What happens if USDT falls down?

[cryptoaddictchie]

Then something will rise up and be the next or new usdt. Its gonna be like ust case where its die out but its gonna be hard to let usdt fall into that gap range cause they have a lot of funds and has diffrent case of luna stables. But if this were to happen at some point this could bring very bad effect on market cause usdt is one of the major or the most commonly used stablecoin so people might panic about the market.

[www.Gambler.Casino]

It makes no sense to scam USDT otherwise cryptocurrency trading will be lost. I assume that the government is behind the USDT

[yazher]

You will get from us multiple answers because most users here don't have USDT as their investment rather they are just using this opportunity when they don't have any alternatives for fiat and they don't have any means to convert their coins at its current high price when the crypto market is congested. But when you choose it as an investment, then you need to consider the bad sides when the owner faces some trials because it could also demise the price of USDT as well. That's why most people do not recommend this kind of investment nowadays and they let others choose the safe one which is bitcoins.

[Xal0lex]

If you recall what happened to USTC, I mean the Tera classic stable coin? It wasn't backed by anything other some portion of some BTC and their tokens. It was an experiment meant to succeed beyond the space of USDT but failed when Bitcoin price start dumping and when some people saw some flaws in the Defi, they made use of it to manipulate the price and short the he'll living out of the stable coin and today, it's worth nothing, all investment down the drainage.

UST had an impressive LFG fund which was the collateral for LUNA, this fund had tens of billions of dollars in bitcoin. The main problem was that UST was giving an unrealistic interest rate, almost 20%. At that rate, you need a constant inflow of new money. It was more like some kind of pyramid scheme, where the pyramid lives if there is a constant inflow of new money. Because of the problems in tokenomics, LUNA faced hyperinflation and even a huge fund could not save the situation. Apparently they realized that the situation cannot be saved and it is easier to sell off all bitcoins than to try to keep UST from de-peg.

[Apocollapse]

I put all of my money in Bitcoin, it's mean either USDT is collapse or not, there's nothing will affect me.

You're correct there's will be a time USDT will collapse, it will happen since it's possible. USDT is centralized and it's not fully backed with real USD, it's different with Bitcoin where it's decentralized and no one is controlling Bitcoin.

[Roma66]

Sometimes usdt fails down,Better option my opinion bitcoin hold great opportunity. Don't loss your fund.Bitcoin hold best choose for most people openion.Some time fails usdt in crypto market.This is big loss for crypto market.So I hope bitcoin hold good investment.This question another answer because some people used Usdt most time & some people used bitcoin.

[BabyBandit]

We know that USDT is coming back from the most horrific situations from the past. But I want you to answer this, what do you do if someday without any signs USDT falls back to 0.1-0.2$? What do you do? Can you survive in this situation? What do you do if you put all your assets in USDT?

Just curious to know your answer. Don't say reasons that it won't happens, because I want to know if something this kind of thing happens in future what will you do?

If you ask my replay to this, I can say I will ok with it. Because I put my 20% into USDT right now. Why? because you know guys there is an Old saying Never put your all eggs in the same basket.  

I only hold a few USDT because I don't see a point for me to use it, i would rather get rid of them, but for others, maybe it's the best coin in the world! We all thinks different.
But could it really go down that low to $0.1-$0.2? and when you say that can it also go up to $10. I am not a pro at crypto, but isn't USDT a "stable coin" so isn't the whole idea to be stable around $1 all the time?

"Stablecoin is a fixed-price cryptocurrency whose market value is attached to another stable asset. Differing from normal cryptocurrencies, stablecoin can be pegged to assets such as certain fiat currencies that can be traded on exchanges, including the U.S. dollar or the Euro." - Stolen from Google.



- BabyBandit -

[Coyster]

It makes no sense to scam USDT otherwise cryptocurrency trading will be lost. I assume that the government is behind the USDT

USDT is issued by a centralized company, Tether, and not the government. The implications on crypto trading will be massive if USDT gets depegged, but the implications doesn't mean that it is not possble, and you are wrong that it will be the end of crypto trading, people who use stable coins will find other available options. The company that issues a stable coin can become insolvent or fail, and that will mean the end of that stable coin, thus when dealing with centralized coins mind you that if anything bad happens to the issuing company, the coin will become worthless.

[RewFrew]

We know that USDT is coming back from the most horrific situations from the past. But I want you to answer this, what do you do if someday without any signs USDT falls back to 0.1-0.2$? What do you do? Can you survive in this situation? What do you do if you put all your assets in USDT?

