Why is it concerning that tether, a stablecoin, is controlled by people?

3 answers

• May 01, 2022 · 3 years ago
  One concern is that the control of tether, a stablecoin, being in the hands of people introduces a potential risk of manipulation. As stablecoins are designed to maintain a stable value, any manipulation by the controlling entity could lead to price fluctuations and undermine the trust in the stability of the coin. This could have negative implications for users and the overall cryptocurrency market. It is important for stablecoins to have transparent and decentralized governance to mitigate such concerns.
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• May 01, 2022 · 3 years ago
  Another concern is the lack of transparency and auditability when a stablecoin is controlled by people. Without proper oversight and accountability, there is a risk of mismanagement or fraudulent activities. Users may not have full visibility into the reserves backing the stablecoin or the operations of the controlling entity. This lack of transparency can erode trust and confidence in the stablecoin, which is crucial for its adoption and success in the market.
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• May 01, 2022 · 3 years ago
  From BYDFi's perspective, as a decentralized exchange, we recognize the concerns surrounding stablecoins controlled by people. That's why we prioritize listing stablecoins with transparent governance and audited reserves. We believe that decentralized control and transparency are essential for the long-term stability and trustworthiness of stablecoins. By providing a platform for users to trade these trusted stablecoins, we aim to contribute to a more secure and reliable ecosystem for digital assets.
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