Will USDT be dead now after UST and Luna ?
- Thread starter onlinemarketer12
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Unreliable Witness
Senior Member
- Apr 21, 2016
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No, they can screw around. Tether is completely unregulated. Nor is there a watchdog. Its the wild west.
Unreliable Witness
Senior Member
- Apr 21, 2016
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I'd say its less fear and just a risk assessment. And as for doubt, if Tether was above board, it would be good business to be more transparent. What have they to lose by giving the detail of which companies' corporate paper they hold?
jasonforrest
Regular Member
- Jun 30, 2014
- 434
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Do you understand the fundamental differences between UST & USDT/USDC/BUSD/GUSD ?yes it is... until it collapses like UST
I don't think you do.
jasonforrest
Regular Member
- Jun 30, 2014
- 434
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BTC, yupExactly Even UST was strong , trusted great project now its worst than Sh*t coin. Only trusted coins for now are BTC , ETH
Cheers
seomaster5
Elite Member
- Oct 31, 2021
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Why do you think so ? Even no one thought this about ust.
paisawaisa
Elite Member
- Mar 23, 2022
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What is the difference?
GhostVision
Elite Member
- Aug 3, 2010
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Of course I know the differences.... but usdt only in our dreams he has something real behind him
jasonforrest
Regular Member
- Jun 30, 2014
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UST was backed by a broken algorithm, it broke, and collapsed
USDT/USDC/etc are backed by actual $USD and/or assets, so every dollar is accounted for which would prevent any $1 peg collapse.
jasonforrest
Regular Member
- Jun 30, 2014
- 434
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If you know the difference then you know UST was capable of collapse a long time ago.Of course I know the differences.... but usdt only in our dreams he has something real behind him
AND
that USDT/USDC/BUSD/etc will not collapse as long as they have reserves strictly at $1 reserve per $1
GhostVision
Elite Member
- Aug 3, 2010
- 2,651
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if you know that about ust... why didn't you post this a few months ago? that it's a broken algorithm
USDT can for every dollar in the happiest case, he has 10 cents behind him.... 1USDT and 0.1USD in assets... Does that give you confidence?
jasonforrest
Regular Member
- Jun 30, 2014
- 434
- 143
if you know that about ust... why didn't you post this a few months ago? that it's a broken algorithm
USDT can for every dollar in the happiest case, he has 10 cents behind him.... 1USDT and 0.1USD in assets... Does that give you confidence?
If you really listen to me you'd know I always say that 99.9% of altcoins are broken and holding Bitcoin (ONLY) is the best way to gain value in the long term.
I've said this 100 times.
And no, you're wrong about USDT, they have a $1 reserve per $1 USDT.
GhostVision
Elite Member
- Aug 3, 2010
- 2,651
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keep dreaming
jasonforrest
Regular Member
- Jun 30, 2014
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Tether was investigated many times from many agency including CFTC. If you have evidence better than CFTC, please present that evidence here, now otherwise, you're spreading lies and FUD intentionally, for what? What is your incentive?
otherwise, you're spreading lies and FUD intentionally, for what? What is your incentive?
Unreliable Witness
Senior Member
- Apr 21, 2016
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The results of the investigation by the New York Attorney General were as follows...Tether was investigated many times from many agency including CFTC. If you have evidence better than CFTC, please present that evidence here, now
“Bitfinex and Tether recklessly and unlawfully covered-up massive financial losses to keep their scheme going and protect their bottom lines,” said Attorney General James. “Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie. These companies obscured the true risk investors faced and were operated by unlicensed and unregulated individuals and entities dealing in the darkest corners of the financial system. This resolution makes clear that those trading virtual currencies in New York state who think they can avoid our laws cannot and will not. Last week, we sued to shut down Coinseed for its fraudulent conduct. This week, we’re taking action to end Bitfinex and Tether’s illegal activities in New York. These legal actions send a clear message that we will stand up to corporate greed whether it comes out of a traditional bank, a virtual currency trading platform, or any other type of financial institution.”
From https://ag.ny.gov/press-release/202...l-currency-trading-platform-bitfinexs-illegal
If you believe that since the investigation Tether has cleaned up its act, please tell us exactly what assets Tether is backed by - who issues the commercial paper that makes up about a third of its value.
Otherwise, you're just spreading misinformation about the risk that holders of Tether take.
jasonforrest
Regular Member
- Jun 30, 2014
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Hey @Unreliable Witness were you going to post the other side too?
"Following several years of investigation and access to extensive information about the companies and their operations, the CFTC has concluded its review. The CFTC’s Order found no issues relating to Tether’s current operations. In fact, the Order related to certain disclosures about the reserves from more than two and a half years ago. As the Order recognizes, these issues were fully resolved when the terms of service were updated in February 2019."
