USDT Reddit Mentions | ChartExchange

#Tether Pro-Arguments
Below is a Tether pro-argument written by Blendzi0r.
> *First published on: \[*[30.09.2021](https://np.reddit.com/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/hewpzqt/)*\]*
>
> *Last edited on: 19.09.2022*
>
> # Intro
>
> Tether (USDT) is a digital dollar – a stablecoin pegged to US dollar. Stablecoins are a type of cryptocurrency with a value fixed to other assets (usually assets outside of the cryptocurrency space, e.g. fiat currencies, precious metals, etc.). Their main purposes are: 1) help investors escape the volatility of the cryptocurrency market and 2) allow investors to buy cryptocurrencies on exchanges that do not offer fiat deposits. USDT is currently the largest stablecoin. \[1\], \[2\], \[3\]
>
> # Pros
>
> **It’s the most popular and oldest stablecoin**
>
> Tether was launched in 2014 as Realcoin and renamed to Tether the same year \[1\]. It’s the first successful stablecoin. For many years, it had completely dominated the stablecoins market and despite the recent growth of other stablecoins, mainly USDC, Tether is still the biggest and most popular stablecoin. As of September 2022, its market cap shrinked against USDC's market cap in recent months, but its volume still tends to be much higher (according to coinmarketcap, on 19.09.2022 it was 12x(!) higher). In fact, USDT’s trading volume is unmatched by any other cryptocurrency. \[1\]
>
> It is also worth pointing out that more than 80% of stablecoins launched in 2015 are now gone and USDT is still here, despite its bad press. \[4\]
>
> **It has most trading pairs**
>
> The market cap and volume speak for themselves – Tether is the most popular stablecoin. There are very few exchanges that don’t accept USDT and all major coins have trading pairs with USDT. Even Coinbase, which is responsible for Tether’s rival stablecoin – USDC, lists Tether on its exchange (since May 2021). \[5\]
>
> It is also backed by several international currencies and, therefore, allows people in different countries purchase coins that they otherwise wouldn’t be able to get.
>
> **It was declared dead many times but, just like Bitcoin, it's alive and kicking**
>
> There are many controversies around Tether. Perhaps the most concerning one is whether USDT has its reserves fully backed. Many critics believe that Tether isn’t fully backed and if many investors were to redeem tethers at the same time, there would be no liquidity \[6\]. Situations when people redeem tokens en masse usually should happen during market crashes. In the last 4 years we had three significant market crashes – in 2018, in March 2020 and in May 2021. USDT survived all of them.
>
> It has also survived losing almost 25% of its market cap in a short time - from May to July of this year.
>
> **The latest breakdowns of the reserves is a step in the right direction**
>
> Tether had been criticized for lack of transparency (and rightly so) for many years. In May 2021, for the first time since 2014, Tether finally gave us an insight into their reserves. The first report was rather disappointing as it turned out that barely 3% of the reserves are made-up by cash. Moreover, 65% of the reserves were made-up by commercial paper and there were no details about the type of the commercial paper. \[7\]
>
> However, the reports from August and December 2021 looked much better \[8\]: cash and cash equivalents made up more than 80% of the reserves, more than 10% of which were cash and bank deposits, +/- 30% were treasure bills (they are considered very safe assets) and they provided more details – the reports included information about the rating and breakdown of maturity of the commercial paper and certificates of deposit. The reports were on pair with those of USDC.
>
> **USDT is centralized. But is it so bad in the case of a stablecoin?**
>
> Decentralization is essential for cryptocurrency. But so is replacing fiat. So is decentralization that important in the case of a stablecoin?
>
> The fact that USDT is centralized also allowed it to do good things on many occasions. It returned USDT sent to wrong addresses and cooperated with law enforcement officials and blocked/froze addresses that used USDT for illegal activities. \[9\], \[10\]
>
> ^(Sources:)
>
> ^(\[01\]) [^(https://en.wikipedia.org/wiki/Tether/(cryptocurrency)](https://en.wikipedia.org/wiki/Tether/(cryptocurrency))
>
> ^(\[02\]) [^(https://tether.to/wp-content/uploads/2016/06/TetherWhitePaper.pdf)](https://tether.to/wp-content/uploads/2016/06/TetherWhitePaper.pdf)
>
> ^(\[03\]) [^(https://en.wikipedia.org/wiki/Stablecoin)](https://en.wikipedia.org/wiki/Stablecoin)
>
> ^(\[04\])[^(https://papers.ssrn.com/sol3/papers.cfm?abstract\\\\id=3835219)](https://papers.ssrn.com/sol3/papers.cfm?abstract\id=3835219)
>
> ^(\[05\]) [^(https://blog.coinbase.com/tether-usdt-is-now-available-on-coinbase-214f075deaa2)](https://blog.coinbase.com/tether-usdt-is-now-available-on-coinbase-214f075deaa2)
>
> ^(\[06\]) [^(https://www.theverge.com/22620464/tether-backing-cryptocurrency-stablecoin)](https://www.theverge.com/22620464/tether-backing-cryptocurrency-stablecoin)
>
> ^(\[07\]) [^(https://tether.to/wp-content/uploads/2021/05/tether-march-31-2021-reserves-breakdown.pdf)](https://tether.to/wp-content/uploads/2021/05/tether-march-31-2021-reserves-breakdown.pdf)
>
> ^(\[08\]) [^(https://tether.to/en/transparency/#reports)](https://tether.to/en/transparency/#reports)
>
> ^(\[09\]) [^(https://decrypt.co/41920/tether-uses-centralized-power-refund-million-usdt)](https://decrypt.co/41920/tether-uses-centralized-power-refund-million-usdt)
>
> ^(\[10\]) [^(https://cryptopotato.com/tether-freezes-1-7m-in-usdt-stolen-in-yearn-finance-exploit/)](https://cryptopotato.com/tether-freezes-1-7m-in-usdt-stolen-in-yearn-finance-exploit/)
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.dark-mode .TYlDcT{ color: white; background-color: #333333; border: 2px solid white; }.light-mode .TYlDcT{ color: #333333; background-color: white; border: 2px solid #333333; }USDTUSDTether USD / United States dollarcrypto Composite

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Tether USD / United States dollar
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