It is still mindboggling to see that Tether occupies #3 spot on market-cap in today's day & age of crypto. Even more interesting, is how recent high-fliers that had such great utility value and a large following by the elite such as Compound and 1Inch are literally just a step or two away from falling off the top 100 list. Makes you wonder, WTF happened? As a positive note, there is so much development in DeFi, anything revolutionary one year is already obsolete the next. I suppose that CAN be a good thing for progressiveness. Doge-the-joke coin may one day beat Tether. Crypto really is stranger than fiction at times...
Good point. Maybe the main metric should be how fast is the conversion from the coin to dollar-in-hand. It just seems to me that the Feds have a lot of interest in the money-changing metric. I'ld like to know how anybody else, other than an actual bank, with some legal amount of capital on hand, can be ready to exchange that much money in that short of a time. Anyway, whenever conversion becomes difficult, the time it takes to convert increases. The more time increases, the riskier it is to be holding that coin. Anyway, it wasn't too many years ago we heard so many stories of Feds entrapping people just trying to buy and sell bitcoin on LocalBitcoins.com, saying you needed a license to be exchanging over x amount or frequency, trying to put people in jail. The coin issuer needs to make some money for this ease-of-exchange service. Does anybody have a clue how Tether makes it's money? Seems to me that you can say something is "backed" all you want, but who are you, and where are you located, come time to redeem these tokens?
The way it is described here, sounds like the entire crypto-sphere of exchanges have been astro-turfed with a common "stable" coin to facilitate pan-exchange arbitrage across the global frontier. I would admit arbitrage is important...important enough we wouldn't want it to suddenly stop if these coins turn out to be fraudulent. Or, do we really need this kind of coin for global arbitrage?
At the risk of misstating johnarb’s posts, Tether isn’t backing anything. Only select registered buyers can redeem USDT for fiat currency directly from Tether. Everyone else is left with the secondary exchanges like Coinbase. IOW, USDT is not a bearer instrument.
I don't know what to tell you man. It seems you believe the Tether fud completely USDC, USDT, PAX, BUSD are all stablecoins backed by $1 for each coin USDT is actually backed by more than 100% of USD for each coin These stablecoins are all crypto assets running on blockchains and are global in scope You can buy a house using USDT or you can buy $1M worth of BTC or ETH using USDT The Tether fud has been going on for many years. If you assume the fud is 100%, then good for you. I don't believe the Tether fud at all so we're on opposite extreme Let's wait to see if Tether USDT ever collapses https://coinmarketcap.com/currencies/tether/markets/ https://coinmarketcap.com/currencies/usd-coin/markets/ https://coinmarketcap.com/currencies/paxos-standard/markets/ https://coinmarketcap.com/currencies/binance-usd/markets/
I wouldn't say i listen to the fud anymore than average person. What i perceive are grey, curtained off areas of the unknown that challenge comprehension. It's like the game of Monopoly where nobody questions just exactly how the bank came up with all that money to begin with, but without, it would be impossible to play the game. So we never ask about the source because we are so interested in getting on playing the game. Similar with the Fed. Never been audited. Because we want to get along and just play the game. Don't ask where all this money comes from, whether the bank is really, properly capitalized, by whom, and where did they get their capital? Yes, there was a time when nations openly borrowed from private individuals, for example, the Bank of England used to borrow from the Rothchilds. Ok now since Jekyll island, a corporate veil obfuscates exactly who, or what group, is capitalizing the "Federal Reserve". Fine, let nations borrow from groups of private individuals. But if those individuals holdings cannot be audited, who is to say they are even lending money they even own? At that point it's just magic money. Now enter the crypto-sphere, and this same don't-ask-don't-tell permeates the space. Anyway, it appears to me the most that are benefited are exchanges, if they have all other exchanges astro-turfed with this common liquid. It facilitates arbitrage, which facilitate a lot of trading (The liquid could be good for traders too, which is probably why we don't ask where it comes from). That's good for the exchanges. Without their support, probably these coins would have trouble existing up against open source software like Bitcoin.
John this is total BS. it was proven that they lie multiple times, first when they said in the beginning that every USDT they release has 1 USD in the bank. Then they claimed that they are backed by commercial paper, and if you recall Bloomberg called every trading desk to see if anyone ever saw them trading even a single one, and no desk ever did. And at 60 billion back then they would be top 10 commercial paper holders in the world. You do the math form here.....
We have no idea of 10 billion burn was actual redemptions, it could be just games with burning funny token they created and distributed/held. I would be shocked if they actually paid out 10 billion, no way no how.
Transparency? What transparency? LOL Setting aside the fact Tether has never secured an audit, what does it mean that “All Tether tokens are pegged 1-to-1 with a matching fiat currency and are backed 100% by Tether’s reserves”? This is not a promise to do anything. Also what is a “matching fiat currency”? It would be truly epic if some of the “matching fiat currency” is the Salvadoran colon.