup right? As a newbie I kinda like investing in projects that are audited atleast so back to my question, USDT is the biggest stable coin right? When I tracked it on coinmarketcap I found out that's it passed audits through Certik and Fairyproof, why haven't this clear the rumour that USDT might fail someday? Because it's Centralised? If that's it then why DAI ( decentralized stable coin) haven't grow over USDT all this while?

USDT had never any audits. Never, none. Whatever you see on coinmarketcap is a lie.

Yes it is centralized and they can freeze funds but that should be your second concern. Nobody knows if the tokens are actually backed by any real assets. It is impossible to verify this unless some 3rd party well-known auditor audits them and so far it didn't happen.

[Marvelman]

Please correct me if I got it all wrong, audited projects are projects that have passed some security checkup right? As a newbie I kinda like investing in projects that are audited atleast so back to my question, USDT is the biggest stable coin right? When I tracked it on coinmarketcap I found out that's it passed audits through Certik and Fairyproof, why haven't this clear the rumour that USDT might fail someday? Because it's Centralised? If that's it then why DAI ( decentralized stable coin) haven't grow over USDT all this while?

USDT had never any audits. Never, none. Whatever you see on coinmarketcap is a lie.

Yes it is centralized and they can freeze funds but that should be your second concern. Nobody knows if the tokens are actually backed by any real assets. It is impossible to verify this unless some 3rd party well-known auditor audits them and so far it didn't happen.

USDT is nothing more than a ponzi scheme supported by currency pairs on some of the largest exchanges. That's about the best that can be said about it. Stablecoins require the contract issuer to be able to back the contract up with the corresponding amount of assets. The major portion of USDT's balance sheet is backed by jack shite. If it was regulated like a bank, it wouldn't even be considered solvent.

[tvplus006]

Now it has come to my attention that audits are nothing, they are nothing but mere reviewers, don't go around thinking that a verification as been passed through these audit platforms they are not reliable... From now on erase them from your minds.

I have come across such information that errors in the smart contract, which are detected at the audit stage, may later be used to steal coins. I do not know how accurate this information is, but I admit that this may happen in reality.

[macson]

As a newbie I kinda like investing in projects that are audited atleast so back to my question, USDT is the biggest stable coin right?

I don't like USDT and I don't believe that it's properly backed. There were a lot of controversies on the topic, but I stopped following all the relevant news. So.. be careful.

i don't like USDT either.... i prefer DAI or BUSD!

USDT is normally a pretty good tool for traders, but imho not that much suitable for investing/holding, since you won't gain anything.
(Of course, if you want to hold USDT only in the days Bitcoin price is dropping, then it's a different story.)

agree... stable coins are not very suitable to be used as long-term investments, more comfortable to use for trading ^(scalping) 

[Kavelj22]

They once refused to be audited and then we have a lot of complains and says that they run on fractional reserves. I'm not familiar with the audits that you have posted, but as far I can remember, they still have a existing case coming from the US government.

If i can remember, Bitfinex (first creator of USDT) claimed to have USD reserve for all the created tokens then suddenly cyber authorities discovered that the generated USDT is created from thin of air which even caused an inflationary supply. I don't remember how the case was solved while i remember how many platforms started lunching their own stable coins including USDT itself which actually developed in many versions through different networks.

[7788bitcoin]

You need to do some research on USDT, in this world once you managed to stain your name it will forever be a stamp, Tether team have onced faced the law due to their conning act in the past that's why some don't believe in this stable coin, secondly it's a centralised stable coin, for some that's enough not to trust.

They strained the name without being transparent and yet even now they are not able to clear everything and be transparent. The law will catch up with them if they are not able to provide the audit report since they are minting dollars whenever they feel like and yet they are not able to provide the transparency in collateral they use. Earlier they used to claim that it is pegged to 1:1 in USD but later it is proved that it is not the case.

[kotwica666]

*SNIP*

Everything you wrote is correct.
Investing in currencies that are centralized always comes with risk. Exactly the same goes for Ripple.
As for why decentralized stable coins have not been as successful as USDT, I think the point is simply that the USDT has been around longer and is more popular.
The same is the case with Bitcoin, although there are coins that are more technologically advanced, but Bitcoin is still the king of cryptocurrencies. This is because it was just the first and it is more recognizable and popular. I think it's exactly the same with USDT and decentralized stable coins.

