Review on Tether by Othere Obtentus
Stable coin
Tether, or as its symbol "USDT" is one of the very earliest stable coins. Every Tether token (USDT) has to be pegged to one U.S. Dollar and therefore give traders a safe place to store their money as they exit investing in BTC , ETH, or other matched virtual currencies. Like a banking system, Tether's coins are
"printed" and then sold to investors. In principle, someone who owns a volume of Tether will submit it to Tether Limited and obtain the amount in cash. Tethers operates on blockchains using the Omni Protocol, a system primarily designed for Tether Limited.
There has, though, been a lot of debate surrounding the USDT. There has been many controversies regarding its reserve and issuance system. Since USDT is also on the Ethereum network, several users have found out instances
of Tether corporation distributing large volumes of USDT within a brief period of time. Some believed USDT is the ticking time bomb that would spark the next big crypto crash.
Pros
- Longest established stable coin
- Widely used across many exchanges
- Price stability
- Parking assets when exit trading
- One of the biggest crypto currency
- Recently released of audits help transparency
Cons
- Controversies surrounding its reserve system
- History with hacks
- Relation with Bitcoin and Bitfinex
