The dark side of USDT (TETHER) - The most important stablecoin in the crypto market.

What do you imagine when I tell you : USDT ?

I'm sure most of you understand what a STABLECOIN is. But if there's anyone out there who doesn't know what a stablecoin is, I'll explain.

A stablecoin is a token that is associated with a fiat currency such as the dollar or the euro. The purpose of this is to provide shelter from the wild volatility of the cryptocurrency market. This makes it easier to take profits or reduce losses.

Is USDT really a dollar-backed stablecoin?

Well that's what we all believe, or at least that's what the people at TETHER tell us. We can say that this stablecoin was launched between 2014 and 2015 by the famous exchange called BITFINEX through a signature with the same name of the token, (tether). the latter to give liquidity to the USDT.

The truth is that USDT is a chip. Yes, like a casino token. The purpose of USDT as a token is that you can exchange it for other cryptos such as BTC, BCH, ETHER ETC.

Due to regulatory problems, laws and restrictions, there was a shortage of dollars in the exchanges. That is why USDT was born, as the longed-for messiah.

The truth is that yes, this stablecoin was a solution to protect against the volatility of cryptocurrencies. The problem is that Tether promised to back its "crypto dollar" in physical dollars. Apparently the firm behind USDT has failed to verify that the amount of coins in circulation is the same as what they have available in cash reserve. As early as May 2021 they had stated that less than 3% of their reserves is in cash, the rest perhaps in treasury bonds and other dirty tricks that only people on wallstreet know.

(USDT) is the LEADING stablecoin. But a leader that is worth checking out very well.

At this moment the marketcap of USDT is $82,834,478,892 ! not bad for having so many unresolved issues. To top it off, it ranks 3rd among cryptocurrencies with the largest market cap. The worst part of the case is that USDT is so important to the crypto ecosystem that a loss of liquidity of this stablecoin could hurt the cryptomarket in general.

I don't want to come across as a hater as they say out there. 'But things are what they are. The TETHER company has been by far, not at all transparent with its affairs. This should give us something to think about. Nowadays an interesting phenomenon is happening and according to my personal opinion, very healthy for the cryptocurrency world, and that is the appearance of much more legitimate and reliable stablecoins, just to name a few:

• UST (DE Terra LUNA)

• USDC

• BUSD

• NEAR PROTOCOL USN coming soon

undoubtedly there are many options before USDT, I myself use more BUSD from the BINANCE SMART CHAIN chain, which many do not know, is better audited than the market leading stablecoin. I heard from someone out there that TETHER is: practically a SCAM that we all know is there but somehow we make use of it, and there is a lot of reason in that.

This post is as always a very personal stance. I believe that nowadays we can start to make use of those emerging stablecoins that offer us something better. However, the practicality of USDT is undeniable, especially for those of us who live in Latin America. It is up to you to do your own research and draw your own conclusions.

I want to give a very special thanks to my sponsors for their continued support of my content. Also to all those people who take a portion of their time to read my posts. I'm @ozzycrypto and I'll see you in a future post.