Review on Tether by Danh Huỳnh Ngọc Công
Tether is my favorite coin for trading
Tether is my favorite cryptocurrency whenever I trade on exchanges as it gives me the feeling of safety. It is also a good place for assets storing. Also, it is traded widely on a huge number of exchanges so I can easily find a place to trade it against other coins/tokens. However, it is so suspicious when there are a lot of rumors about it transparency. Other people should diversify their holdings in case of bad news in the future
Updated 5 years ago
Rating has not been changed
Positive point: There are now TRC20 Tether and ERC20 Tether on Tron and Ethereum blockchains for the easy of trading against other cryptocurrencies on decentralized exchanges
Pros
- - As trading against fiat is illegal in some countries, Tether is a great way for traders and investors to put safely transfer their assets to the decentralized world, and start their first journey in the cryptocurrency world.
- - Trading with Tether is a good solution who is used to trading stocks against USD or who is afraid of the volatile of cryptocurrency market
- - Tether plays an important role with the companies that need a safe shelter to store their backup funds in case of any fluctuation of their businesses
- - It is traded on most of the exchanges so it is very easy to find a market to buy and sell cryptocurrencies against it
- - The security level of Tether is very high as it is issused on Bitcoin blockchain via Omni Layer Protocol. To host a double spending attack on Bitcoin blockchain, it costs $673,262 per hour which means the possibility of an attack is low
- - Transaction fee for the transaction of Tether is zero (it is usually high on some exchanges and external wallets)
- - Every Tether is backed up by one US dollar and audits happen very regularly
Cons
- - The existence of the treasury backing up Tether is still a big question. There is a lot of time Tether foundation was accused of faking the amounts of money they keep to peg with the value of Tether. Although the everything was cooled down after the controversy broke down, it is suspected that there must be some reasons leading to Tether being targeted from times to times
- - The problem of fiat is they comes with inflation; holding USDT makes the owners face the risks of their funds' reduction
- - Tether is also told to be involve in the market manipulation. There are a lot of evidence shows that they did some malicious activities to control the price of the whole market.
- - There is almost no decentralization in the nature of Tether. Its issuance and pricing are fully under the control of the company behind it
- There are more and more stable coins issued on the market. Many of them are proven to be backed by the real funds with very clear evidence verified by prestige organizations
