Review on USDX by Pedro O. Alvino M.
stablecoin backed by another cryptocurrency
The USDX project that provides a cross-border payment system through a mobile app for both Android and iOS, uses the USDX stablecoin, which is unlike other stablecoins and is backed by another cryptographic asset of the USDX ecosystem called LTH
The payment service provided by the project, which is partially centralized, is easy to use to process payments on the USDX platform network, which does not present network fees for sending USDX coins and is capable of processing a large number of transactions. However, the problem that lies in the currency is the volatility that it presents, that despite being a stable currency, its price did not even reach half the US dollar, the cause of this fact is that being backed by another currency, the value of this currency can seriously affect the value of the asset being backed, something that happened in this fact so the LHT currency has had a poor performance in the market and that affects the stable price of USDX, which in its market history never reached the price of a dollar.
Many of the projects based on stablecoins use financial reserves to support said currency, but a large part of the projects that seek a cheaper solution to start a stablecoin is the support of another crypto currency, so it is very risky, but it is an option due to lack of capital, something that happened in the USDX project that in the end could not manage to stabilize the price of USDX.
Pros
- Offers cross-border payment services with completely zero commissions.
- It has a network speed with more than 100,000 TPS.
- The USDX stablecoin is backed by a smart contract.
- It has a simple wallet for processing and receiving payments in USDX currencies.
Cons
- The volatility of the USDX currency is well below being considered a stable currency.
- The project is partially centralized.
- The volume and availability of the USDX stablecoin is in constant decline.
- Numerous competitors in the market.
