Review on Tether by Japheth Ayuba
A Stablecoin that can be used to hedge against volatilities
Since the beginning of the recession period in Nigeria in which the value of the Naira began to fall, I decided to buy into the USDT as a form of buying into USD to hedge against the inflation season coming our way in the country. The reason I used this illustration is that, while trying to buy USD from an OTC in the bank, one has to go through different levels of verification and questioning before being allowed to buy, even after buying, the slippage in price of buying USD is so high that even of one decides to sell in a shorter time, he/she might end up with losses. But using USDT, it was more of a simplified process although I went through the rigours of KYC on exchange to buy the token but bypassed them by using Kucoin exchange which doesn't makes KYC mandatory. My holding of USDT has helped me eliminate or escape the inflation to the Naira value without bank stress and using it to transact to other people in other countries, it supports a rather faster method of facilitating this transactions which is done usually in less than an hour depending on which blockchain the USDT is sent from. The cost is also negligible, also depending on the blockchain network used but all the same, it's still a preferable coin for dodging volatilities, not just locally, but even in the Crypto sphere. It's rate of volatility while comparing to other Stablecoin projects is lesser with USDT and makes it my most used Stablecoin.
Pros
- It's the most widely used Stablecoin and users are usually secured using the coin
- The value of USDT is tied to USD locked in bank holdings marking the coin as a stablecoin with lesser volatilities
- Transaction cost and speed are efficiently improved while comparing with conventional banking means
Cons
- There is no anonymity in using USDT due to KYC requirements by exchanges
