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The more I read about USDT, more it looks like money laundering. These guys take your USD and issue you equivalent tokens you can trade with. As long as a lot o
by dingo_bat 9y ago
The more I read about USDT, more it looks like money laundering. These guys take your USD and issue you equivalent tokens you can trade with. As long as a lot of people don't try to encash their tokens everything will be fine.
Also note that if holding USD is the only problem this is supposed to solve, why not just hold USD? Except if you want to bypass your local laws. I buy USDT in country A. Trade BTC for it, then sell BTC for USD in another exchange in country B. This is the only utility and this itself seems illegal.
- dawhizkid 9y agoMost cryptoexchanges don't actually support cryto<>fiat transfers, so USDT offers a substitute in situations where you don't want to "cash out" (per se) but want to hold some of your balance in something that is supposed to be equivalent to fiat.
- dingo_bat 9y agoMakes sense, so instead of holding BTC which can go +-30% in a few hours, you hold in USDT which is pegged to the dollar.
- jnbiche 9y ago> These guys take your USD and issue you equivalent tokens you can trade with. Nope. That's how it was until about a year ago, when all their banking accounts were closed (probably due to the issue you describe). For the past year, they just randomly printed millions of "US-Backed" tokens, and people trade them as if they were actually backed by dollars, even though they are not the result (since a year ago) of any USD deposits, and even though you can exchange them for actual USD. It's bizarre.
- jnbiche 9y ago> and even though you can exchange them for actual USD. That was a typo, I should have written, "and even though you can't exchange them for actual USD."