agreed - better to rip the band-aid right off instead of slowly peeling away at it

alternatively, they could simply not redeem Tether for USD (which they don't), and then you'd have to hope that any exchanged with USD x USDT trading pairs has enough demand/liquidity to keep the peg.

I partially disagree - the fact that crypto is unregulated isn't the main issue. Even if regulations existed saying that 1:1 ratio in cash needs to be held, Tether would simply operate in a jurisdiction

@brookeloving thanks for the feedback :)

very good point! i think these are infinitely better alternatives to what Tether is trying to do

naw - just another bump in the road

well said. the need is largely unmet, and Tether is capitalizing on that... but in the most shady way possible. TrueUSD seems like a much more promising approach, with a legit team behind it. we'll see

i don't, and wouldn't take the chance. worst case scenario - you'll never see your coins again

it should certainly help inform how they operate and the level of transparency they should aim for.. but shouldn't necessarily hurt them. at worst, it makes them appear to be more legitimate alternatives

and, selling USDT for USD on Kraken is only possible to the extent that people are willing to pay $1 USD for $1 USDT ... which is a sweeping, unrealistic assumption (especially if Tether themselves won't

there's no bank run bc you can't cash out to USD except on Kraken and in order to do that on Kraken, you must comply with stringent AML/KYC requirements - which is what people sought to avoid by using

it would be a bad thing because it implies that Tether can issue new tokens out of thin air, essentially creating free money to acquire crypto with - could have the impact of artificially increasing the

great quote, and eerily relevant :(

there is nobody to hold them accountable, so what do they have to lose by making stuff up?

from what i understand, these pegged assets are decentralized to the extent that no company has claimed to hold reserves to backup the value. the market-based pegging mechanisms are a bit unclear to me,

they certainly could! the fact that they still haven't and likely won't is problematic

it's easy to get away with stuff like this in the crypto space because there are no required regulations to follow. now, I don't think regulations will solve anything, as there are always ways to skirt

good question - I don't know enough about it, but if it is provably backed by something tangible, it could serve a purpose

glad that you enjoyed it - I'm always looking to shed light on other ambiguous/jumbled topics, so feel free to share anything you'd like to learn more about in the future

it wasn't really an audit though