USDTether launches its own gold-backed stablecoin...what could go wrong?

I’ve heard so much controversy about USDT Tether and its related crytptocurrency exchange Bitfinex, that I scarcely know if they are fully legitimate. They have continually avoided full audits to show that all the Tether they are printing by the billion is actually backed by fiat dollars. And now they have just released a “gold-backed” version of Tether, calling it XAUT, an ERC-20 on Ethereum and TRC-20 on Tron blockchains.

Every time they print wads of new Tether, the Bitcoin price is said to pump. So much volume and “liquidity” appears to be flowing through Tether, that it can only be artificially inflating the market. I’m not sure this is a good thing now. Beside that, it’s certainly not gold that you are trading in here now in this new token, but only the price of gold. That’s your stable. No gold, no fiat, only a new crypto token, and price. How virtual is that?

And when Bitfinex had a problem last year with liquidity or whatever, they simply borrowed some of the fiat that backed Tether and filled the gap with that...several billion of it. Anyway, people still use Tether and Bitfinex. USDT is one of the most popular tokens traded today. What is that all about? Obviously people like the concept of keeping their profits in the stable coin when trading against the alts and even Bitcoin. I get the idea, and it’s a clever one, no doubt. But is it legit? That’s all I’m asking.

Recently a reputable economics news website zerohedge.com posted an article mentioning the event in what looked like a glorified a press release. I never knew these mainstream economics and finance industrialists were so interested in cryptocurrency but obviously they are.
https://www.zerohedge.com/crypto/tether-launches-gold-backed-stablecoin-begins-trading-bitfinex
Now which exchanges are going to host the trading of this commodity, or is it a security, or is it something else? Probably all of them. All the big ones, like Binance and those that want to profit. They are almost all happy to put profit over purity in this or any economics industry. That’s business baby!

Meanwhile the little fish get eaten by the sharks and whales. All the newcomers to the market lose a packet learning the ropes. Such is trading, and crypto is no different. I was lucky that I went in small to begin with in my introductory years, knowing I would need to refine my skills as a day trader and investor before putting more of my cash on the line. Actually I was lucky that I didn’t have much to even invest to begin with. And if you ain’t got nothing, you ain’t got nothing to lose. Nevertheless, I used USDT myself on most of my trading on Binance unfortunately. Now there are numerous other stablecoins besides Tether – for what they’re worth.

Still, Binance continues to be the biggest gateway for Tether, so they are all making a pretty coin on all the eager traders like us , the retailers attempting to ride along with the whales who manipulate the market quite easily. We just try to catch the splashes that they make in the market pool. Sometimes it works and sometimes not. But some people like high risk as much as they like profit. So it suits all types, this cyptocurrency trading sector. And now Tether has pulled out their gold card and folks will be jumping on board based on the fine reputation of gold and may not be aware of the shady reputation of Tether and Bitfinex.

I write to help inform now, so do be sure to DYOR (do your own research) and also to tell as many others what you have learned along the way. Many of us newcomers need to be informed, and we can all help each other learn form our insights along the way. Each one teach one hey?