Is Tether a Fraud?

[Gurujebs]

As we know Tether is getting pumped from time to time. Do you think it will be a fraud at some point? If yes , than why  ?

 It's a controversial topics in crypto currency, with many people question today it's legitimate. The main issues is that tether is supposed to be pegged to the us dollar, it's covered by real world assets. This has brought to our notice that tether could collapse if there is a sudden sell off. Moreover, is audited by third party and has so far remain stable.

It is not because Tether is pegged to the US dollar it will crash, it is because they are not back all with real US dollars in physical cash, if all the USDT that has been minted which is about $90B in amount are to be converted to the real US dollar cash i.e Fiat, it is going to be impossible to happen because what they have are not only fiat but bonds, treasury bills and many other financial instruments and since these are traditional finance instrument, some investors are always sceptical with these instruments. Even the crypto investors don't trust these instruments because they can't be trusted and since then Tether always avoided questions regarding the fiats in their vaults.

[alltalk]

It's a controversial topics in crypto currency, with many people question today it's legitimate. The main issues is that tether is supposed to be pegged to the us dollar, it's covered by real world assets. This has brought to our notice that tether could collapse if there is a sudden sell off. Moreover, is audited by third party and has so far remain stable.

For me, it is like spreading FUDs about Tether.
I ever heard the issue about USDT wasn't pegged totally with dollars. But the news can't be proven as valid news.
It is more likely as a rumor spreading around us. When it can be proven, I think we can't assume that Tether is no longer trustable.

[Peter90]

Moreover, is audited by third party

It's not audited

[Peter90]

Some of you have had thoughts. that all the collateral that Tether has might be dust in the eyes of you and me? Example: they say there is a certain amount in collateral, but in fact, exaggerate. Could that be the case?

No
Tether reserves are attested by BDO, so the collateral is there.


The problem lays here:



The name of the problem - which most users and investors are oblivious of - is counterparty risk
As I understand it when you buy USDT you take counterparty risk on yourself.
Who are the counterparties, you ask.
They are the Tether's debtors.
When you buy USDT Tether is unloading on you the risk of their investment while they keep the profits of those investments for themselves.

[Fivestar4everMVP]

As we know Tether is getting pumped from time to time. Do you think it will be a fraud at some point? If yes , than why  ?

I think I've come to the point where I actually don't know what to believe anymore, Tether have been called a scam company for years now, and yet, they still remain the number one stable coin in crypto currency, even when their competitors like USDC, DAI and some others are said to be more decentralized and a better stable coin, USDT still manages to remain at the top of its game, gaining popularity and more users/holders as each day breaks.

If I am to answer this question of wether Tether is a scam or not, I would honestly say that I don't know, but usdt have always been my number one choice when ever I need a stable coin for whatever reason.
And whether Tether will one day go away? I also can not tell, only the future can, but due to the several controversies surrounding the company; Tether, I personally don't keep too much usdt for a long time, I only convert to usdt, keep for a few days, then decided to sell it for my local currency or invest in another crypto currency with it.

[Peter90]

If I am to answer this question of wether Tether is a scam or not, I would honestly say that I don't know, but usdt have always been my number one choice when ever I need a stable coin for whatever reason.
And whether Tether will one day go away? I also can not tell, only the future can, but due to the several controversies surrounding the company; Tether, I personally don't keep too much usdt for a long time, I only convert to usdt, keep for a few days, then decided to sell it for my local currency or invest in another crypto currency with it.

You are doing right 5star,
but what's the point of stable coins?

It's not to serve crypto traders.
It's to serve ordinary people, citizens of countries with high inflation.
People completely financially unsophisticated.
Local grocery stores, fruit sellers, street restaurants, pensioners and housewives...

Stablecoins should offer a easy way to these people to save their purchasing power from inflation.
You must apply the mechanism I described above ("When you buy USDT Tether is unloading on you the risk of their investment while they keep the profits of those investments for themselves") to ordinary people, then you will see the dimension of the problem.

When you judge cryptocurrencies and stable coins it's helpful if you stop for a moment thinking from the point of view of a crypto trader and start thinking from the point of view of ordinary people.

Cryptocurrencies - in particular stable coins - should serve primarily ordinary people, not crypto traders.

[NikeFit_7777]

No Tether reserves are attested by BDO, so the collateral is there. The problem lays here:
The name of the problem - which most users and investors are oblivious of - is counterparty risk
As I understand it when you buy USDT you take counterparty risk on yourself. Who are the counterparties, you ask. They are the Tether's debtors.
When you buy USDT Tether is unloading on you the risk of their investment while they keep the profits of those investments for themselves.

I see now why they print USDT in any quantity they want, whenever they want. Impunity and so on.

