USDX might replace Tether (USDT), Here’s why

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The last few months have seen Tether (USDT) the stable coin that acts as a bridge between fiat and crypto coming come under scrutiny. That’s because of the opaqueness with which it operates despite having a massive effect on the crypto market. Just to put this power into perspective for you, if Tether were to go down today; the effect on the crypto market would take years to rectify. For instance, a tether collapse would most likely be followed by a collapse of Bitfinex, one of the largest and most liquid exchanges on the planet. We have all seen how exchange hacks have negatively affected the market in recent days, right? Now imagine how much of an impact the collapse of Bitfinex would have on the market! That would easily wipe out more than 80% of the value of bitcoin, and kill the altcoins market.

Don’t get scared though, a research by Bitmex has shown that Tether is actually stable, and has the assets to back-up all the USDT that is pumping into the market. This is clearly spelled out in the research where it reads as follows,

“There is some scepticism about Tether, with accusations that the system is not backed by sufficient reserves. We think that scepticism is misplaced. We have found possible evidence in published financial data that the impact of Tether may be visible in Puerto Rico’s banking system…”

But as an investor, this is not good enough. The fact that Tether USDT has no transparency in its operations is still a risk. The biggest risk is that the company could easily fall prey to a government crackdown, and the doomsday scenario described above would come true.

That’s why the entry of USDX into the stable coins market is good news for the crypto market. The beauty of USDX is that it is decentralized and trustless. It will run on smart contracts to ensure that no intermediary can use this coin to manipulate the crypto market, as it has always been rumored to be the case with Tether. Besides, given that it USDX is decentralized, chances of it being brought down by government regulation are minimal. It conforms to the true nature of cryptocurrencies, and that’s decentralization.

The best part about USDX is that it is likely to give confidence to new investors looking to put their money in the crypto market. That’s because it will bring in an element of stability in a market that is often rumored to be manipulated using Tether USDT. In essence, new investors especially institutional ones, would come in knowing that the value they are paying for bitcoin and any other crypto is the true market value for that crypto, not some manipulated figure.

That’s why a replacement of USDT with USDX could actually be the best thing that has ever happened to the market. It will be a big reap towards the maturity of the crypto market, as a stable investment!


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