Dear #steemit #crypto community,
I need your help on this one...
At the 3:07 mark of the Jackson Palmer video below, he begins a disucssion of #USDT #tether and its role in the crypto market, specifically Bitcoin. (This discussion concludes at the 9:36 mark.)
The most alarming points include market participant ignorance that #USDT <> #USD, potential regulation and illiquidity, and the following characteristics of the token (as stated by Jackson):
- centrally controlled
- not redeemable for anything
- "backed by reserves" from "large institutional investors"
- the group has printed over $2B without saying where the money is held
While the recent moves in BTCUSD make perfect sense technically, this video gives me pause regarding the intermediate-term future of cryptocurrencies.
These risks seem systemic to the market for #cryptocurrencies. What's your take?
Regards,
@cryptoburgh
P.S. Here's another article published yesterday, Tether Issued Its Two Billionth USDT Token Due to Seemingly Growing Demand, that raises some of the same questions.
Disclaimer: This isn't an endorsement of any asset, trade, method or service. Do your own homework. Only risk what you can lose.
@ummjackson Clearly I'm a #steemit noob, not knowing you're on here. I could have saved myself the time it took to share your video and just commented on your post! Do you think #USDT #tether is a systemic risk to crypto? Seems somewhat likely based on your comments. Thanks for the video(s)! BTW, how in the world do some accounts on here post constant nonsense and make hundreds of dollars per post?!
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