[Ararbermas]

Actually there is alot of information around the internet @Op that can answer to your question above if you have time to make even simple research.

And yes that's true and its been rumours for how many months now that  Usdt (Theter) might fail but seems its not gonna happen anymore..

Infact i am a usdt(Theter) user as well and i am not scared tho about such information until now because i used to keep my money from the volatility using their network since i heard that news..  

[VRExpress]

The USDT audit part just pop up on coinmarketcap no one knew how this happened, if that audit was real we would have seen the news online I think that's a fake audit so don't choose that part.

[Flexystar]

I dont like Tether USDT one bit. Kinda like its being controlled and can have its backup or peg pulled anytime and I would be left lugging around a worthless token. So thank you very much I would go for DAI or even USDC. BUSD is somehow like USDT

Yep, they are more or less better options. In fact with so many stable coins coming to the market I do not think one should be wasting the bit of money on to USDT. Though they have grown mega company and gives us little strength in terms of asset not falling real soon. I do believe that other coins like DAI will grow into the bigger market asset and we may not need to rely on the USDT itself. However, they do make it perfectly fine in terms of fees and quick transfer. The same thing would take up lot of gas fees for other coins. I’m not sure what’s the story behind DAI but stability comes with value as well as transaction fees and speed.

[dezoel]

In this case I will use Bitcoin and Ethereum as an example: both Bitcoin and Ethereum has been the undisputed biggest two in the market for a very long time now, and among these two big coins in the market, there are people who thinks that Ethereum should be topping bitcoin in the market, but that hasn’t been the case, in fact Bitcoin keeps having more dominance in the market compared to Ethereum. The reason for this is because Bitcoin is the first Cryptocurrency in the market.

So, why Dai would find it difficult to beat USDT is because USDT is the first stable coin that was created. It’s having that same first-comer advantage that bitcoin has, over every other stablecoins in the market.

[timerland]

Please correct me if I got it all wrong, audited projects are projects that have passed some security checkup right? As a newbie I kinda like investing in projects that are audited atleast so back to my question, USDT is the biggest stable coin right? When I tracked it on coinmarketcap I found out that's it passed audits through Certik and Fairyproof, why haven't this clear the rumour that USDT might fail someday? Because it's Centralised? If that's it then why DAI ( decentralized stable coin) haven't grow over USDT all this while?

I do feel like DAI is the better alternative.

However, liquidity is sort of a self-fulfilling prophecy. USDT has always had the upper hand when it came to trading volume, so this is what people default to when they trade on major exchanges or even when exchanges make their listing decisions.

In the future definitely expect UST, DAI to make some noise. Decentralized stablecoins are the future, and USDC and USDT are on the way out.

[CryptoATM]

Auditing in crypto space isn't some kind of law that new projects have to go through to clear all doubts about them, once newbies sees a project got audited they trust them instantly, see audit is just smart contract checkups nothing more or less still anything can happen.

[jostorres]

... If that's it then why DAI ( decentralized stable coin) haven't grow over USDT all this while?

The benefit of DAI is that it is all code, there is no business/party that controls it, and that's nice. The downside is that since there are no parties actively controlling it, it is at more risk of losing its peg to the dollar. If we look at the charts we can see that DAI tends to fluctuate a bit more than USDT/C because it is not under the control of a central authority.

Well, that’s what you’re getting when you decide to select a stablecoin that is decentralized.
A stablecoin that is centralized will always have a better control and more pegged to the USD than a decentralized one that has no central authority that controls it. That’s just it, they can both never be the same.

But, with that said, there wouldn’t be that much of a price difference between the two of them, even though that DAI is a bit volatile, the price will still be very close to the US Dollars.

[deean_3one]

Tether (USDT) is a crypto asset whose value is guaranteed at 1:1 with US dollars. USDT belongs to a stablecoin, or crypto asset designed to have the same value as fiat currencies or other assets with a more stable value.