Home Altcoins News Tether (USDT) the Money Market Fund is Down!

Tether (USDT) the Money Market Fund is Down!

Tether USDT

Tether (USDT) served as the money market fund for several investors in the cryptocurrency space.  They have been using it to buy crypto and were comfortable playing around with USDT when fiat to crypto conversions were hard.

Around couple of weeks back there was a notice that there might be trouble getting back $1 for each token. Will there be a liquidity shock if such a trend sustains? Will a loss in the confidence of Tether would trigger a liquidity shock.

On a lighter tone:  Do not rush into investing in any financial instrument you have little or no knowledge on just because people are doing it. Here I was last week with a friend who bought USDT a supposedly stable coin and bitterly complaining about his investment not appreciating above $1. 

Meanwhile BitStamp have expressed that it is possible for users to place Limit orders on some of their new USDT pairs.

Also the TOR Project Expressed, Running relays for the Tor network is a daily activity for thousands of volunteers and relay associations around the world. Without them, there is no Tor.

In reply Tether stated, Tether supports the EEF.

Everyone are like:  Tether is Stable.

Critics: Stablecoins are meant to be transparent and known coins like Tether have fallen short in the past. Stability should be transparent and backing should not be impacted by market conditions.

Tether has updated the ERC20 contract address for Tether Euro (EURt) Tokens! The old contract address for EURt is now deprecated.

We have no idea what kind of loans those are or who they are to and we don’t know what kind of paper they’re buying.  It’s all a concern, we need more disclosure.

Sebastian Mellen, CEO of Cerebrum Inc expressed, at this point, the consequences of Tether blowing up will be more grievous than the demise of Madoff and Theranos. With Madoff, wealthy people lost money, same with Theranos. Now, a nation-state has adopted a currency backed by sordid IOUs. This should be a much bigger story.

Tether issues and redeems one USDt for one dollar: no more, no less.  Unless everyone wants to redeem and there is a run on Tether, BUT one day Tether will unwind. Businesses who are bitcoin dependent or who use bitcoin to an appreciable degree will be compromised.

I sold all USDT for USDC. I never liked/trusted them.

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James

James T, a passionate crypto journalist from South Africa, explores Litecoin, Dash, & Bitcoin intricacies. Loves sharing insights. Enjoy his work? Donate to support! Dash: XrD3ZdZAebm988BfHr1vqZZu6amSGuKR5F

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