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?
The safety of USDT is probably one of the most discussed topics within the whole cryptospace and in my opinion the doubts regarding USDTether are definitely justified. Back in 2019 they changed the official wording from "every USDT is backed by a real dollar" to "we have enough reserves to back every USDT minted. So no one really can validate what kind of reserves they are talking about and if they even exist. I personally switched to USDC a while ago.