BlockTrades adds support for USD Tether coins (USDT_OMNI and USDT_ERC20)


You can now purchase crypto on BlockTrades using the two most popular USD Tether coins, USDT_OMNI and USDT_ERC20. USDT_OMNI is an omni-based coin that operates on top of the Bitcoin network. USDT_ERC20 is an ethereum-based token (an ERC-20 token).

What is USD Tether (USDT)?

USD Tether is a stable-coin whose value is tied to the US dollar via backing by the company Tether Limited. The CEO of Tether Ltd is also the CEO of BitFinex and BitFinex is one of the main exchanges where USDT is traded, so you will often find articles that reference BitFinex as well as Tether Ltd, when USDT is discussed.

USDT controversies, Tether Ltd, and BitFinex

Over the years, there have been many controversies surrounding Tether. Generally these controversies tend to revolved around the claim that the amount of USDT in circulation is higher than the amount of liquid assets that Tether Ltd has to back them, and an associated claim that this unbacked USDT has been used to manipulate the cryptocurrency market to inflate the price of bitcoin.

The most notable such claim is a suit filed by the New York Attorney General’s office. However, it is worth pointing out that in the NY AG’s suit, it appears that the amount they are claiming isn’t backed is a result of those funds having been frozen by various governments (most notably, the US government). So, as far as I can understand the case (bear in mind, I’m just reading public articles about it), the NYAG filed a suit against Tether for not fully backing USDT coins, and at least one of the reasons the coins are not fully backed is because some of the funds are temporarily frozen by the US government itself. To me, that’s just a bit strange. It’s also not clear to me if those funds are just frozen or have been permanently seized, which leaves one to wonder if just because funds are frozen, they can no longer be considered to back an obligation.

There’s even a relatively recent article on coindesk now about a new private class-action lawsuit being launched against Tether and Bitfinex: https://cointelegraph.com/news/how-severe-is-roche-freedmans-lawsuit-against-tether-and-bitfinex Yes, shocking news, there are plenty of lawyers out there that are happy to file class action lawsuits to enrich their own pockets, especially when they have little to lose except their time. Uh wait, I mean to help the “little guy” by virtuously contributing their own valuable time for a small chance of a future return on their invested time (now this paragraph is hopefully “lawyer approved”).

Anyways, the takeaway from the above is that there certainly is some risk in long term holding of USDT as its value is maintained by a reliance on the ability of Tether Ltd to back the coins with fiat currency and you should probably manage your holdings accordingly. Nonetheless, I’ve found it can be useful as a means of holding coins with a stable USD value over the short term, especially if you’re dealing with centralized exchanges, so we’ve decided to add it to our list of supported coins, despite the controversies associated with Tether Ltd.

A small note on transaction fees for USDT coins

USD Tether can be transferred along multiple blockchains. That’s why there are multiple coin types: USDT_Omni (these coins are transmitted on the bitcoin blockchain), USDT_ERC20 (these coins are transmitted on the ethereum blockchain, and even USDT_TRON (transmitted on the Tron blockchain). The coins on all three of these blockchains are backed by the same value, so they can be considered the same for valuation purposes.

But it is useful to note that the transaction fees vary a lot across these networks. For example, a USDT_OMNI transaction costs about 2x a regular bitcoin transaction (it is 2x because there is additional information required by the OMNI coin protocol that needs to be included in the bitcoin transaction), so it normally costs significantly more to send USDT_OMNI than USDT_ERC20.


Comments 28


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16.10.2019 20:41
1

Nonetheless, I’ve found it can be useful as a means of holding coins with a stable USD value over the short term, especially if you’re dealing with centralized exchanges, so we’ve decided to add it to our list of supported coins, despite the controversies associated with Tether Ltd.

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This is Wonderful.😊 great move

Posted using Partiko Android

16.10.2019 21:05
0

I want to buy STEEM with CC or Paypal. Right now to buy STEEM, I have to buy some shitcoin on coinbase then transfer it to another exchange, sell it off, buy STEEM. So complicated and expensive

16.10.2019 21:13
1

We're working on simplifying the process of buying crypto with fiat currencies (e.g. USD and Euros). Getting thru all the regulatory hurdles just takes a lot of time.

16.10.2019 21:25
5

I have talked with simplex about fiat exchange options recently. They have bit higher fees and volume requirements. In case of eSteem those volumes are quite high at this moment to consider partnership but I think you guys have enough volume to integrate with them.

17.10.2019 09:37
1

This is actually a good suggestion but given that Simplex take the risk of holding and exchanging base on spot price, it may not be the right move for Steem at this moment. Steem volume and liquidity isn't strong enough to withstand any sort of block selling.

17.10.2019 13:07
0

With bitcoin or Ethereum, you can buy steem easily using blocktrades. 😌 It's fast.

Instead of buying shitcoins and send them to another exchange. Just buy bitcoin or ETH. Then use @blocktrades to exchange it to steem here.💁

16.10.2019 21:26
0

That's what I'm talking about. Bitcoin and Ethereum is shitcoin.

