Please let this turn into a run on the bank to kill USDT once and for all. This is an emergency alert! Tether has broken the peg and is crashing. Trust in Tether is fading and huge upspikes in the market are occurring as Tether holders retreat to more decentralized options.
It's moments like this that will prove that stable coins backed in a bank are not to be trusted. This is why Maker and Dai will reign supreme in the space. Dai has already reached the top 100 and Maker is nearing top 20.
Dai and Maker currently have zero exposure to mainstream exchanges. Being listed on a few of them will increase their value by a ton. This is especially true when considering a stable coin versus a store of value. The entire point of the stable coin is to be traded to avoid losses; a function that Dai could provide much easier with more exposure.
More than likely Tether will stabilize very soon, but this is still very big news. Why can't a stable coin that's supposed to be backed by 100% dollars in a bank provide the liquidity to maintain the peg? It's not like the market is especially volatile right now. What's the excuse? What's going to happen during a huge bull run when everyone's going to want to cash out their stable coins? Will Tether have the funds to buy back their own coins and burn them to keep the value up? Only time will tell.
Even ignoring the possibility of a bull run, Tether is tied to Bitfinex. If Bitfinex get's attacked or crashes Tether will also lose it's peg. This is yet another centralization risk.
Even ignoring Dai, lots of competition is entering the space. TrueUSD, Cloud, Gemini, and others will all start leeching market cap away from Tether.
If they are running a fractional reserve like many speculate, it's only a matter of time before they become insolvent.
Return from Tether is crashing, being dumped into bitcoin and friends to edicted's Web3 Blog
