A good news or a bad news

[rhomelmabini]

I read online that A US court have ordered USDT owner Tether to disclose the reserves backing its stable coin, this is the largest Stable coin in crypto space presently and this doesn't sound like a good news to me, is this the great crypto collapse in play or I am just think way too much? This freaks me out.

You should provide links so that people can follow on what you're trying to disseminate. I think this wasn't the first of it's kind news for tether to ever encounter for such issues, so it's not that surprising if they get such notice. Disclosing doesn't necessarily means it's bad but it's how you put the situation though, that's for you to decide.

[abel1337]

It can be a goods news or bad news to you depending on your current situation, There might be a small price drop but I believe it can be sustained knowing that USDT is a largely traded pair. If they got audited and they are proven to be giving false declaration, The situation will be changed.

There are a lot of rumors and accusations on tether before that the coins they are minting are not backed 1:1 and I believed that there are some who stopped using tether because of that issues. It's a serious issue that can make USDT depegged.

[Xal0lex]

I read online that A US court have ordered USDT owner Tether to disclose the reserves backing its stable coin, this is the largest Stable coin in crypto space presently and this doesn't sound like a good news to me, is this the great crypto collapse in play or I am just think way too much? This freaks me out.

It all depends on the real situation. If USDT does not have any problems and they are ready to confirm their reserves, it will increase the attractiveness of USDT in the eyes of investors and regulators. If the project can not confirm the reserves and it turns out that a large number of coins are not secured by anything or secured by some debt obligations, there will be an outflow of funds from USDT. Such a development would have a positive impact on USDT's direct competitor, USDC, because it could soon replace USDT in the table of stablcoins.

[serjent05]

I heard this is just a routine, no cause for an alarm, also I think I like the idea, USDT have been audited by fairyproof and certik so clearing this rumour of USDT can't be trusted can make USDT be more trusted by crypto users, to me its more of good news than bad.

Certik did a USDT audit in 2019 with a Code Audit History
Fundamental protection and assessment. so no more doubts about USDT. Total Supplay 70,155,449,908.75 USDT with Circulating Supply
67,954,703,168.02 USDT. The USDT pair has even become the main stablecoin pair used by traders because it is considered more secure. no crypto collapse, this would be a good start as more people get to know crypto and come in to invest.

Source: https://www.certik.com/projects/tether

Certik audit was not a reliable. tether said that if its token even backed by various things like bonds and many more. That proves that if it's not all of reserved funds available in the USD form. The government needs to know how much assets like real USD fiat money, stock or bonds owned by tether to backed its stable token. That means if the USD court wanna know the real audit by its commissions. Tether was in a bad move in this case caused by it's not being so transparent from the start

I greatly agree, there are lots of projects that are reviewed by Certik but end up being a scam through rug pull, failed due to exploiting and hacks.  In short, there are lots of projects that pass Certik's code review but end up getting hacked or exploited.

Having the Government involved in assuring the masses that USDT has actually the amount stated as reserved for their Tether is really a good move and reassuring at least.  Even though we don't know the real reason behind the intention of the US court, at least we will benefit from it and that is a good news.

[Baofeng]

For those looking for sources:

- Judge Orders Tether to Produce Records Showing Backing of USDT
- Tether says new court order to produce USDT reserve backing is a 'routine discovery matter'

Or directly from the court order: https://storage.courtlistener.com/recap/gov.uscourts.nysd.524076/gov.uscourts.nysd.524076.247.0.pdf

~maybe they trust Tether or they just don't believed that the government has a case against them.

They are ironically trusted or simply the majority of the people are ignorant. I believe the latter, their users didn't notice the government has a case is out of the option, IMO, it would be too much dumbfounded if there are USDT users who would believe so. The current order was from a 2019 lawsuit, and actually, if we look based on my first referenced Decrypt article, there is a case whereases Tether found guilty to misled the reserve they had to back the token. There ware multiple related cases, so it would be ironic if people still trusting them.

It's really hard to know, for me I'm aware of the court cases way before (I even tagged it as 2018, it supposed to be 2019). But in any case, I just used but i don't put like in the thousands of dollars, just a couple of hundred specially if I just wanted to hedge against bitcoin's volatility.

But in any case, users should be aware of the court cases and if they are willing to take the risk then it's up to you. The court battle might be long though, so do your own diligence.

[Jackl87]

I read online that A US court have ordered USDT owner Tether to disclose the reserves backing its stable coin, this is the largest Stable coin in crypto space presently and this doesn't sound like a good news to me, is this the great crypto collapse in play or I am just think way too much? This freaks me out.

Well i am also not sure what i should think about this. First of all i think it totally makes sense that the company behind USDT shows what those reserves are that they are talking about that are backing their USDT. As far as i know they changed the wording regarding the backing of USDT a few years ago from "We have enough money to back every USDT minted" to "We have enough reserves to back every USDT minted", but no one really knows in what form those reserves exist or if they exist at all.
If they don't have enough reserves and this becomes public then we will have a huge dump of the whole market. Way harder then the one we had when Terra blew up. I hope everything will be fine.

[vv181]

~maybe they trust Tether or they just don't believed that the government has a case against them.

