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USD Digital coin - backed by the US Dollar, can we trust?

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aage

aage

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Sep 20, 2012
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In my blockchain wallet I saw they support the USD Digital Coin (USD-D) they claim it is backed by the US Dollar, making it a Stablecoin.

Can some of the Gurus around here tell me if you would put 20K euro into that coun and feel safe, sleep well at night and all this doing so?

How trust worthy is this compared to all the other coins?
 
I didn't know about that coin, I looked in coinmarketcap and I didn't find that‌ symbol. I won't trust that amount of money, specially if I can't use it "easily"‍ like TUSD, GUSD or USDC
 
How safe are investments in stable coins like USDC, USDT or EURS in reality?
Who is really regulating the price?
I think is must be a company. What happens, if‌ this company gets closed by government?

Or if this company is a fraud and not‍ holding the money.
 
As Martin said, USDT is not⁤ 1:1 backed by US dollars and no one have proved that the company behind Theter⁣ even have the money they claim. (Theter is by far one of the most controversial⁢ stablecoins)

But beside that, I think you need to choose the stable coin which companies︀ actually need, for example USDC or BUSD aee used by the exchanges so they "should"︁ be alive while those sites are running.

There are others like TUSD where they say︂ they are audited monthly but we know that we should not fully trust on that︃ either.

And you also have coins like GUSD that claim they are the most regulated︄ stable coins.

Choose the stable coin from the company you trust the most but I︅ won't put too much money on them. I have been using them to get +5%︆ APY in some sites with an small part of my money.
 
No No. Never "put" anything in a stable coin to hold as an investment or‌ saving. By design, they are all fractional reserve and the owners intervene on markets to‍ keep the trading price at a desired spot price. To keep the party going. The⁠ Market Cap of a stable coin is never equal to the number of dollars/euros/yen backing⁤ it.

At the end of the day, they will stop supporting the price, once it⁣ becomes too costly.

I use stable coins for in-and-out when the margin is very low,⁢ and having a BTC invoice settled in 3-5 days means that I could sell at︀ a loss. KYC/AML free transactions in a low margin businss is the only valid use-case︁ for a stable coin.
 
I'd spread it on several stablecoins & Defi accounts.

That way everything is not lost‌ if one stablecoin or service provider collapses.

When it comes to hyperinflation or devaluation of‍ the currency itself that is another question alltogether off course!

Another interesting thing with stablecoins⁠ is this: if (or when) there is a bail-in, stablecoins in your own wallet cannot⁤ be confiscated! 🙂
 
What about the‍ cash backing the stablecoin after a bail-in? Won't you be left with tokens backed by⁠ thin air? Those coins will trade like Hertz shares until people realize the assets behind⁤ it are gone.
 
do you believe USDT and their cryptocapital narco dollars connections, money frozen in poland, crazy‌ tether issuance, backed by "2b usd" that then was unmasked and they had to come‍ out clean , or at least as clean as possible, and say it "wasnt really⁠ 2b usd in the bank.. but part money, part assets.."

so why not believe usdc⁤

lol..

if you in the rain, you gonna get wet. 🙂)
 
Love sitting around and discuss which crypto goes down first when they pull plug on‌ the net.
 
Yup. If Wirecard Bank in Germany has‌ fraudulent claims about cash it has on deposit then what chance does this nothing crypto‍ company have....lol.
 
A USD Digital token is not itself a US dollar, but Paxos Trust Company, LLC‌ is responsible for backing each token with a US dollar held in segregated accounts at‍ FDIC-insured, U.S. banks. Paxos Trust Company, LLC is also responsible for issuing and redeeming each⁠ token in exchange for $1.00 USD. So, i would not recommend trusting it completely.
 
So that is, when this "stablecoin" is also owned by a private company, its credibility‌ is the same as with any other company. In this industry, you just have to‍ expect that there are most upcoming scandal-hit businesses due to lack of control. Therefore, the⁠ conclusion must be that you keep your fingers away.
 
You are completely wrong. Very weak argument.
If humanity invented the knife there are people⁠ who kill with it at the same time there are people who use it to⁤ cut food.

Same with internet companies in 2000xx

Same with stablecoins.

It is clear that⁣ USA can do anything to freeze dollars (liberty reserve, egold etc) they want especially for⁢ foreigners and specifically crypto related when they need to. But EU is a different ‘knife’.︀ Look France, Germany, Lichtenstein, Swiss, Malta moving to introduce crypto LAWS.

If i were to︁ bet, euro stablecoins will stand to benefit the most. Its like an on demand audited︂ EMI.
 
Sir, in the world of institutionalized trading companies take credit risks and balance sheet risks on⁤ one or another multiple times per day.

You can have an agreement with the stablecoin⁣ issuer to access its balance sheet, when necessary. Thats the most comfort you can get⁢ transacting with the assets without clearing/settlement agent.

It is definitely better than to have something︀ in the bank since its not your money in any bank you store it. Its︁ the banks money. Levered. Insured up to 100k only.

People just know very little about︂ credit risks and how to measure that properly
 
Whats this got to do with anything what⁠ you smoking...lol?

Show me Tethers audited financials please so I⁢ can examine where I am wrong..lol?

P.S Stick to selling your stuff on here and︀ DON'T PM me again saying your having a hardtime building trust and offering me discounts︁ on your products to bolster your cred on here as I am not interested...lol. I︂ play straight with people on here and won't fall for whatever it is your up︃ too. ca#"!
 
Sorry what?

I never said to trust tether. In fact i am certain it will‌ collapse one day like liberty reserve.

It does not mean all stablecoins are bad and‍ should be avoided. Some are much better than most offshore banks which will soon cease⁠ to exist
 
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