Quote from: ashslm on February 09, 2023, 07:46:27 AM

I'm in crypo world since 2021 only and since then I've noticed a lot of folks talking about Tether as being a potentional scam that may crash the markets one day and I've watched videos from crypto detectives/scam busters such as Coffeezilla and he makes some pretty fair points about Tether being the cryptos biggest scam.

I wanna personally know from people who have been in crypto for little longer than I have and maybe know a few things more or could share their personal view on Tether.

My side question to this would also be: Which type of stablecoin do You find the most credible in the Crypto space?

Thanks in advance for more experienced folks for sharing their insight!

I am in Cryptoworld since 2017, there is no sure about the most credible stablecoin except USDT since there is some stablecoin that crashes, for example, Terra(LUNA).

"LUNA was meant to buffer TerraUSD against market volatility, but it succumbed to extreme selling over recent days. Its trading price was knocked down to $0.03, last week. That’s down 99.9% since May 6.

“It was inevitable Terra crashed as the reliance on using other cryptocurrencies as collateral as well as the minting/burning mechanism of LUNA for Terra was not sufficient to survive any serious market volatility,” says Adam Carlton, CEO of crypto wallet PinkPanda says.

In a bid to save TerraUSD, the Luna Foundation Guard (LFG), the nonprofit that supports the Terra network, depleted its entire reserve of $3 billion in Bitcoin. And it was the fund’s dumping of its Bitcoin reserves in a last-ditch effort to save UST that probably helped contribute to Bitcoin’s volatility."

Source: https://www.forbes.com/advisor/in/investing/cryptocurrency/crypto-market-crash/

In stablecoins, there have generally been successful in maintaining they're pegged, there have been isolated incidents where specific stablecoins faced challenges or failed to maintain their intended stability. These instances can be attributed to various factors, including insufficient collateralization, mismanagement, lack of transparency, regulatory issues, or market shocks. However, it is worth noting that stablecoins such as Tether (USDT), USD Coin (USDC), and DAI have been operating relatively stably and have gained significant traction in the crypto market. These stablecoins are widely used for various purposes, including remittances, trading, and as a store of value. They have established themselves as credible options within the cryptocurrency ecosystem.

It's crucial for users and investors to conduct thorough research and due diligence before engaging with any stablecoin to assess its credibility, track record, and the mechanisms in place to maintain stability. Market volatility and risks are inherent to the cryptocurrency space, and careful consideration is necessary when choosing stablecoins or any other digital assets.

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