~
They are ironically trusted or simply the majority of the people are ignorant. I believe the latter, their users didn't notice the government has a case is out of the option, IMO, it would be too much dumbfounded if there are USDT users who would believe so. The current order was from a 2019 lawsuit, and actually, if we look based on my first referenced Decrypt article, there is a case whereases Tether found guilty to misled the reserve they had to back the token. There ware multiple related cases, so it would be ironic if people still trusting them.

It's really hard to know, for me I'm aware of the court cases way before (I even tagged it as 2018, it supposed to be 2019). But in any case, I just used but i don't put like in the thousands of dollars, just a couple of hundred specially if I just wanted to hedge against bitcoin's volatility.

But in any case, users should be aware of the court cases and if they are willing to take the risk then it's up to you. The court battle might be long though, so do your own diligence.

Indeed, it is hard to find relevance to the fact it has an ongoing case and proven have lying to its customer, yet USDT is still being used. It seemed like it may be kind of like a self-fulfilling prophecy whereas some people just use it for a short term or just putting a small amount of funds. IIRC, USDT's high availability across many exchanges and networks also plays its part to make the token widely used. I don't know exactly the current condition, but it seems many stable tokens are catching up to be broadly available on many ecosystems.

With that in mind, cryptocurrency userbase would have many options to choose a widely available range of stable tokens.

[Yamifoud]

I have no problem using tether usdt in fact I like the stable coin more than a few others except BUSD, Tether is big enough right now and they have been investigated in the past, bringing this up now is just a new to create fear in this crypto space so nothing new here.

Their reputation is very important and I know for sure that every investor needs some clarification and transparency and much more for the government. The issue is really a big deal and they have to tell the truth otherwise, they've got what it deserves for this project. I'm not going to say it creates fear in the market as it never affects the entire market for sure.

Might say it was bad news for USDT investors and developers but for some reason, this will help to keep the market looking good and all of the stablecoins.

[Ayers]

I have no problem using tether usdt in fact I like the stable coin more than a few others except BUSD, Tether is big enough right now and they have been investigated in the past, bringing this up now is just a new to create fear in this crypto space so nothing new here.

Their reputation is very important and I know for sure that every investor needs some clarification and transparency and much more for the government. The issue is really a big deal and they have to tell the truth otherwise, they've got what it deserves for this project. I'm not going to say it creates fear in the market as it never affects the entire market for sure.

Might say it was bad news for USDT investors and developers but for some reason, this will help to keep the market looking good and all of the stablecoins.

that is bad news for tether developers and good news for investors and the market. having to say that although usdt is the most popular and widely used in the market, people still want to know its true transparency and so far there is no clear answer.  news about usdt is not so new, almost every year there are rumors about the transparency of usdt
i hope this time will be different, after the collapse of ust, we really need stronger measures to help the market become cleaner.  today we have a lot of options with stable coins so the fact that usdt is being investigated is really good news to me

[KaliLinux]

I read online that A US court have ordered USDT owner Tether to disclose the reserves backing its stable coin, this is the largest Stable coin in crypto space presently and this doesn't sound like a good news to me, is this the great crypto collapse in play or I am just think way too much? This freaks me out.

I however agree with the point raised by the court. Most people have always believed that crypto trading is not safe and things like this if not proven right might further affirm that notion by skeptical people about the crypto market and even though this has kinda been an ongoing thing with USDT tether, I hope this part can be cleared out for once and lets move on.

[Bitstar_coin]

The rumors about usdt reserve backing have been circulating for so long keeping people in doubt, it is better they clear the air so that investors will be confident enough and have the trust to store their assets with usdt.
It is very unhealthy for any investor to use usdt store the money when it is not transparent, see what happened with ust, even though the scenario is different but it still boils down to trust, many investors trust terra ust enough to store thousands and millions of dollars with it but at the end, things went really bad and people lose money.
Nobody wants a repetition of such a situation with usdt, it is better they own up and do as instructed by the court.

[samuraijin]

I read online that A US court have ordered USDT owner Tether to disclose the reserves backing its stable coin, this is the largest Stable coin in crypto space presently and this doesn't sound like a good news to me, is this the great crypto collapse in play or I am just think way too much? This freaks me out.

Is it just an allegation or accusation that happened to the USDT owner, if it's true then we'll just have to wait for the next news to be true whether they have reserves of some USDT coins, at least to make it clear that this news is true, it won't happen if the bitcoin doesn't have it. value, and of course all cryptocurrency chains will die instantly..

[Mpamaegbu]

For those looking for sources:

- Judge Orders Tether to Produce Records Showing Backing of USDT
- Tether says new court order to produce USDT reserve backing is a 'routine discovery matter'

Or directly from the court order: https://storage.courtlistener.com/recap/gov.uscourts.nysd.524076/gov.uscourts.nysd.524076.247.0.pdf

You did well by aiding OP on that information of source material. Thanks, on my part too, because it helped me have a deeper look into the whole issue.

OP, I don't think there's anything you should be worried about. Unless the trio founders of Tether don't have reasonable evidence of coin backing, I don't see much fundamentals happening to disrupt price. I want to see it as a routine check from regulators.