16.10.2019 21:34
1

Lol. @mmmmkkkk311😂😂😂.

This is the funniest thing I've read this week😂

16.10.2019 21:46
0

Although I get it... The transaction fees that goes when using Btc or other "shitcoins" following that route 😂 is still something.

It'll be wonderful for one to be able to use PayPal or CC to buy STEEM directly.

16.10.2019 21:51
1

Wow! That's a big plus to blocktrades market, keep discovering! @blocktrades

Posted using Partiko Android

16.10.2019 22:37
0

Hi! Is there something wrong with your site?! I could not buy or sell Steem on Blocktrades for a few days now. But I could power up though!

Thanks for your kind attention.
Have a nice day!

17.10.2019 04:29
0

Hi, our site is working ok. You can see here where customers are currently buying and selling Steem from us:
https://steemitwallet.com/@blocktrades/transfers

What browser are you using? Also, you may want to try "F5" refresh in case you have an old version of our web pages cached in your browser.

17.10.2019 05:47
2

Thank you very much for your reply! I could use your site after I tried to access it via other drop menu!

Yes, I need to refresh my browser too!
Cheers.

17.10.2019 06:38
0

Relay shocking & bad news for USDT ,ERC20 &TRON coins holder .

17.10.2019 04:50
0

Excellent.

Posted using Partiko Android

17.10.2019 08:04
1

Congratulations on the new intergration!

17.10.2019 08:56
0

nice info...

17.10.2019 12:42
1

They have bit higher fees and volume requirements.

17.10.2019 12:48
1

Nice news ! When list dai ?!

Posted using Partiko iOS

17.10.2019 16:42
1

Thank you very much for the support of your vote in one of my publications hehehe greetings

17.10.2019 20:58
0

Thank you for sharing it. I enjoy your content.

18.10.2019 01:28
0

@blocktrades I would hoping you would do something like this. But truthfully I don't understand why you would pick USDT rather than launch a BlockTrades stable token?

Why not Blocktrades SMT aka Blockdollars? Please take my idea and collateralize it with your choice of a stable basket of assets.

18.10.2019 04:48
1

Yeah they definitely can use SMT so the fee is minimal but it's not out yet. We desperately need a more reliable stablecoin on this chain compared to SBD.

If they worry about regulations and credibility of Tether inc. how about if the SMT is backed by dai instead of relying on any centralized entity?

sbi-skip

18.10.2019 11:30
0

We're working on setting up partner companies that have the necessary licenses to mix cash and crypto. It just takes a lot of time, especially because the regulations keep changing. Adding USDT was just a stop-gap measure.

On the positive side, the delays imposed by all the regulatory hurdles are giving us time to develop some cool software offerings that we can deploy when those partner companies go live.

18.10.2019 17:20
2

.. thank you for this useful information..up..follow you..

18.10.2019 13:25
0

On steem?

Self proclaimed community watchdogs are actually hacking and stalking people.

This group https://goldvoice.club/steem/@fyrstikken, They are hacking people that enter this discord server https://discordapp.com/invite/sqxV63P . Once you are hacked they profile you long enough to know all of your activities. They introduce workplace gangstalking visits and bring it to your attention cleverly and discretly so only you get it. They are very covert and tricky with everthing they say and do in this server. Some claim to have worked for or are working with the FBI and the NSA. Mixed with decomisioned traders and coding criminals, Its a scary mix of creepy people and thier intent is to drive you crazy and deplete everything you have ever aquired in life, even your freedom.

My hacking started with them introducing ransomeware that has options, dump my coin or delete my system drive. They acnowledged this to me in the server as it happened.

This hacking and stalking is done so they can manipulate the target to pump and dump for them. Threating and Making victims wear head phones, so nobody in your household can hear thier dramitization towards you. In 2017 this server was sidemarked as a drama show for entertainment purposes only as en excuse to say whatever they want all the way down to killing a politician. They have a server side command called "hey asshole" making a promt come up instructing everyone to wear headphones. They want everyone wearing headphones so nobody in your vicinity can hear them mess with you. Fystikken says its because of "mic feedback" but once your a target you get exactly why they make eveyone wear headphones.

With headphones on they subliminally direct victims with very low suggestive whispers mixed into their radio shows music. Combine this with them being able to manipulate their own individual outputs sound volume, which they control on the server side, they can pick what individual people hear and what at any given time. They decide who you hear on the server and change the volume controls for them. They can make some really low or off for those trying to investigate. They control who hears what and know who is who.

This team will find absolutely everything they can about you prior to using thier sugjestive and threatning program. They Introduce pictures that mean something only to the target, inducing paranoia while they watch and listen thru all of your circumvented devices. They are very aware of what makes you tick. They know your work schedule and use it for work stalking along side of this. I received multiple threating letters to my work and home addressed to my screen name from this group.

Fyrstikken tells people to sell their houses to buy crypto then dumps it on them. He has done many pump and dump scams. Quatloo being one of the first I witnessed and was done multiple times thru 2016 and 2017 them. It should be investigated for fraud. https://bitcointalk.org/index.php?topic=655793.0

18.10.2019 13:53
0