Quote from: bitmover on May 27, 2018, 11:27:12 AM

Quote from: DekDavis on May 26, 2018, 09:45:54 PM

I use Binance as my exchange and was wondering if USDT was a good place to hold funds between paying and selling. Thanks!

Basically, Tether is a company, and when you buy tether, you are making a loan to that company, who promises to pay you back 1 USD for each tether you own.

It's not safe to hold it and hold money in exchanges that use tether is not safe either

I recently made a post about it, which I am going to quote here.

Quote from: bitmover on March 26, 2018, 06:31:28 PM

Tether is a company.
When you buy tether, you are making a loan to that company, who promises to pay you back 1 USD for each tether you own. It's something like a Debt Security.
You basically become a creditor of that company.

You are making a loan to Tether with zero interest rate. That's a pretty good deal for Tether. So you are borrowing money with 0% interest rate, assuming all the risks, as Tether may go the bankrupt and do not pay you back. Even so, there are a few advantages of buying tether:

Taxes- You can sell your cryptos for tether and do not pay taxes (yet). This way you can postpone your taxes in many countries(according to your country legislation)
Convenience- You can easily move your USDT around exchanges across the globe without any burocracy and faster than you would move USD.

This cryptocurrency is closely connected to Bitfinex, as they share the same CEO. Bitfinex is one of the biggest exchange in the world. As they make a lot of money I believe they may have their Tether backed up, but I am looking forward to see the results of any real audit.

Recently there have been a lot of FUD involving Tether (USDT), but I have not seen proper warns about the risks associate with Tether Exchanges, who are the Tether's Biggest Creditors (Tether Rich List).

If you take fast glance at Tether Rich List, you will see who are the biggest creditors:

Balance(USDT)	Remark
335,068,326	Binance
293,361,358	Bittrex
230,960,153	Tether Treasury
226,752,797	Huobi
159,111,273	Huobi
153,761,528	Binance
148,519,471	OKEx
125,427,504	Bitfinex
220,000,000	Poloniex

As we can see, Binance, Bittrex and Huobi are the biggests creditors of Tether. And Binance is the biggest of them all.
I highly recommend you do not leave your savings on those exchanges, as they are like double-risk. You have the risk associate with the exchange, and the risk associate with Tether.

If tether does not pays his creditors, will Binance and those others survive?

Edit: Added Poloniex to the list.

?=
And do you think Alchemint- very recent ICO (SDT) is similar as USDT?