Re:Tether is “too big to fail” – the entire crypto industry ...
by gillesjacobs on Sunday December 13, 2020 @06:35PM
(#25411606)
The author might be a zealous sceptic of crypto in general and I lean more on the crypto-optimist side but Tether well-earned the scepticism. It honestly worries me to no end that people keep cashing out in USDT, because it is non-auditted, no proof of sufficient backing or collateralisation.
The last audit Tether had was in 2018 I believe, and then it was found they are only 70% backed by equivalent fiat [1]. God knows how much unbacked USDT they printed in between then and now. Other stablecoins are much safer: USDC is more than 100% backed by fiat USD [2] and is audited by several firms at set intervals. DAI v2.0 (MCD) is also over collateralized by a large margin. I personally prefer DAI for my stablecoin needs.
Tether has also been rife with scandal [3]. I hate to see so many DeFi projects relying on USDT. People need to start to exclude Tether because they resist transparency and accountability, completely antithetical to the cryptocurrency ethos.
The last audit Tether had was in 2018 I believe, and then it was found they are only 70% backed by equivalent fiat [1]. God knows how much unbacked USDT they printed in between then and now. Other stablecoins are much safer: USDC is more than 100% backed by fiat USD [2] and is audited by several firms at set intervals. DAI v2.0 (MCD) is also over collateralized by a large margin. I personally prefer DAI for my stablecoin needs.
Tether has also been rife with scandal [3]. I hate to see so many DeFi projects relying on USDT. People need to start to exclude Tether because they resist transparency and accountability, completely antithetical to the cryptocurrency ethos.
[1] https://www.bloomberg.com/news/articles/2019-04-30/tether-sa...
[2] https://news.bitcoin.com/tethers-stablecoin-dominance-drops-...
[3] https://cryptopotato.com/the-downfall-of-a-stablecoin-tether...