Tether (USDT) - Backed by Air and Words

[Silberman]

The true state of obliviousness in crypto is still baffling. Despite billions of dollars and repeated offenses by countless wolves over the past 10 years in all of crypto, no one bats an eyelash at the lack of any tangible* evidence from the largest stablecoin.  

Some people thought that USDT gain its merits by simply being the largest stable coin, therefore many of them didn't look deeper into what it is all about, they presume it is fine since many people are using it. By relying on the masses' usage of USDT and/or a piece of attestation for the transparency, they assume it is all good. What can we expect from a platform that relies on trust while the masses blindly give the trust?

People have the mistaken thought that something is too big too fail and one of the best examples of this was the Titanic, at the time it was the best and biggest ship ever built to the point people thought it was unsinkable, and we know that happened, it crashed and disappeared on its maiden voyage, and we are seeing something similar happening with USDT, USDT is so big and powerful that people believe it cannot ever disappear, but it can, and when it does it would not surprise me if it happens as fast as what we saw with UST.

[Captain Corporate]

This isn't like Titanic because that was a tangible real thing that you could see, and USDT is just air, it is absolutely nothing but a "word" from the creators that it will always be backed. At the end of the day, if USDT ever fails (which it will eventually) it will be a horrible dark period in the crypto world and that is the only thing that I feel upset about. If we are going to live through that horrible period, then why would we need to wait for it, why not take your money out of USDT right now small by small and request the money they promise that they are keeping. Its like banks, if everyone withdrew their funds from banks, banks couldn't pay everyone, and yet they still run like they are business and that bothers me, USDT is doing the exact same thing.

[AmoreJaz]

This isn't like Titanic because that was a tangible real thing that you could see, and USDT is just air, it is absolutely nothing but a "word" from the creators that it will always be backed. At the end of the day, if USDT ever fails (which it will eventually) it will be a horrible dark period in the crypto world and that is the only thing that I feel upset about. If we are going to live through that horrible period, then why would we need to wait for it, why not take your money out of USDT right now small by small and request the money they promise that they are keeping. Its like banks, if everyone withdrew their funds from banks, banks couldn't pay everyone, and yet they still run like they are business and that bothers me, USDT is doing the exact same thing.

the problem here is that there are many users that are trusting this stablecoin. i, for one, has also qualms on their assets. when they admitted few years ago that at some point they were not fully backed, it stuck in my mind and up until now, i have the feeling that they are not telling the absolute truth to the public. yes, they have auditors and all. but how can you tell that they are also telling the truth? and how can we access those audits? yes, there is no tangible proof about their backing, maybe not available to public consumption.
so if you are a holder of this stablecoin, better think now. cash out while you can. before the doomsday comes. your choice!

[Silberman]

This isn't like Titanic because that was a tangible real thing that you could see, and USDT is just air, it is absolutely nothing but a "word" from the creators that it will always be backed. At the end of the day, if USDT ever fails (which it will eventually) it will be a horrible dark period in the crypto world and that is the only thing that I feel upset about. If we are going to live through that horrible period, then why would we need to wait for it, why not take your money out of USDT right now small by small and request the money they promise that they are keeping. Its like banks, if everyone withdrew their funds from banks, banks couldn't pay everyone, and yet they still run like they are business and that bothers me, USDT is doing the exact same thing.

It was just an analogy of how something which we believe to be impossible to fall can indeed do so under the right circumstances, however I agree, the fall of USDT will happen at some point in the future, after all even if it could somehow avoid the collapse due to the doubts people have about maintaining the one to one ratio to the dollar, we also know governments are interested in creating their own CBDCc, so how long it would take until they set their sights on centralized stable coins and try to destroy them?

[fzkto]

All this has been known about Tether for a long time, but guys, bitcoin is worth 30k now just because of this stabelcoin. All the recent bull markets started only after Tether turned on the printing press. Bitcoin would not have risen to 69k and would not be worth 30k now if not for Tether. If something like UST happens to Tether, we can forget about cryptocurrencies for a long time. And by the way the question arises - if Tether is a scam and everybody knows about it, why they are not closed by SEC or other authorities yet?

[Silberman]

All this has been known about Tether for a long time, but guys, bitcoin is worth 30k now just because of this stabelcoin. All the recent bull markets started only after Tether turned on the printing press. Bitcoin would not have risen to 69k and would not be worth 30k now if not for Tether. If something like UST happens to Tether, we can forget about cryptocurrencies for a long time. And by the way the question arises - if Tether is a scam and everybody knows about it, why they are not closed by SEC or other authorities yet?

Those are without a doubt nice observations, it is true the price of bitcoin started to skyrocketed when tether became bigger as well, however is the growth of tether the cause of bitcoin growth or is the bitcoin growth the cause of the increase in the tether in circulation? This is something difficult to answer, and about your question regarding why tether still exists, this is something hat has confused people for a long time, however it would not be rare there are people behind tether which are protecting it from the SEC, but taking into account governments want to create their own stable coins I do not know for how long this can continue.

[fzkto]

All this has been known about Tether for a long time, but guys, bitcoin is worth 30k now just because of this stabelcoin. All the recent bull markets started only after Tether turned on the printing press. Bitcoin would not have risen to 69k and would not be worth 30k now if not for Tether. If something like UST happens to Tether, we can forget about cryptocurrencies for a long time. And by the way the question arises - if Tether is a scam and everybody knows about it, why they are not closed by SEC or other authorities yet?

Those are without a doubt nice observations, it is true the price of bitcoin started to skyrocketed when tether became bigger as well, however is the growth of tether the cause of bitcoin growth or is the bitcoin growth the cause of the increase in the tether in circulation? This is something difficult to answer, and about your question regarding why tether still exists, this is something hat has confused people for a long time, however it would not be rare there are people behind tether which are protecting it from the SEC, but taking into account governments want to create their own stable coins I do not know for how long this can continue.

Of course the rise of bitcoin is directly correlated with the increase of Tether, which is printed out of thin air. The last two bull runs, i.e. for five years now, all the coins have grown only because of Tether. Of course they have big supporters who have influence over the whole crypto market. I think Tether will continue to do well, because talk of its collapse always starts during a bear market, which means that someone also profits from it.