- Nov 22, 2019
- 6,959
- 1,681
Do you think now the next in queue is USDT because it is also imaginary and not backed by anything ?
Will USDT be dead now after UST and Luna ?
- Thread starter onlinemarketer12
- Start date
cryptoniancs
Banned - Shitlisted and did not do the right thing
- Mar 2, 2022
- 110
- 17
i dont think it will be down
alurosu
Elite Member
- Jun 16, 2020
- 2,188
- 1,658
We'll just have to wait and see
SocialManager
Elite Member
- Nov 26, 2018
- 3,155
- 3,678
You are lying to people and it's not OK. USDT is absolutely backed by real assets. It may not be FULLY backed 100% of the time, but they definitely have assets in American institutions backing your USDT.
jasonforrest
Regular Member
- Jun 30, 2014
- 434
- 143
UST was an algorithmic stablecoin, USDT is backed by USD & equivalent reserves.
USDT is fine.
Unreliable Witness
Senior Member
- Apr 21, 2016
- 837
- 627
The issue isn't whether the assets are real, the issue is whether the assets could be liquidated at par if enough holders of Tether wanted to cash out within a short time period.
I could create commercial paper by incorporating a company and then exchanging something I own for a debt by the company. As an example, I could agree with the company that in return for an artwork I've created, it owes me $1,000,000,000. In accounting terms, that is a real asset. We could also keep the details of the deal secret.
Without knowing what commercial paper Tether holds you cannot be sure that it could be sold or exchanged for its supposed value. The question is if the commercial paper is really worth what Tether say it is, why not disclose that? You'd increase trust in Tether hugely and encourage more people to use it.
If the commercial paper turns out to be issued by companies in the crypto space (e.g. exchanges such as Bitfinex), then you'd understand why Tether is so reluctant to disclose that. If the value of the crypto market dropped suddenly (say an algorithmic stable coin ran into problems) and the exchange was holding those coins then the exchange might not be able to repay its debt if the commercial paper was called in. That would make Tether depeg, which would further destablise the company(ies) issuing the commercial paper, further destablising Tether.
In terms of valuation, its possible to pay an accounting firm in the Cayman Islands (which can't easily be sued if it is wrong) to value the commercial paper at a certain value. The accounting firm has an interest in making sure that it keeps its clients happy by doing what they want. And being in the Cayman Islands, the firm can't easily be sued by holders of Tether if its valuation is incorrect. So you can't really trust that an assurance opinion by an unaccountable (excuse the pun) accounting firm is correct. That is especially the case when more reputable international accounting firms (who I'm not saying aren't also open to bribes) have turned the work down. Its an easy fee to certify that the value of $1 of debt issued by a large blue chip company such as Google is trading at $1 after all.
That Tether doesn't disclose whose commercial paper it holds (instead calling it secret sauce) suggests that if there were a crisis and holders wanted to sell, they might not be able to sell for 1 USDT = 1 USD.
I don't know. I could be wrong. But the point is that only people at Tether know, which is a strange situation if everything was watertight.
randomstrings
Supreme Member
- Feb 3, 2021
- 1,325
- 853
I trust usdt more than my momma.
Unreliable Witness
Senior Member
- Apr 21, 2016
- 837
- 627
I do too.
HustleTong
Elite Member
- May 30, 2019
- 13,466
- 10,660
USDT is a solid asset, dear
GhostVision
Elite Member
- Aug 3, 2010
- 2,651
- 1,389
- Dec 9, 2014
- 4,218
- 1,386
yes it is... until it collapses like UST
Exactly Even UST was strong , trusted great project now its worst than Sh*t coin. Only trusted coins for now are BTC , ETH
Cheers
Nocan
Regular Member
- Jul 9, 2020
- 407
- 458
UST wasnt backed by any real assetExactly Even UST was strong , trusted great project now its worst than Sh*t coin. Only trusted coins for now are BTC , ETH
Cheers
USDT and USDC are
- Dec 9, 2014
- 4,218
- 1,386
OH!! without knowing only you think investors invested billion of $$ ? If your theory was right it wouldn't even reached in top 10 coins. When its down everyone says we know already !!!
SocialManager
Elite Member
- Nov 26, 2018
- 3,155
- 3,678
Wtf is this supposed to mean? It's clear you don't understand what you are talking about.
ristoriel
Banned - Multiple Rules Violations
- Aug 24, 2020
- 4,183
- 1,656
I read somewhere that USDT is connected to USD in the backend. We don't know about it, but it is connected to USD. If you observe closely, you would find that the value and rate of USD and USDT are always the same.
Hence, I don't think that USDT would ever crash. In my opinion, after Ethereum and Bitcoin, USDT is one of the most stable coins.
Hence, I don't think that USDT would ever crash. In my opinion, after Ethereum and Bitcoin, USDT is one of the most stable coins.