4 Reasons Why USDT (Tether) Was Created
Stablecoins are ingenious additions to crypto. Without them, it would be hard for investors to consider the sphere because of the relatively high volatility.
Volatility is good and bad. However, when crypto prices are dumping, the role of stablecoins is amplified.
USDT is one of the most liquid. The issuer has minted roughly $62 billion of the stablecoin across various blockchains, including Ethereum, where it exists as an ERC-20 token.
In addition to value preservation, USDT and stablecoins were created because they merged the borderless property of cryptocurrencies and the stability of fiat.
As a result, funds could be moved anywhere without paperwork.
USDT also offers exchanges a high level of liquidity while concurrently protecting their bottom lines against the volatility of cryptocurrencies.
Top exchanges like CryptoAltum draw maximum value from USDT since the token also offers a secure payment method cushioned from the volatility associated with cryptocurrencies. This is because every USDT in existence is pegged to the USD.
Regardless of the destination, the value will remain constant, an attractive feature for traders and exchanges.