[BobK71]

I read online that A US court have ordered USDT owner Tether to disclose the reserves backing its stable coin, this is the largest Stable coin in crypto space presently and this doesn't sound like a good news to me, is this the great crypto collapse in play or I am just think way too much? This freaks me out.

Any kind of negative news in a bearish market makes crypto more hindered. But all these positive or negative news is not new. It can be said that crypto runs through it. But what the OP mentions has no truth to it. Constantly releasing negative news on cryptocurrency is also a work of whales. Many in such news will sell their assets at low prices and whales will buy them at low prices as well. But such trap is nothing new.

[Xal0lex]

The rumors about usdt reserve backing have been circulating for so long keeping people in doubt, it is better they clear the air so that investors will be confident enough and have the trust to store their assets with usdt.
It is very unhealthy for any investor to use usdt store the money when it is not transparent, see what happened with ust, even though the scenario is different but it still boils down to trust, many investors trust terra ust enough to store thousands and millions of dollars with it but at the end, things went really bad and people lose money.
Nobody wants a repetition of such a situation with usdt, it is better they own up and do as instructed by the court.

The comparison with UST is highly incorrect because USDT is a centralized stablecoin backed by dollars and securities. UST is an algorithmic stablcoin and has been backed by the dollar through a link to risky and volatile assets such as LUNA and BTC. Keeping money in algorithmic stablecoins is definitely not a good idea, as they are at maximum risk of de-peg.

[GeorgeJohn]

I read online that A US court have ordered USDT owner Tether to disclose the reserves backing its stable coin, this is the largest Stable coin in crypto space presently and this doesn't sound like a good news to me, is this the great crypto collapse in play or I am just think way too much? This freaks me out.

This news have not circulates. And i believe that this information should be place on examination. Because if this information is vital many people would have dispense the information by now. And op, for you to make information authentic you have to include the the source of the information to make it more reliable to the listener and also the readers as well.

[Tony116]

The rumors about usdt reserve backing have been circulating for so long keeping people in doubt, it is better they clear the air so that investors will be confident enough and have the trust to store their assets with usdt.
It is very unhealthy for any investor to use usdt store the money when it is not transparent, see what happened with ust, even though the scenario is different but it still boils down to trust, many investors trust terra ust enough to store thousands and millions of dollars with it but at the end, things went really bad and people lose money.
Nobody wants a repetition of such a situation with usdt, it is better they own up and do as instructed by the court.

So this is good news not bad news as people fear, if we are not doing anything wrong why should we be afraid, it seems like people are not sure about the USDT they are holding. The news about USDT has been around for a long time but it was never clear, I hope that after the UST collapse, governments can tighten the operation of stablecoins, this will be very beneficial to us, investors. We need a healthy market to invest in, not a market full of scammers.

[dark1234]

I read online that A US court have ordered USDT owner Tether to disclose the reserves backing its stable coin, this is the largest Stable coin in crypto space presently and this doesn't sound like a good news to me, is this the great crypto collapse in play or I am just think way too much? This freaks me out.

This news have not circulates. And i believe that this information should be place on examination. Because if this information is vital many people would have dispense the information by now. And op, for you to make information authentic you have to include the the source of the information to make it more reliable to the listener and also the readers as well.

i just found this news
The controversy over Tether, the company issuing the USDT stablecoin, is still ongoing, most recently the United States through a local court finally rejected the company's application to hide their money reserve records from the public.

Some time ago, Tether asked the New York City Court to prevent the public from requesting to examine documents related to the money reserves that backed the value of their stablecoins issued over the past few years. It started after the leading crypto media Coindesk asked the state to disclose the company's financial records
https://blockchainmedia.id/

[asriloni]

I read online that A US court have ordered USDT owner Tether to disclose the reserves backing its stable coin, this is the largest Stable coin in crypto space presently and this doesn't sound like a good news to me, is this the great crypto collapse in play or I am just think way too much? This freaks me out.

it all depends if they are truly up to their words and are backing up their stable coin or they were all lies and we're going to witness a big downfall for crypto, it might be the latter because I don't really believe that USDT is %100 backed by us dollars, I somehow can't trust them, that's why I don't hold USDT anymore.

Pretty much like that. When tether gets audit and that's the same like gambling for the reputation of tether. if tether has been always using the fake data and there will be so many parties will be blaming this token. Im thinking about the possible worst scenario for this case.
We know that if tether was not fully backed by fiat money but it was combined with various assets in the market. So, this may also become a boomerang for tether

[Silberman]

In my opinion, it's positive news for the crypto market if they show proof of reserve backing its stablecoin, thus Tether will gain the trust factor amongst all the stablecoins, and traders or investors will not be afraid to hold it. For the time being, I would say just wait for Tether dev to provide the proofs.

Never trust fully in any stable coin, even if tether can prove that they are in fact backing their coins as they claim we do not know if this will always be the case, this is in fact one of the main reasons why this market exists at all as governments have abused the power of creating their own currency, decades ago they claimed their currencies were backed by a specific amount of gold only to break that promise over and over again, so any centralized entity can always go back on their word if it is on their best interest to do it.