Stablecoins like USDT have come under fire in recent weeks, casting a doubt on the entire stablecoin market.
SINGAPORE May 24 2021 (Blockchain Wire)
Stablecoins have been an important part of the cryptocurrency industry for a long time. They are built as a way of storing digital currency with a stable value that is pegged to a fiat currency, in this instance: USD. But the actual stability and security of some of the biggest stablecoins have long been a murky area. Especially with the biggest stablecoin around, USDT (Tether).
USDT recently hit the news as it underwent a major “audit”, partly to stay in compliance with a recent settlement agreement made between Tether and the New York Attorney General’s Office. But the veracity of this audit has been called into question by many crypto experts. Seen as an attempt to answer critics on what actually backs USDT, the audit still left many unanswered questions.
While Tether released a range of different figures, including that their reserves were made up of 65.39% “Commercial Paper”, no more detail was given—like the individual ratings of these backings or who they were issued by. Tether did not declare who the borrowers of loans were or what the collateral backing them was.
This still leaves a lot of uncertainty around USDT, and has not fanned flames on the rumors that Tether prints tokens in order to back up the market and keep the price of USDT at $1.
Major crypto exchange Binance has recently come under Federal investigation for potential money-laundering and tax issues. This casts more doubt on their own stablecoin, BUSD—one of the major and fast-growing stablecoin on the market.
This recent news has caused many to look for an alternative stablecoin option, and has undoubtedly increased the prospects for Samecoin’s new ecosystem. Samecoin has a family of stablecoins like SameUSD that offer a number of benefits in a congested stablecoin market.
Completely audited (by CertiK) with fully-transparent results, and with a clear smart contract listing exactly what backs every part of the Samecoin ecosystem, SameUSD stays pegged to the value of the dollar by being tied to a basket of other stablecoins—making it resilient against fluctuations so it always stays at $1.
Transparency is at the core of Samecoin’s offering—unlike many other coins that have often been opaque. Samecoin’s stablecoins like SameUSD and SameEUR offer a completely stable environment for people to enjoy the benefits of digital currency with a spendable currency that they can understand, and a coin that they can be sure will retain its stable value. Samecoin’s ecosystem also comes with an easy-to-use payment application, SamePay.
If recent developments have shown us anything, it’s that more transparency is needed in the crypto world, especially when it comes to stablecoins. Samecoin’s SameUSD gives users an extra level of peace of mind and a currency they can trust at all times, unlike some other alternatives. That’s why many experts are starting to recommend Samecoin for your stablecoin needs.
KEY Difference Media