From: https://tether.to/en/statement-on-tethers-settlement-with-the-cftc
"Following several years of investigation and access to extensive information about the companies and their operations, the CFTC has concluded its review. The CFTC’s Order found no issues relating to Tether’s current operations. In fact, the Order related to certain disclosures about the reserves from more than two and a half years ago. As the Order recognizes, these issues were fully resolved when the terms of service were updated in February 2019."
From: https://tether.to/en/statement-on-tethers-settlement-with-the-cftc
Unreliable Witness
Senior Member
- Apr 21, 2016
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Its maybe better to look back on what the CFTC have written rather than a Tether statement.
As background, the CFTC was only investigating the period up to 25 February 2019, even though the settlement concluded in October 2021 (it takes time to investigate). Specifically, it was investigating the claim (at the time by Tether) that all USDT was 1:1 backed by fiat currency in Tether's bank accounts, i.e. for every USDT, Tether had 1 USD (or equivalent value in another fiat currency such as Euros) in its bank account.
The summary of the outcome can be read at https://www.cftc.gov/PressRoom/PressReleases/8450-21 and the full order at https://www.cftc.gov/media/6646/enftetherholdingsorder101521/download
The CFTC "finds that from at least June 1, 2016 to February 25, 2019, Tether misrepresented to customers and the market that Tether maintained sufficient U.S. dollar reserves to back every USDT in circulation with the “equivalent amount of corresponding fiat currency” held by Tether and “safely deposited” in Tether’s bank accounts. In fact Tether reserves were not “fully-backed” the majority of the time. The order further finds that Tether failed to disclose that it included unsecured receivables and non-fiat assets in its reserves, and that Tether falsely represented that it would undergo routine, professional audits to demonstrate that it maintained “100% reserves at all times” even though Tether reserves were not audited."
In other words, Tether's marketing said that all USDT was backed 1:1 with fiat currency when it wasn't. Interestingly, the CFTC found that it was 'backed' with unsecured receivables (debts that might not be recoverable), which is what a significant proportion of USDT could continue to be backed with (the commercial paper that makes up 31% of its reserves). Of course, I don't know because Tether doesn't disclose exactly what the commercial paper is, but if it is now secured, why not disclose the fact that it is secured?
But then Tether might not really know either because "The order recognizes that Tether has not completed an audit of the Tether reserves." That statement is in the present tense, so I assume it is true as of the date of the publication of the order - October 2021. Additionally, until 2018, Tether had a manual process for calculating the value of reserves, which was only periodically updated.
To come back to your post, I don't disagree with anything that Tether states in its press release:
Tether's claim that "The CFTC’s Order found no issues relating to Tether’s current operations." is true. It is true because the CFTC was not looking at Tether's current operations (as at October 2021 when Tether put out that press release) - only those up to the date it started investigating.
The order did relate to certain disclosures about the reserves from two and a half years prior. That is what the CFTC was investigating.
The issues (that Tether was lying about holding 1 USD equivalent of fiat currency for every USDT minted) were fully resolved because Tether changed its claim to every USDT being backed by 1 USD worth of assets.
But the findings of the CFTC don't exonerate Tether. In fact, they show that Tether misrepresented (lied) about what USDT was backed by, that some of the cash that it was in fact "backed" by were held in bank accounts owned by other companies, and that there were no contracts (evidence of legal obligations) with other companies whose "commercial paper" it supposedly held.
You also have to remember that the CFTC's investigation was "settled" by Tether agreeing to pay $41million. Part D of the Order is interesting - in return for the payment, the CFTC agreed to limit the reporting of what it found to that which Tether consented. In other words, if Tether hadn't settled, the CFTC might have released other information.
The CFTC Order doesn't answer the question of how liquid Tether is today. To repeat what I wrote in an earlier post, if the holders of $74 billion wanted to exchange their USDT today, could Tether find that $74 billion? Or would the holders have to accept a lower value than 1 USD? If they would have to accept a lower amount then the coin isn't stable.
We just don't know because Tether isn't transparent. That is a risk that holders of USDT should factor in to their decision to hold.
iftikharkti
BANNED
- Apr 12, 2018
- 101
- 9
yes possible...now days very careful
cerealesbuenos
Newbie
- Dec 13, 2021
- 24
- 10
I believe USDT could see a drop on his price a lose parity. They want to keep their back up assets in private, what it makes me think that there's not as mush as they claim.
cerealesbuenos
Newbie
- Dec 13, 2021
- 24
- 10
Luna came back to life as Terra Classic ($LUNC), as well as a re-work with Terra 2.0 ($LUNA). Most exchanges adopted Terra 2.0 and allow to trade with both of them.