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(ID: acointoken), Author: Cointoken, reproduced by Odaily with authorization.
USDT once again stands on the cusp of public opinion.
Netizen fhrp gave a professional opinion, the market decides whether USDT will crash or not, not Bitfinex’s capital reserve status. In general, most people misunderstand USDT, and its "mystery" exists for a reason, and it is very difficult to replace USDT.
Depegging from the dollar? Under the sluggish bear market, the currency circle has fallen into a state of panic. Every rumor can set off intense discussions and even affect the trend of currency prices. USDT is issued by Tether Limited, established by Bitfinex, one of the world's largest cryptocurrency trading platforms. Users reserve U.S. dollars in Tether's bank account, and Tether issues a U.S. dollar certificate with a price equal to one dollar, namely USDT. Ted claims 100% asset reserves, and users can exchange USDT back to US dollars on its platform at a 1:1 ratio. But for a long time, USDT has been questioned due to its non-disclosure of audits, centralization, and suspected over-issue to manipulate the price of Bitcoin. Some people even regard USDT as a Ponzi scheme. Recently, there have been rumors that USDT is about to collapse. Yesterday, social media users discovered that Tether had deleted its previous statement that the token was fully backed by U.S. dollars. Tether has been questioned by the market because of the transparency of its assets. Now, a new update on Tether’s website reveals (date unknown) that USD holdings no longer cover the entire USDT supply. The specific content is: "Each Tether is backed by 100% of our reserves, including traditional currency and cash equivalents, and may sometimes include other assets and accounts receivable. These assets and accounts receivable may come from tether to Loans issued by third parties, which may include affiliated entities (collectively referred to as "reserves"). On Reddit, support for currencies other than the U.S. dollar has been questioned, which they argue would compromise its legitimacy. User u/Toyake He concluded: "I think we're back to the days of trusting third parties and fractional reserves to manage markets. " Du Jun also replied in the comments, "If USDT is detonated, the price of Bitcoin will increase by more than 500%." Last year, USDT experienced a one-day drop of 30%, and the BTC-USDT trading pair skyrocketed. In the professional investor community where Mr. Coin is located, the reaction of most professional investors is that they do not think that USDT will collapse. The market decides if it crashes Netizen fhrp posted on Weibo, "The factor that determines whether USDT will collapse has already been the market, not whether Bitfinex has sufficient reserves and whether it has accepted it. When a currency has a certain degree of market liquidity, it is not necessary to No reserves are required, and prices are determined entirely by supply and demand. Bitfinex's current funding channel has encountered a big problem, so that users who withdraw large amounts of money have been banned, but as long as the market does not panic sell, this is not a problem. And even if a panic occurs, Bitfinex can take the opportunity to recover USDT at a low price to maintain a certain degree of price stability so that it does not crash. Of course, the possibility of a crash always exists, but it does not happen so easily. The key reason for the collapse of LR (Internet Currency USD) was actually the seizure of centralized ledgers, not the freezing of funds. Regarding this issue, Pan Chao, a professional stablecoin researcher, MakerDAO economic researcher and head of China, told Coin Jun that he agrees with the market to determine whether USDT crashes rather than Bitfinex’s capital reserve status. In addition, he also thinks that netizen fhrp's analysis makes sense. Opacity is intentional Pan Chao believes that the stablecoin market is a money market, while other cryptocurrencies are closer to a stock market. The stock market is to provide risk sharing, while the currency market is to provide liquidity. The important point is that the currency market is inherently opaque, and opacity can provide better liquidity in many cases. In fact, this opacity at TED is actually intentional. Only providing aggregated information is more conducive to the liquidity of USDT. Asset reserve is a vague term. I don't know what the real assets behind USDT represent, but neither do others. The "symmetric ignorance" in the market has reached an equilibrium. Everyone is not clear about the asset composition behind USDT, but USDT is still used. Is USDT risk-free? Of course not, Pan Chao believes that the circulation of USDT is based on the equilibrium achieved by people's "symmetric ignorance", but this kind of opacity pushes the risk to the end. Users and some exchanges regard USDT as an "indefinite time bomb" of last resort. If the bank that Ted cooperates with defaults, or Ted’s reserve assets plummet, or the government bans Ted, this black swan event will break the current equilibrium and trigger a domino effect, and the entire cryptocurrency market will face Economic crisis or even collapse.secondary title
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