Should You Trust USDT(Tether)
Have you ever heard about any USDT slander? Lots of people have been saying that one of the most unsafe StableCoins out there but its one of the most used StableCoins in crypto. You must have seen the FUD that Blackrock is spreading against Tether, it goes like this, Blackrock is saying that tether is not backed by any utility or fiat, it is being minted from thin air with no backing. Almost all crypto exchanges use USDT, BTC is mostly paired with USDT, they still claim that USDT is creating fake demand. Blackrock is not the only people talking about how StableCoins is unsafe to use based on fake demand.
This is the reason decentralised stabelcoin is advised to use, because decentralised stabelcoin is backed by algorithm which other crypto asses are used to back the stabelcoin, for instance the HBD stabelcoin is backed by Hive and its algorithmically backed in a way that when the blockchain detects an increase in price, it begins to sell off to reduce the price and when the blockchain detects decrease in the stabelcoin price, it started buying to increase the demand. But after Luna UST Depeg, because UST is an algorithmically backed stablecoin, people had some skepticism and doubt about algorithmically backed StableCoins.
In stabelcoin chart, USDT tops the chart, but due to its controversy, doubts have been associated with USDT since they have been unable to provide documents proving their stabelcoin is backed by real assets. Trade and store USDT at your own risk, for now my go to StableCoins are HBD, DAI because its backed by ETH, and USDC because it has no controversy. BUSD used to be my favourite stablecoin but got sued by SEC.
Posted Using InLeo Alpha