Crypto Academy week 6 post for [@yohan2on] // Tether Stable Coin
Hello prof @Yohan2on I will be giving a simple explanation on what I know about Tether
First of all let look at what Stable coins are : these are coins that are evolved to run with some target FIAT or stock on a ratio of 1:1 , meaning they are expected to have a value equivalent to them examples are SBD,USDT,BUSD etc.
In my work today I will be talking about Tether stable coin.
Tether is one of the most stable and popular coins in the crypto industry, it was launched in July 2014 as a real coin and later rebranded as tether .
Tether has been unique in the system for long because it value can be estimated to a ratio of 1:1 with USD and it is the best when it comes to exchange, investment and trading .
Tether belongs to the collateralized stable coins that can offer a user a platform to access more fund to trade with . It is known to be used by 80% of traders all over the world .
It is working hard to build the bridges between FIAT currency and the Crypto currency and one can trade with tether with no fees being charge like transactions fees charge in other crypto transactions even if there is in some exchanges it is very low because their value is close to USD
As at now tether is the most traded coin in the world and it is the best time to invest in tether because runs with USD in a way that if you have 50USDT you can exchange it for 50 USD , research made by experience traders advised that one should start investing in Tether because since 2020 it price began to increased till 2021 and it expected to increase higher . It is backed my fiat currencies like USD and Yen which makes it trusted and reliables and as at now there is no stable coin like this and very cheap to buy .
Tether ( USDT) has a competitor called USDC which is also a stable digital coin that is pegged to USD and this run on Ethereum blockchain .
USDC is issues by a company that is licensed in the USA and it is protect by the USD this makes the argument why USDT might be challenged by USDC
As I explained above this is the most traded stable coin in the world since it evolution in 2014 , it has had couple of hacking but still managed to be at the top .
In the coming future it is going to change the mode of exchanges in the international society, it will be the best mode to store profits in cryptocurrency .
There has been a whole lot of criticism and complains because of the fact that it has been pegged by the US dollar , but the the official Tether site is not guaranteeing the stability of its value .
Lately a huge amount of about $33million was Frozen due to the hacked is experienced it had this expose Tether to be a centralized coin that reject the Decentralization of. Blockchain ecosystem.
This are few information I can tell about Tether and I know is one of the stable coins and reliable but in the crypto world you can’t be 100 % sure
Hi @rafyray
Thanks for attending the 6th -Crypto course and for your effort in doing the given homework task.
Feedback
However, Tether is not a good investment in terms of yielding a return of investment reason being that, it's value is fixed year in year out. It remains pegged to the USD regardless of the fluctuations in the Crypto market prices. It's just a good one for safeguarding the Crypto traders investments from the high market volatility.
Otherwise, this is good work well done with your research study on Tether.
Homework task
7.5