Editor’s note: This article from: a coin, coins (ID:acointoken) author: Jun, authorized reprint by Odaily daily planet.
USDT once again stand on the public opinion in the teeth of the storm.
Recently, there are rumors that USDT will crash. Yesterday, there are social media users found that Tether has been deleted before on the token completely by the support of the dollar. In this regard, joint capital founder Du were in the circle of friends to ask: “USDT a super bomb detonated what time?”
The FHRP is given a professional opinion, determine whether the USDT market crash and non capital reserves of Bitfinex. In general, most people mistake USDT, “mystery” has its reason, it is very difficult to replace USDT.
With the dollar peg?
The bear market malaise, currency circle in state of extreme nervousness. state, every rumor can be a fierce discussion, and even affect the currency price trend.
USDT company is one of the world’s largest Ted encryption currency trading platform established by Bitfinex (Tether Limited) issued a bank account in the Tate company users will be dollar reserves, Ted company issued the price equals $$vouchers, namely USDT. The Tate company claimed that 100% users can reserve assets, on the basis of 1:1 USDT will be back against the dollar.
However, USDT is not open, because the audit center and suspected of excess issue to manipulate the price of bitcoin and questioned, some people even regard the USDT as a Ponzi scheme.
Recently, there are rumors that USDT will crash. Yesterday, there are social media users found that Tether has been deleted before on the token completely by the support of the dollar. Tether because of its asset holdings transparency market has been questioned. Now, a new update Tether website shows (date unknown) dollar holdings will no longer cover all USDT supply.
The specific contents are as follows: “each one Tether are supported by our 100% reserves, including the traditional currency and cash equivalents, sometimes may also include other assets and accounts receivable and accounts receivable, these assets may be released from the tether to the third party loans, which may include affiliated entities (collectively referred to as” reserves “). In Reddit, users of other currencies against the US dollar outside support questioned, they think it will damage its legitimacy. User u/Toyake said: “I think we are back to the trusted third party, the implementation of the fractional reserve system to manage the market era.”
In this regard, joint capital founder Du were in the circle of friends to ask: “USDT a super bomb detonated what time?”
Du were in the comments also replied, “if USDT was detonated, bitcoin prices rose more than 500%”. In the last year, USDT had a one-day decline of 30%, BTC of USDT transactions on the jump in the. The coin Jun professional investor community, most professional investors responded that USDT will collapse.
To determine whether the market crash
Netizen FHRP micro-blog said, “factors determine whether USDT will crash already is the market, not whether Bitfinex has full reserve and is accepted. When a currency has a certain market liquidity, can do not need any reserve, and completely determined by supply and demand price.
Bitfinex is currently the capital channel is had a lot of problems, so the large withdrawals to users of the title, but as long as the market is not panic, this is not a problem. But even if the panic occurred, Bitfinex also took the opportunity to recover cheap USDT to maintain a certain degree of price stability so that it does not collapse, the collapse of the course, there is always the possibility, but not so easy to happen. That led to LR (network currency) the key causes of the crash is the center of the books were seized, not frozen funds.
As for the Bitfinex want to drive down the currency to maintain the USDT price that is completely nonsense. When the Bank of Taiwan Bitfinex channel problems, save Bitfinex is the BTC bull market, what financial problems in a large number of prepaid users before smoothly done or easily solved.”
For this problem, stable currency professional researchers, MakerDAO economic researcher and Chinese district director Pan Chao told the coin Jun, he agreed to decide whether the market crash and non USDT capital reserves of Bitfinex. In addition, he also believes that the FHRP analysis is reasonable.
Opacity is intentional
Pan Chao believes that the money market is stable money market (Money market), and other encryption currency closer to the stock market (Stock market). The stock market is to provide risk sharing, and money market is to provide liquidity. One important point, money market liquidity is naturally opaque, opaque but can in many cases provide better.
In fact, the opacity of the Tate company is actually intentional. Only aggregate information is more conducive to the mobility of USDT. Reserve assets is a vague words, I do not know the truth behind the USDT assets represent what, but other people do not know. On the market “ignorance” reached equilibrium, we are not sure which behind the USDT assets, but still use USDT.
USDT if there is no risk? Of course not, Pan Chao believes that the circulation USDT people’s “ignorance” reached equilibrium based on but the opacity of the risk to the end. Some users and exchange USDT as a last resort to use the “bomb”. If Ted cooperative bank defaults, or Ted’s reserve assets plummeted, or the government banned the Ted company, the black swan event will break the current balance, and lead to the Domino effect, the money market will face encryption in economic crisis and even collapse.
In general, most people mistake USDT, “mystery” has its reason, it is very difficult to replace USDT.