Unpopular Ideas Ep.2 - Slow but Steady Delists of USDT Loading...

Unpopular Ideas Ep.2 - Slow but Steady Delists of USDT Loading...

By idiosyncratic | Idiosyncratic Crypto | 29 Jul 2021


Tether (USDT) has been the leading stable coin in crypto ecosystem. Since the birth of the concept of stable coin, immense discussions took place among people over the necessity or credibility of stable coins.

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It did not take too long to acknowledge the necessity of stable coins (as the use of fiat currencies both let policy makers of distinctive countries ban / unban deposits and withdrawals and the fiat gates can be quite expensive.

When it comes to the aspect of credibility, USDT lost its credibility in the eyes of many crypto enthusiasts. USDT has always been a fact that is vulnerable to be investigated, penalized and it has always had the potential to affect the market negatively.

Solutions followed the fade of credibility

Now we have both centralized (BUSD, USDC, TUSD, etc.) and decentralized counterparties (DAI, USDN etc.) that set us free from the monopoly of Tether. As these stable coins gain reputation, the platforms chose to provide advantages for those who chooses their own stable coins. It does make sense!

Now, the shining star USDC (thanks to Circle company) and the other options are getting more accessible and popular as the time passes.

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Unpopular Idea whispers: USDT will be de-lis-ted! Not suddenly; but eventually.

Soft and Reasonable Delist Mania -> Increased fees, disadvantages for USDT users

It's the most likely way that the exchanges are going to follow IMO. By enabling users to get additional features, discounts or any kind of privilege, the exchanges will want to decrease the number of USDT pairs gradually.

Most probably, the low volume will be the reason put forward by exchanges to eliminate the realm of Tether. As they will have a narrative, the market will not react to this situation (IF there will be any reaction 😅)

Tough but Fun way: Like Ripple being Delisted

I do not think it will happen but we may see the delist mania in a more serious way that may turn the market into red for a long time. Remember the delist of Ripple when there were issues with SEC, this is also possible for Tether to be delisted by top exchanges within a short term.

It does not sound logical for me as it will also affect the profit of exchanges in a negative way. Thus, the first option is more reasonable. I do not even want to imagine if this happens 😑


My Point of View

I'm fed up with the negative news about Tether. When we go back 3 years ago, we had to rely on the company but it is no longer the case. In my eyes, the USDT has already lost its credibility. Besides, USDC is willing to outperform it as soon as possible.

Yeah, there will be delist of Tether pairs in crypto exchanges. I support this idea by heart. Exchanges are bargaining with governments to be able to serve in all countries in the world. The last thing they would like to have is trouble / trouble-makers and USDT is likely to be sacrificed.

Will it happen tomorrow? No way,
The other day? Not likely,
Gradually in the long run? ABSOLUTELY 💁‍♂️

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idiosyncratic
idiosyncratic

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