Just curious to know your answer. Don't say reasons that it won't happens, because I want to know if something this kind of thing happens in future what will you do?

If you ask my replay to this, I can say I will ok with it. Because I put my 20% into USDT right now. Why? because you know guys there is an Old saying Never put your all eggs in the same basket. 

We know USDT is Stable coin. But it also a crypto-currency. So it can be fall down i think. But it will never impact with me. Because i only use USDT for converte to another cryptocurrency. I never hold it. As i never hold it so i think it will never impact to my portfolio if it’s price fall down. And i also think when USDT price will fall then other stable coin will fill its place.There are many stable coin available in cryptocurrency market like USD, BUSD, USDC etc. We saw some days ago it happen with UST but within short time another stable coin fill It's place.

And you think exactly correct i also think don’t put all fund in one Basket. All we know that cryptocurrency is highly profitable and highly risky. So all of us have to think aboit It's risk. And i will tell when you will saw any problem in USDT then please avoid it then. Because it is a stable coin.  No any profit you will get from holding USDT.

[aseprebel]

We know that USDT is coming back from the most horrific situations from the past. But I want you to answer this, what do you do if someday without any signs USDT falls back to 0.1-0.2$? What do you do? Can you survive in this situation? What do you do if you put all your assets in USDT?

Just curious to know your answer. Don't say reasons that it won't happens, because I want to know if something this kind of thing happens in future what will you do?

If you ask my replay to this, I can say I will ok with it. Because I put my 20% into USDT right now. Why? because you know guys there is an Old saying Never put your all eggs in the same basket. 

We know USDT is Stable coin. But it also a crypto-currency. So it can be fall down i think. But it will never impact with me. Because i only use USDT for converte to another cryptocurrency. I never hold it. As i never hold it so i think it will never impact to my portfolio if it’s price fall down. And i also think when USDT price will fall then other stable coin will fill its place.There are many stable coin available in cryptocurrency market like USD, BUSD, USDC etc. We saw some days ago it happen with UST but within short time another stable coin fill It's place.

And you think exactly correct i also think don’t put all fund in one Basket. All we know that cryptocurrency is highly profitable and highly risky. So all of us have to think aboit It's risk. And i will tell when you will saw any problem in USDT then please avoid it then. Because it is a stable coin.  No any profit you will get from holding USDT.

The cryptocurrency market is still relatively young and can be influenced by events that impact overall market sentiment. If a major stablecoin like Tether were to falter, it could lead to a decrease in overall confidence in the cryptocurrency market, potentially causing broader market declines.

[miruha333]

The cryptocurrency market is still relatively young and can be influenced by events that impact overall market sentiment. If a major stablecoin like Tether were to falter, it could lead to a decrease in overall confidence in the cryptocurrency market, potentially causing broader market declines.

Depends on how shaky it gets. Every now and then its price gets decoupled from the dollar, but that's only a small negative. I'm honestly afraid to even imagine what would happen to the market if usdt goes down halfway.

[Venik]

The cryptocurrency market is still relatively young and can be influenced by events that impact overall market sentiment. If a major stablecoin like Tether were to falter, it could lead to a decrease in overall confidence in the cryptocurrency market, potentially causing broader market declines.

Depends on how shaky it gets. Every now and then its price gets decoupled from the dollar, but that's only a small negative. I'm honestly afraid to even imagine what would happen to the market if usdt goes down halfway.

I don't want that to happen, but I think it would be at least interesting to see how the world will react if USDT goes down. I mean, Bitcoin will come back sooner or later anyway, but a lot of influencers and scammers will fall.

[kentrolla]

It's a major misconception that USDT is as stable as dollars and it cannot go down, we have seen in the past when USDT has been dwindling and I am 100% sure still we have users holding huge amount in USDT without there no legally binding terms which says USDT will be equivalent to USD and there is no guarantor for this. I have seen USDT's value dropping by over 50% when there were speculations that crypto will be banned in India and this is a reminder for everyone that it can go down anytime it's no different that other crypto coins but can be used as a medium of transfer as it's not volatile but we shouldn't be holding huge amount here.

[martinex]

The situation will be much worse than UST (Terra USD). If you have savings in USDT, you should convert them to dollars (paper currency) or BTC for security. You should only have limited stock in USDT for trading purpose. Because if the de-pegging of USDT happened, it will create havoc in the market as it has a market cap of $84 Billion. 

