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Cryptocurrency Ecosystem => Stable Coins Forum => USDT Forum => Topic started by: MrSpasybo on January 17, 2024, 11:56:43 PM

Title: Tether's proof-of-reserve: sometimes the truth is not important
Post by: MrSpasybo on January 17, 2024, 11:56:43 PM
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.

(https://www.tradingview.com/x/dYY7SSMI/)

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' (https://www.coindesk.com/business/2024/01/16/big-wall-street-ceo-addresses-controversy-around-tethers-stablecoin-assets-they-have-the-money/)
Title: Re: Tether's proof-of-reserve: sometimes the truth is not important
Post by: KryptoBull on February 15, 2024, 04:46:37 PM
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.
Title: Re: Tether's proof-of-reserve: sometimes the truth is not important
Post by: MrSpasybo on February 28, 2024, 05:33:06 PM
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.
Title: Re: Tether's proof-of-reserve: sometimes the truth is not important
Post by: NikeFit_7777 on March 04, 2024, 05:31:45 PM
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.  8)

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
Title: Re: Tether's proof-of-reserve: sometimes the truth is not important
Post by: dkbit98 on March 06, 2024, 07:21:42 PM
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
Title: Re: Tether's proof-of-reserve: sometimes the truth is not important
Post by: MrSpasybo on March 12, 2024, 04:26:54 PM
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.  8)

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 ^^
Title: Re: Tether's proof-of-reserve: sometimes the truth is not important
Post by: Gurujebs on March 12, 2024, 04:43:59 PM

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.
Title: Re: Tether's proof-of-reserve: sometimes the truth is not important
Post by: MrSpasybo on March 17, 2024, 01:28:35 PM
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.
Title: Re: Tether's proof-of-reserve: sometimes the truth is not important
Post by: bitmover on May 08, 2024, 08:59:41 PM
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.

Nobody should accept a high risk with Tether or any other stable coin.

As far as I know, Tether is highly regulated and it shows it reserves regularly
https://tether.to/en/transparency/?tab=reports

The risk should be close to 0, as the reward is zero as well. There is no way to be profitable just by holding Tether,  so the risk/reward must be very low as well.
Title: Re: Tether's proof-of-reserve: sometimes the truth is not important
Post by: dkbit98 on May 08, 2024, 09:46:13 PM
The risk should be close to 0, as the reward is zero as well. There is no way to be profitable just by holding Tether,  so the risk/reward must be very low as well.
If you are holding tether tokens than you are probably already losing money because of inflation of USD and all other fiat currencies, even if you don't notice it directly  :P
I heard tether is now expanding to Europe, but I dont think regulators will allow them to exist for much longer, since they are working overtime to introduce CBDC crap.
Title: Re: Tether's proof-of-reserve: sometimes the truth is not important
Post by: MrSpasybo on May 10, 2024, 09:38:50 PM
If you are holding tether tokens than you are probably already losing money because of inflation of USD and all other fiat currencies, even if you don't notice it directly  :P
I heard tether is now expanding to Europe, but I dont think regulators will allow them to exist for much longer, since they are working overtime to introduce CBRC crap.
In the investment journey to generate profits, we are still forced to ensure safety, and stablecoins are the best solution we can have at this time and Tether is serving this huge demand of crypto investors with a marketcap of over $100B. The impact of inflation is the trade-off to ensure the safety of the account and the investment profit will be enough to cover the entire impact. In addition, the return on Saving USDT on CEXs is also attractive and higher than the USD savings interest rate at traditional banks.

CBDC has been mentioned in the EU for a long time but has not been able to be applied due to management issues and the negative impacts it can have on commercial banks and the entire economy. I think the EU will not risk arbitrarily introducing and applying CBDC in the next few years, temporarily they are focusing on testing and monitoring MiCA.
Title: Re: Tether's proof-of-reserve: sometimes the truth is not important
Post by: dkbit98 on May 10, 2024, 10:33:02 PM
I think the EU will not risk arbitrarily introducing and applying CBDC in the next few years, temporarily they are focusing on testing and monitoring MiCA.
Sorry but you didn't do any good research about this.
It's not that hard to find actual documents proving this and they have they have serious plans to introduce mandatory CBDC by 2030.
First they plan to start optional with giving people ''free'' CBDC credits, but if they can't do it in peace they will just create another big war, and than hide in their holes like rats, while regular people die fighting each other.
Title: Re: Tether's proof-of-reserve: sometimes the truth is not important
Post by: MrSpasybo on May 11, 2024, 11:32:13 PM
Sorry but you didn't do any good research about this.
It's not that hard to find actual documents proving this and they have they have serious plans to introduce mandatory CBDC by 2030.
First they plan to start optional with giving people ''free'' CBDC credits, but if they can't do it in peace they will just create another big war, and than hide in their holes like rats, while regular people die fighting each other.
I do not think we should be concerned with a CBDC deployment plan in 2030, which is 6 years from now. A lot can change in 6 years, especially in the crypto market with its volatile prices and regulatory landscape. For now, I'm only interested in the impact of MiCA on the EU's crypto market during the bullrun and next crypto winter. If managed well: investor financial security is ensured and governments collect attractive tax revenues, it will be a step forward for the maturity of crypto in Europe. To achieve this, I believe that the role of stablecoin as USDT and USDC will also be very important, while CBDC is still a long-term issue that we do not need to worry about too much for now.