Why is Tether considered a stable coin?
- Thread starter JohnLocke
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US mortgage backed securities were trading at par for a while as well. Tether is not pegged to anything. It is backed by something. Some assets nobody really knows where and how much.
What it is also backed with is a desire of its management to persuade the market it will trade 1to1 and they use customers funds to prop up the market when it looses confidence (happened couple times already).
One day tether will trade to zero and not everyone will be able to liquidate.
Nobody knows when will that happen though
What it is also backed with is a desire of its management to persuade the market it will trade 1to1 and they use customers funds to prop up the market when it looses confidence (happened couple times already).
One day tether will trade to zero and not everyone will be able to liquidate.
Nobody knows when will that happen though
Tether was specifically designed to build the necessary bridge between fiat currencies and cryptocurrencies and offer stability, transparency and minimal transaction charges to users.
Yea USDC by Circle | USD Coin (USDC) Stablecoin is the most legit, US based and follows all the regulatory framework in the US. almost 3 billions USDC issued already.
there is a lot of speculations that it is going to be used by the Federal reserve when they issue a digital dollar, whether︀ this is true or not at least they have all the technical requirements to allows︁ the control and management a central bank would want.
Paxos I mentioned earlier is kind︂ of in the same boat in regards to US laws and regulations, there is also︃ Gemini dollar (GUSD) | Gemini
there is a lot of speculations that it is going to be used by the Federal reserve when they issue a digital dollar, whether︀ this is true or not at least they have all the technical requirements to allows︁ the control and management a central bank would want.
Paxos I mentioned earlier is kind︂ of in the same boat in regards to US laws and regulations, there is also︃ Gemini dollar (GUSD) | Gemini
Like Ripple, USDT is on all the exchanges because of hard-nosed business people that strike deals. Remember, there's no regulation here, and unlike Bitcoin and MakerDAO which are based on rules, USDT is based on nothing, just your faith in shady people.
And that is the most important part. We already discussed in another thread how USDT is not backed 1 to 1 with USD but a basket of garbage run by cowboys some of the USD which went missing and was the subject of an investigation.
https://www.coindesk.com/bitfinex-ny-prosecutors-tether-850-million-allege
Now CTO is saying the below as he feels the heat.
https://cointelegraph.com/news/relax-tether-won-t-be-targeted-by-sec-says-bitfinex-cto
https://www.coindesk.com/bitfinex-ny-prosecutors-tether-850-million-allege
Now CTO is saying the below as he feels the heat.
https://cointelegraph.com/news/relax-tether-won-t-be-targeted-by-sec-says-bitfinex-cto
USDC is the most reliable USD stable coin out there, I would trust the company Circle behind it as much as a bank personally. there were rumors recently that it would be used by the fed to create the US digital currency.
DAI is also interesting, it is control by︀ a DAO with a decentralized governance. more risky obviously.
DAI is also interesting, it is control by︀ a DAO with a decentralized governance. more risky obviously.
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