Why is Tether considered a stable coin?

[Martin Everson]

Tether is a stable coin, whoes value is pegged to that of US dollar. 1 USD= 1USDT,The value of USDT can sometime fluctuate by a few decimal points due to demand but its price is never that far away from $1 mark. That's why when there is much fluctuation in the crypto currencies, Investors usually prefer to go for stable coins.

See below .

https://www.offshorecorptalk.com/threads/why-is-tether-considered-a-stable-coin.28000/post-119084

 

[reesek]

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

 

[Macy Jones]

I have reading around the forum that the crypto coin Tether is the most stable coin around the crypto market. I also read it in a few books about using crypto as alternative currency.

Now if I'm looking at Tether, Tether (USDT) price, charts, market cap, and other metrics | CoinMarketCap and see it is going up and down like most other currency so I don't understand why it should be considered stable?

Tether was specifically designed to build the necessary bridge between fiat currencies and cryptocurrencies and offer stability, transparency and minimal transaction charges to users.

 

[reesek]

yes but then it failed to self regulate and now is massively undercollaterized
aka ponzi

 

[sonato]

If we have to strike a line, USD Coin is the better option and more trusted compared to Tether coin ?

Any other or is USD coin the winner.? I see that blockchain.com also add USD coin as a stable coin that may grant for trust.

 

[nomad999]

If we have to strike a line, USD Coin is the better option and more trusted compared to Tether coin ?

Any other or is USD coin the winner.? I see that blockchain.com also add USD coin as a stable coin that may grant for trust.

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, whether this is true or not at least they have all the technical requirements to allows the control and management a central bank would want.

Paxos I mentioned earlier is kind of in the same boat in regards to US laws and regulations, there is also Gemini dollar (GUSD) | Gemini

 

[reesek]

gemini dollar is the one that stopped redemptions a while back so i would not touch it and any USD, particularly

 

[AMD]

Exat 1 year later, Teather is still the no. 5 stable coin on coinmarketcap - no real negative reviews.

Do you trust it more today or still you better put your money into USDC ?

I have 50K euro to put into a stable coin and need to be sure?

 

[Martin Everson]

Do you trust it more today or still you better put your money into USDC ?

Don't go near USDT. I imagine it will be on radar of Feds.

Ignore me at your peril.

 

[blockchain4ever]

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.

 

[Martin Everson]

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

 

[nomad999]

Exat 1 year later, Teather is still the no. 5 stable coin on coinmarketcap - no real negative reviews.

Do you trust it more today or still you better put your money into USDC ?

I have 50K euro to put into a stable coin and need to be sure?

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 by a DAO with a decentralized governance. more risky obviously.