Tether (USDT) Explained - Is Tether a Scam?
If trade cryptocurrencies, you probably come across the most infamous stable coin : Tether (USDT). Tethers are pegged to the USD dollar and are used in many exchanges that don't deal with Fiat (Binance, Poloniex, Bittrex). On paper 1 USDT can redeem $1 USD from the Tether platform, but there has been a lot of accusations of a Scam. This video explains what Tether is and its limitations.
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What does that mean about Binance then?
There is something similar to Tether is called “DAI” or “Maker” .. have you noticed it? Would like to know your opinion guys if someone has ever used it ?
Link to its page here.. I d like to know your opinion about it guys :
https://makerdao.com
Thanks for the update. I'm sure something is going to go wrong with Tether at some point.
I want to watch any coin that is tied to fiat crash and burn into a slow painful death.
Do you feel this way related to Steem Dollars?
Not enough people tend to know a lot about USDT.
I stay away for any centralized project, I only truat in code!
Yes, Tether has the potential for abuse.
Just stay in Bitcoin. They have to constantly print tether
Problems that I see with this situation are still that Tether Co is owned and operated by Bitfinex. That definitely seems like a conflict of interest.
This is especially made clear when you realize that they keep saying they have all this money, but there's never been an audit. I believe they firm they said they were hiring has said they were never even approached to do an audit.
The way they get money into Tether (since the last time I checked, they have no banking) is to create demand for USDT through purchases by Bitfinex and then move the money on paper over to Tether. It never changes accounts.
Also, they say in their own terms and conditions that they're not obligated to give you $1 for 1 USDT. It's a promise that they'll give you $1, but they state they don't have to honor that promise.
I have stayed as far from Tether as I can. I don't want to be the one holding them when it all falls apart.
Note: Not financial advice. Do your own research.
Also, remember that until recently, Bitfinex denied that they own/run Tether. And this was later proved to be an outright lie - just like their audits, which never materialize. Bitfinex and Tether are just asking to be raided by the authorities.
Actually the idea of TETHER was first discussed by Vitalik Buterin back in 2013...he discusses how this idea could collapse. TETHER runs on the bitcoin blockchain as like a token in Ethereum...I just wonder if bitcoin ever has a huge collapse..Will it crash tether? It does run on the same chain...similar to tokens running on Ethereum...I wonder what would happen to tokens if Ethereum ever to collapse... Here is an interesting video that talks about that...
The fact that Tether is not allowing for a fully transparent audit is highly suspect. Whether its legit or not I personally don't trust it and tend to avoid using it at all costs.