Please let this turn into a run on the bank to kill USDT once and for all. This is an emergency alert! Tether has broken the peg and is crashing. Trust in Tether is fading and huge upspikes in the market are occurring as Tether holders retreat to more decentralized options.
It's moments like this that will prove that stable coins backed in a bank are not to be trusted. This is why Maker and Dai will reign supreme in the space. Dai has already reached the top 100 and Maker is nearing top 20.
Dai and Maker currently have zero exposure to mainstream exchanges. Being listed on a few of them will increase their value by a ton. This is especially true when considering a stable coin versus a store of value. The entire point of the stable coin is to be traded to avoid losses; a function that Dai could provide much easier with more exposure.
More than likely Tether will stabilize very soon, but this is still very big news. Why can't a stable coin that's supposed to be backed by 100% dollars in a bank provide the liquidity to maintain the peg? It's not like the market is especially volatile right now. What's the excuse? What's going to happen during a huge bull run when everyone's going to want to cash out their stable coins? Will Tether have the funds to buy back their own coins and burn them to keep the value up? Only time will tell.
Even ignoring the possibility of a bull run, Tether is tied to Bitfinex. If Bitfinex get's attacked or crashes Tether will also lose it's peg. This is yet another centralization risk.
Even ignoring Dai, lots of competition is entering the space. TrueUSD, Cloud, Gemini, and others will all start leeching market cap away from Tether.
If they are running a fractional reserve like many speculate, it's only a matter of time before they become insolvent.
Maybe I am a pessimist, but I bet that Tether does not have the funds to back up USDT.
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You got a 24.85% upvote from @oceanwhale courtesy of @discernente! Earn 100% earning payout by delegating SP to @oceanwhale. Visit www.OceanWhaleBot.com for details!
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Edited:
Deleted.
I hope to remember to refrain from responding to edicted in the future.
Also, unfollowed.
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flagged for bid bot abuse @steemflagrewards
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Steem Flag Rewards mention comment has been approved! Thank you for reportingthis abuse, @themarkymark.
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You got a 100.00% upvote from @luckyvotes courtesy of @atempt!
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lol you've deleted nothing. This is an immutable blockchain. Here. let me grab that for you.
block: 26826013
opperation: 21
@atempt:
body: "https://steemit.com/cryptocurrency/@fortified/re-fortified-brock-pierce-or-is-billionaire-bitcoin-board-member-founder-of-tether-and-alleged-pedophile-a-covert-cia-asset-20180118t181617300z"
"Deleted." You're a funny guy. Every action you take lives on the blockchain FOREVER.
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If you want me to reverse that flag, just ask. I did it to prove a point it wasn't serious. Just look at how easy it is to get under your skin. The value of Steem will skyrocket when all the Internet trolls realize how easy this is. Cost me $0.15 to throw you into a tailspin.
Just think about how much $1.50 would set you off. I can't believe that people here let themselves go into a fit of rage over one minutes' worth of work in the real world.
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This comment has received a 61.73 % upvote from @steemdiffuser thanks to: @stimialiti.
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I was always skeptical of Tether. I haven't invested any of my real money into a coin besides what is traded currently on Coinbase but Tether always seemed like it was a sham.
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I always thought that in a bind bitfinex would have it work like STEEM & the STEEM Backed Dollar. As long as bitfinex has bitcoin they could just pay 1 usd worth of bitcoin rather than 1 actual USD
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Indeed! But if they do that at a loss and never get that money back they'll be insolvent. The second Tether knows they'll be insolvent with no point of return they will simply steal everyone's money and go dark. I've read that it wouldn't even be illegal for them to do this because of a lack of regulation.
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Ehhh thats the thing. It technically is legal, and thats more than likely what they'll try to do, but they're dealing with the kind of money that would still have the everybody coming after them, just like Karples.
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Tether still hasn't had a proper audit done. It could be that it's not really backed up by USD but actually cryptos. Claims have been made that Tether has been printed out of thin air to boost the price of Bitcoin. The jury is still out there.
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Interesting, now wondering how many millions they will have to pour in to try to stabilize it, the mind boggles at the thought.
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