Crypto Academy Week 6 - Homework Post for [yohan2on] What is Tether?
Hello @everyone! I hope you will be fine and good. First of all i want to thank to the Prof @yohan2on for the wonderful lecture on the Stablecoins. The lecture was very informative and full of information. As i have learnt many things from that lecture and now i am going forward to write the homework assigned by the Professor.
As our today topic is about to write about the satblecoin so first of all i want to define the term Stablecoin.
What Is StableCoin
Stablecoin is basically a term which is used in the cryptocurrency. This term is used for those coins which are stable by connecting them with the fiat currency such as they may be stabled by connecting them with the USD (US Dollar), Gold. Such coins stable their price value by some of the algorithm techniques.
Tether(USDT)
USDT is also a stablecoin which is connected to a fiat currency to make it stable. It was introduced on the Bitcoin Blockchain by the Omni Protocol. Its value is fixed with the usd. It can be trade, transfer like other cryptocurrencies such as Bitcoin, Dogecoin, Litcoin...etc.
USDT has become most popular crypto coin in the whole world and most of the other coins are being bought by this . It is ranking in the top list of the cryptocurrencies. According to the Coinmarketcap.comit is ranking at the position of the 4 as i have attached the screenshot from Coinmarketcap.com
According to the Coinmarketcap.com:
| CoinMarketCap | Key Information |
|---|---|
| Market Cap | Total Market Cap of usdt is $39,512,266,560 |
| Fully Diluted Market Cap | $41,632,016,187 |
| Volume | $83,402,036,823 |
| Circulating Supply | 39,517,067,876 USDT |
| Market Rank | #4 |
Price Chart
This is the all time price chart of the Usdt. We can observe that the price of the usdt is almost constant . It fluctuates but very small. In April 2017 it fall down to its lowest price of about $0.92 but similarly after one month it went to its highest price of the history which was about $1.08. This proves the stability of this coin that it fluctuates very small.
This is the today price of the USDT. We can see the chart which is showing the somewhat downtrend of the usdt. But we can notice that the fluctuation of the price is very small. Its today highest price is about $1.002993 and the lowest price is about $0.999557. Now we can see that very small change which can be negligible.
This is the live trading chart of the usdt obtained from the tradingview. This is the BTC/USDT Chart. This data is obtained from the worlds most famous exchange platform Binance. This is the one day chart.
This is the historical data from 22 january,2021 to 19 March, 2021. From this historical data we can analyze that there is no any fluctuation in the price of the usdt. It is almost same on all the days.
USDT On Solana
From this tweet which is of the official account of the tether(usdt) we can know that tether has been launched in the solana. Solana is the fastest way of transactions and there is very low fee for the transactions. It does not matter there that how big your transaction is the fee is fix for the one transaction which is about $0.00001. This is a new revolution in the whole market of crypto with this very low fee transactions.
USDT(Tether) Rating
From this chart we can observe all the data of the USDT on almost all the big exchanges.
| Exchanges | Volume |
|---|---|
| Bitfinex | 772.7M |
| Binance | 458.5M |
| Huobi | 204.5M |
| Other Exchanges | 1.7B |
| DEX/DeFi | 416.2M |
| USDT | Users/Holders, Supply, Financial Services |
|---|---|
| Top Holders | 4.9B |
| Smaller Holders | 2.4B |
| Mint | 1.6B |
| Burn | 0 |
| Other Financial Services (Misc) | 68.9M |
| 30 Day Activity Supply | 12.5B |
| Net Issuance | 2.4B USDT Tokens |
USDT Analysis
Advantages And Disadvantages Of USDT(TETHER)
Advantages
- Very Small Transactions fees.
- Very vast project with multiple networks like ERC-20, BEEP...etc
- Price stability is the most important advantage of the USDT.
- Anyone can hold usdt. There is no any restriction.
- Easy to use to buy other coins by using usdt.
Disadvantage
- As it is decentralized project so the price may fall any time.
- The owner or whole team can deceive users by selling their coin at high price and after that varying the price to low.
- To hold usdt for future cannot give anything valuable as it is stable coin.
- There are no clear audits by the company. It is very bad thing about usdt(Tether).
Conclusion
I will say if you want to hold your crypto safe and sound means to say you do not want to take the risk of price fluctuation then holding of USDT(Tether) is well and good for them because it does not fluctuate much.But if you want to take risk then you should invest in other Cryptocurrency like Bitcoin, ethereum.
All The screenshots are taken from the coinmarketcap and all other are mention already.
Hi @mohammadfaisal
Thanks for attending the 6th -Crypto course and for your effort in doing the given homework task.
Feedback
This is good work. Well done with the research on Tether.
Homework task
8
Thank You Professor means a lot for checking my homework post. Tether is a good stablecoin which is going on everywhere as we can buy almost all the crypto assets with the help of usdt(Tether)
Sir @yohan2on you added in your post that Steem Backed Dollar (SBD) as the stablecoin but i do not think it a stablecoin as its value fluctuates all the time. As you can see that today its value went to the peak of its value of this week. But before this it had low value.
So we should not consider it a stablecoin or tell me sir the condition of stablecoin as its value is not pegged with any fiat currency in my opinion.
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