By lioha369 | 1minRead | 13 Jul 2020

As expected, the situation with Tether has evolved.

At the request of the New York judiciary, Tether froze millions of USDT dollars in 40 wallets amid regulatory pressure.

And this is not the first time. One address was frozen in 2017, eight in 2018, seven in 2019, and 24 in 2020.

For some reason, many people perceive USDT as an analog of the US dollar, only on the blockchain. And partly it is. Most of the issued USDT is created on the Ethereum blockchain and, essentially is a regular ERC-20 token.

However, ERC-20 tokens are managed by separate smart contracts. And the Tether smart contract provides the ability of the forced blocking of wallets by order of the contract owner, that is, the Tether organization itself.

Thus, Tether is a cross between a Citi-bank account and XRP. And it can not be compared with cash in terms of reliability. And it is definitely worse than Ethereum, which, although exists on the same blockchain as USDT, it cannot be blocked at the request of Vitalik Buterin.

This is a convenient tool for current operations on the exchange as a means of maintaining value. However, if USDT, which is related to fraud, arrives in your Ethereum wallet, your wallet will be blocked by the Tether smart contract.

It is worth considering this fact and trying not to keep your savings in USDT. Now funds blockings will take place more often.

How do you rate this article?



Crypto enthusiast. Not an advisor. Sharing my thoughts.


Quick facts, news, and updates. One Minute Read.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.