9- Tether (USDT)
Market Cap: $138.31 billion.
Current Price: $0.999.
The price of Tether is fixed at $1 per coin; being a stablecoin, stablecoins are pegged to the value of a specific asset, such as the dollar, and Tether often serves as an intermediary when traders move from one cryptocurrency to another. Instead of going back to the dollar, they use Tether, however, some people are concerned that Tether is not securely backed by the dollars held in reserve but instead uses a short-term form of unsecured debt, according to the "Bankrate" platform.
Pros
Stability: Tether is designed to maintain a stable value by pegging it to the US dollar, making it a useful asset during periods of high volatility in the cryptocurrency market.
Liquidity: Tether is widely accepted on most cryptocurrency exchanges and trading platforms, ensuring high liquidity and ease of access to trading with other cryptocurrencies.
Easy and cheap cross-border transactions: Tether allows for fast and inexpensive transactions anywhere and anytime, making it useful for remittances and international trade without needing banking systems like "SWIFT."
Cons
Centralization Risks: Tether is issued by Tether Limited, which is a centralized entity, posing certain risks to users regarding counterparty risk and reliance on the company's ability to maintain the exchange rate against the dollar as well as the integrity of their reserves.
Regulatory Uncertainty: The currency has faced regulatory uncertainty and scrutiny in many countries, and concerns about compliance with financial regulations and a lack of transparency have led to investigations and legal issues.
Smart Contracts: Tether lives on blockchain networks and relies on smart contracts, and failures of these smart contracts or any other security breaches on individual blockchains can lead to losses, according to the "Very" platform.