This is a question i had for a long time,ive seen majority of traders buy and trade crypto through USDT,they just blindly trust it ,as its purpose is that of a stable coin ,i.e. basically a crypto replacement for USD($).
But what if the company behind USDT decides to cheat its holders,is there any way we can find out before a complete disaster? (for e.g. they start minting more coins unnecessarily)
is there any safety mechanism or a red flag indicator before its too late?
Not safe.
You are much better off if you even just opt for DAI or USDC instead of USDT.
Tether has a track record of fractional reserves which is the exact opposite of decentralized cryptos mantra. It is essentially an interest free loan given to Tether without any protection/collateral for the people who are holding the USDT.