Tether's proof-of-reserve: sometimes the truth is not important

[MrSpasybo]

Tether, the world's largest stablecoin, has been shrouded in controversy for years. Critics allege that Tether is not fully backed by assets, and that it could collapse if investors lose confidence in its peg to the US dollar. In a recent interview, Cantor Fitzgerald CEO Howard Lutnick vouched for Tether’s legitimacy, stating that the company has the money it says it does:

"I manage many of their assets," said Lutnick, who brought up crypto in the interview that was streamed live from Davos, Switzerland. "From what I've seen – and we did a lot of work – they have the money they say they have."^[1]

But we can examine the financial incentive that Cantor Fitzgerald has to defend Tether: Cantor Fitzgerald is the majority owner of iFinex, the company that issues Tether. As such, Cantor Fitzgerald stands to benefit if Tether is able to maintain its peg to the dollar. He should protect Tether

I don't believe him, I think Tether has lied about the nature of its reserves in the past, but right now there is no reason to believe that it is still doing so. Tether has been claiming that it will supply an actual audit for years, and I hope they will do it.

Tether's capitalization is already huge, reaching over $95B, and its recent ~30B USDT minting is fueling FOMO in the market. If Tether were to collapse, it could have a ripple effect across the entire industry. The first weakness of the crypto market was resolved when Binance CEX compromised with a $4B fine, I do not expect the second weakness, the Tether reserve problem, to be exploited now, before BTC Halving takes place. We don't have evidence of fraud to accuse Tether, but we need a bit of positive information, as Lutnick’s endorsement of Tether, to put our minds at ease and temporarily focus on optimistic recovery of the crypto market

Maybe the truth is not important, investors want to hear good news, at least until the upcoming bullrun cycle is complete ^^

What do you think about this? Does Tether's proof-of-reserve really matter to you? Do you believe in Tether's audit and Lutnick's assertion?
[1] Wall Street CEO on Tether Controversy: 'They Have the Money'

[KryptoBull]

Maybe the truth is not important, investors want to hear good news, at least until the upcoming bullrun cycle is complete ^^

What do you think about this? Does Tether's proof-of-reserve really matter to you? Do you believe in Tether's audit and Lutnick's assertion?

I think every investor wants to seek profits, belief only contributes a part to their investment motivation. If they want to believe, they will believe, and vice versa.

Proof of reserves is important for stablecoins, I trust USDT so I trust Tether, there is no reverse relationship.

Many people pursue conspiracy theories, but we have seen Tether continue to exist and become strong after many years, currently Tether is holding several tens of billions of dollars in US bonds. I think we can rest assured and continue to invest in the crypto market and use USDT.

[MrSpasybo]

I think every investor wants to seek profits, belief only contributes a part to their investment motivation. If they want to believe, they will believe, and vice versa.

Proof of reserves is important for stablecoins, I trust USDT so I trust Tether, there is no reverse relationship.

Many people pursue conspiracy theories, but we have seen Tether continue to exist and become strong after many years, currently Tether is holding several tens of billions of dollars in US bonds. I think we can rest assured and continue to invest in the crypto market and use USDT.

7 years ago, if someone had said that by 2024, Tether would continue to be the largest stable coin issuer and USDT could reach a capitalization of $100B, I would not have believed it. But Tether still exists and holds the majority of the stable coin market share and has increasingly more reputable proof of reserves.

The market is recovering very well, I also choose to believe in Tether and hold a portion of USDT in my account. I don't expect Tether to have any problems in the future, the collapse of Tether could be a black swan for the market.

[NikeFit_7777]

I don't know why nobody writes. But today there was some positive news about Tether. For those who keep a significant % of their deposit in this stablecoin, I think it will be useful. 

The very news: "Tether has created an official recovery tool that can transfer USDT between blockchains in case of any failures."

Source: https://tether.to/en/safeguarding-tether-tokens-a-comprehensive-approach-to-blockchain-resilience-and-user-protection

[dkbit98]

Interesting news for USDT tether.
They are working on creating recovery migration tool, that in case something happens in one blockchain that fails you can always recover your coins on different blockchains.
I think there is a good chance on of supported blockchains won't exist in few years, so this could be a move in good direction, and they should include L-USDT on Liquid.
https://cointelegraph.com/news/tether-recovery-migrate-usdt-blockchains

[MrSpasybo]

I don't know why nobody writes. But today there was some positive news about Tether. For those who keep a significant % of their deposit in this stablecoin, I think it will be useful. 

The very news: "Tether has created an official recovery tool that can transfer USDT between blockchains in case of any failures."

Source: https://tether.to/en/safeguarding-tether-tokens-a-comprehensive-approach-to-blockchain-resilience-and-user-protection

Thank you for this update!
Tether is gradually strengthening the ecosystem surrounding its USDT product to help users have more confidence in the value of USDT.

I don't know if users have faced these issues when transferring USDT between blockchains, I haven't read any reports of user complaints, but Tether is improving itself based on speculation about possible issues. I like this approach of Tether and will continue to believe in Tether and USDT ^^

[Gurujebs]

I don't know if users have faced these issues when transferring USDT between blockchains, I haven't read any reports of user complaints, but Tether is improving itself based on speculation about possible issues. I like this approach of Tether and will continue to believe in Tether and USDT ^^

There this believe I have study in crypto space, every first successful coin on market cap that pass through the phase of 2017 bull run are the strongest and Tether been one of the oldest stablecoin has prove to be stronger than any stablecoins we have in the market, I might not like their approach and ways of operation but the fact that they still remain here after many allegations and still staying in the US makes them legitimate but on a personal safety, I don't keep my money on any stablecoin. Even if I want to, I might share the risk into Dai and the rest into USDT for safety.

[MrSpasybo]

There this believe I have study in crypto space, every first successful coin on market cap that pass through the phase of 2017 bull run are the strongest and Tether been one of the oldest stablecoin has prove to be stronger than any stablecoins we have in the market, I might not like their approach and ways of operation but the fact that they still remain here after many allegations and still staying in the US makes them legitimate but on a personal safety, I don't keep my money on any stablecoin. Even if I want to, I might share the risk into Dai and the rest into USDT for safety.

Yeah, even though there are many issues related to proof of reserve and facing many accusations, Tether is still the leading stablecoin issuer in the market, helping new money flow into the market easily and helping this market develop. We can be worried, but risk is a part of this market, and the risk with USDT is much lower than most crypto assets in the market like ALTS which can lose value compared to USDT dozens of times in the crypto winter.

We are investors, we need to accept the risk with Tether and should be assured that Tether is continuing to actively print more USDT to provide development momentum for the market.