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?
There's none. They are minting actually coins almost weeks actually and there no question about it. If ever Tether USDT becomes a disaster, then almost all of crypto market will collapse but I guess global community have to do something about it. We need a stablecoin which is backed by assets except USD. Like a golden standard made by The Standard protocol. You can generate an algorithmic stable coin by locking up your BTC, ETH and other coins that is allowed by The Standard dao. This is the solution of this USDT drama.