Tether or usdt is a stable coin attached to the US dollar, recognized by its ticker symbol. It is a stablecoin attached to a flat dollar, which means that the price of bitcoin and the juggling of the crypto market do not affect it. USDT is the third largest cryptocurrency by market capitalization. But it is not a safe investment though despite that people use it to facilitate crypto trading, transfer money and earn interest. There is no transparency around these coins so making them even riskier?
IS USDT a fraud coin?
USDT is not a central bank, a bank regulated in any way by any country other than the British Virgin Islands. It is not audited and has been fined by financial regulators for financial wrongdoings. Furthermore, it has also been stated that the US dollar but USDT still trades at about a dollar back the stablecoin. The USDT scams are disclosed when asset holders asked for compensation but the financial institutions was unable to compensate customers. If not apprehended for the first time, such a fraud can go on for a very long time if:
- Assets holding are fixed in a few hands
- Asset holders are part of the fraud
- Regulators do not care
However, in USDT's case, these are all correct. According to the report, about a hundred accounts control the major part of the circulation.
Do you want to avoid these scams? First, know these frauds
Financial investments can be risky especially when you dealing with USDT. You do not have to put your cyber security into this. To that end, here is an over of how to recognize these USDT scams and proceed with caution when doing transactions.
Business opportunity scam
Investment or business opportunities frauds stars with an unsolicited offer want to you become a stable coin investor further luring you into an unsafe website. Here you will learn about the opportunities and start investing to make quick money. After finishing the transaction, you might find there is no money left. These frauds are very similar to crypto scams or Ponzi schemes which you must avoid.
Impersonation stable currency scams
A scammer or criminal will come to you as a trusted source and ask you to complete a USDT transaction. They might even come as a government official or credit card provider. You will find their messages in the email and ask you to invest. USDT or tether is not backed by the US dollar so there is no guarantee that you will ever get money after investing. For your financial security do not rely on these emails and do not fall for USDT scams that often come as a one-time offer only. For security measures, double-check the source using another channel and verify the website before making any transaction.
Give away stable currency fraud
Like social media and impersonation frauds, giveaway scams are when victims are drawn to a trap to send usdt to someone in return for a big giveaway. A person with decent followers might tell you that there is a big return on certain investments only limited for the day. Followers will be sending money to the scammers only to find no investment again.
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