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I hope you're right. I think the major tipping point would be a major exchange deciding to no longer accept it.
by impostervt 5y ago
I hope you're right. I think the major tipping point would be a major exchange deciding to no longer accept it.
- bobthepanda 5y agoyou would need some news that makes USDT simultaneously radioactive to everyone holding it at the same time. runs fundamentally all work the same way, whether its Greek bonds, deposits in a bank, etc.
- arcticbull 5y agoWhat I don't think most folks realize is that USDT is heavily centralized. They have an extensive 'blacklist' of tokens they've frozen, and they add to it regularly. Far more so, I believe, than any of the other stablecoins. They were the first (only?) to freeze tokens coming out of the Poly hack. [1] I believe they even forced a change to Omni to support blacklisting after they were 'hacked' [2] a few years ago (scare quotes because it was never investigated or IMO resolved). [3] It's highly antithetical to the Satoshi white paper. If Tether gets shut down and their leadership banged up, I strongly suspect custody of the network will fall with the DoJ and they could, at their discretion, freeze all tokens pending full AML/KYC and source-of-funds of holders. Whether this is a credible fear or not, the ensuing fear and chaos would almost certainly break the $1 peg, especially once their exchange friends stop supporting the peg and turn states witness. [1] https://www.coindesk.com/tech/2021/08/11/returned-funds-blacklisted-tokens-raise-more-questions-than-answers-in-defis-biggest-hack/ https://www.coindesk.com/tech/2021/08/11/returned-funds-blac... [2] https://www.coindesk.com/markets/2017/11/21/tether-claims-30-million-in-us-dollar-token-stolen/ https://www.coindesk.com/markets/2017/11/21/tether-claims-30... [3] https://github.com/OmniLayer/omnicore/releases/tag/v0.3.0 https://github.com/OmniLayer/omnicore/releases/tag/v0.3.0