Yes. Tether has its own strengths and is highly favored by crypto lovers as the world's third largest cryptocurrency by market value. Because USDT is resistant to current global conditions, but if we review it after the fall in the value of TerraUSD (UST) from its benchmark value of $ 1 and this could be one of the possibilities and will be the second bitter pill for the holder as you said above. Well what am I also going to do if it will happen again, I'm trying to get out of it and into BTC as fast as I can.

[miruha333]

It's a major misconception that USDT is as stable as dollars and it cannot go down, we have seen in the past when USDT has been dwindling and I am 100% sure still we have users holding huge amount in USDT without there no legally binding terms which says USDT will be equivalent to USD and there is no guarantor for this. I have seen USDT's value dropping by over 50% when there were speculations that crypto will be banned in India and this is a reminder for everyone that it can go down anytime it's no different that other crypto coins but can be used as a medium of transfer as it's not volatile but we shouldn't be holding huge amount here.

I completely agree. However, the USDT price drops are caused primarily by market manipulation by large-scale investors. Their sole objective is to make profits. I believe it is not necessary to separate USDT from the dollar at this moment. It would be more beneficial to carry out the separation before the next bear market phase to swiftly reduce market values.

[AliDeep]

It's a major misconception that USDT is as stable as dollars and it cannot go down, we have seen in the past when USDT has been dwindling and I am 100% sure still we have users holding huge amount in USDT without there no legally binding terms which says USDT will be equivalent to USD and there is no guarantor for this. I have seen USDT's value dropping by over 50% when there were speculations that crypto will be banned in India and this is a reminder for everyone that it can go down anytime it's no different that other crypto coins but can be used as a medium of transfer as it's not volatile but we shouldn't be holding huge amount here.

I completely agree. However, the USDT price drops are caused primarily by market manipulation by large-scale investors. Their sole objective is to make profits. I believe it is not necessary to separate USDT from the dollar at this moment. It would be more beneficial to carry out the separation before the next bear market phase to swiftly reduce market values.

Tether is the most popular stable coin. Many people use it and trust it. The capitalization of the Tether becomes to grow.

[Magic-Money]

Their will be a panic in the cryptocurrency market, if USDT falls down below imagination, which that can't happen, because USDT is build for strong stable coin that many investor's and traders used when market not favourable. And also USDT stable coin is 100% trust, which hardly breakdown from the support level at any given time.

[asriloni]

It makes no sense to scam USDT otherwise cryptocurrency trading will be lost. I assume that the government is behind the USDT

Is not it better for you to take a look at which party that is behind USDT rather than blindly accusing the government was behind USDT? It's a bit hard to understand what you are going to say. The fact that if USDT can depeg anytime.
The price keeps stable caused it has reserved funds that used to keep it. You shall aware about USDT is controlled by the company. The government is not having ability to access it without owning the key to the contract.

The mechanism in the blockchain has been preventing the government from seizing it at least not for now. Did you remember the case of USTC? It's collapse due to the mistake that being made by the company itself.
The government ever touch it. That proves that when USDT may collapse and you shall accuse the company who is behind it as the main actor that was making the price of USDT plunged.

I remind you that even USDT has been plunged so many times even though it was not so significant.

[miruha333]

Tether is the most popular stable coin. Many people use it and trust it. The capitalization of the Tether becomes to grow.

Technically, there are no questions at this stage. However, are you certain that collaterising dollars and securities does not conflict with the issuer's statements and documentation? I am uncertain, so I shall remain vigilant when it comes to such assets.

[wxa7115]

It's a major misconception that USDT is as stable as dollars and it cannot go down, we have seen in the past when USDT has been dwindling and I am 100% sure still we have users holding huge amount in USDT without there no legally binding terms which says USDT will be equivalent to USD and there is no guarantor for this. I have seen USDT's value dropping by over 50% when there were speculations that crypto will be banned in India and this is a reminder for everyone that it can go down anytime it's no different that other crypto coins but can be used as a medium of transfer as it's not volatile but we shouldn't be holding huge amount here.

Anyone that thinks that a stable coin is as strong as the fiat currency they are supposedly emulating is out of their minds, this is the same that happened with currencies which were backed as gold, they claimed to be as good as gold and we know what happened, all of them became fiat currencies as the governments could not keep stop printing more and more money.

And stable coins are worse in the sense that at least fiat currencies can still survive someway or another as a government is backing them, but if the company behind USDT collapses then the value of the stable coin will go to zero.