In case - in case something happens to them. They'll just write, you have to take the risks, we can't help you, sorry, have a nice day. 

P.S. I'm not trying to change your mind. Of course not, I just want everyone to remember to diversify their assets. It's important! Cryptocurrency market - not so stable + unsafe  to keep everything in one basket.

[Rex067]

As we know Tether is getting pumped from time to time. Do you think it will be a fraud at some point? If yes , than why  ?

It's very impossible to say for sure but many people has accused tether for being a fraud. it's certainly a contentious whether fraud or not.

[Gurujebs]

As we know Tether is getting pumped from time to time. Do you think it will be a fraud at some point? If yes , than why  ?

It's very impossible to say for sure but many people has accused tether for being a fraud. it's certainly a contentious whether fraud or not.

People that actually accused Tether of been a fraud has their reasons, in fact many times not one or two people came out publicly to say their mind about Tether. But personally, my only problem is that locking of accounts that bothers me. They are guilty of blocking accounts anytime they suspect a wallet that has a usdt which even kill the coexistence of Bitcoin.

I even heard they are now working with the FBI and some agency to help them reduce fraud but don't you think such will lead to bad judgment, some wallet might actually be not guilty and their account will be block which is bad and the owner can't voice out, they didn't even provide a platform for people to complain.

[Wiseman]

People that actually accused Tether of been a fraud has their reasons, in fact many times not one or two people came out publicly to say their mind about Tether. But personally, my only problem is that locking of accounts that bothers me. They are guilty of blocking accounts anytime they suspect a wallet that has a usdt which even kill the coexistence of Bitcoin.

I even heard they are now working with the FBI and some agency to help them reduce fraud but don't you think such will lead to bad judgment, some wallet might actually be not guilty and their account will be block which is bad and the owner can't voice out, they didn't even provide a platform for people to complain.

I agree with you, this is a very bad trend, but we have a choice and we may not hold Tether or not hold it a lot and for a long time, we use it for trading and for storage, but judging by the way Tether is managed and the fact that it can be selectively blocked this is very bad .

[cebo]

As we know Tether is getting pumped from time to time. Do you think it will be a fraud at some point? If yes , than why  ?

For a long time, Tether's price has remained stable at around 1 dollar, where do you say "Pumped"?

Can you provide proof that this Tether was pumped to more than 1.5 USD for 1 Tether?
Or maybe I haven't found it yet something Pumped from Tether?

[NikeFit_7777]

By the way Tether was repressed in Canada last year, for example coinbase and others removed the possibility to trade in pairs with USDT. By the way, is there anyone who lives in Canada, how has it affected your trading, since a year is coming up?

P.S. It is very interesting to get an answer to this question from knowledgeable users.

[bitterguy28]

I also have a little USDT in a CEX wallet like Binance because just to anticipate if this USDT becomes a scam, I don't lose too much.
I think USDT is not a fraud because USDT has a level of trust from all investors and traders because we can see that the USDT market is spread everywhere.
But there are still many who say that USDT is a coin that will be a scam because USDT does not have a money supply that matches the real one.I'm sure the people who think that USDT will be a scam are people who understand finances in blockchain technology, they are not just random people.

the same, for me USDT is the savior of my assets, if  crypto is not doing well, but with this news 75% I'm afraid I will lose a lot if it's true that USDT is a scam, but is that possible? That's my question?

Don't listen to those who tries to make people confused  how USDT is working , and besides this is the coin that keeps saving cryptonians from possible trouble when time comes of crypto is dumping so bad .
I myself have been saved by USDT many times before and until now i keep having this as backup currency for my investments.

[ScamViruS]

As we know Tether is getting pumped from time to time. Do you think it will be a fraud at some point? If yes , than why  ?

Tether does a lot of things keeping us in the dark, the crypto community has many complaints against Tether but Bitfinex and Tether continue to do many illegal activities. But Tether is now so big that any action against them will have a huge impact on the crypto market. So the crypto community should gradually reduce its reliance on Tether and look at other stablecoins to reduce the power of USDT in the crypto market, but this is a very difficult task to do.

[erus]

By the way Tether was repressed in Canada last year, for example coinbase and others removed the possibility to trade in pairs with USDT. By the way, is there anyone who lives in Canada, how has it affected your trading, since a year is coming up?

P.S. It is very interesting to get an answer to this question from knowledgeable users.

It's very scary that Canada prohibits trading USDT, I don't understand where the error lies with USDT in Canada.
Including large markets such as Coinbase which prohibits USDT trading in Canada, perhaps other members have a better understanding of this issue.
Or maybe there are members on altcoinstalks who are originally from Canada, why does this problem occur.