The Problem Centralized stablecoins are riskier than most people think. If you are holding a significant amount of Tether in your portfolio, you probably know what we are talking about. While keeping centralized stablecoins in your wallet, you trust a single entity not to mess with your money. When it comes to Tether, you are trusting Bitfinex. You never know whether they are holding an equivalent amount of US dollars in their bank account. The problem is: nobody can verify it. There is always uncertainty left.
MAKER - The Backbone of Decentralized Finance
MAKER - The Backbone of Decentralized Finance
MAKER - The Backbone of Decentralized Finance
The Problem Centralized stablecoins are riskier than most people think. If you are holding a significant amount of Tether in your portfolio, you probably know what we are talking about. While keeping centralized stablecoins in your wallet, you trust a single entity not to mess with your money. When it comes to Tether, you are trusting Bitfinex. You never know whether they are holding an equivalent amount of US dollars in their bank account. The problem is: nobody can verify it. There is always uncertainty left.