Why choose USDN compared to USDT?
On January 16, 2018, USDT was introduced and most of the world’s top 50 cryptocurrencies, including Bitcoin, Litecoin and Ethereum, experienced a sharp fall in prices, with only USDT’s price increased.
What is USDT? Many people wondered.
USDT is a US dollar-based coin based on a stable value offered by Tether, which strictly complies to a 1:1 reserve.
As a result, the users of USDT increasing.
However, the large number of USDT users does not mean its popular. USDT users are numerous due to the stringent measures taken by many governments to exchange token and fiat currency. Only off-exchange can directly exchange the token and fiat currency. Furthermore, the process of over-the-counter transaction is troublesome, and the premium is relatively high. At that point, the USDT, which is billed as equivalent to the dollar, is the first choice for most people.
But USDT is also subject to the market controversy due to its over issuance and inadequate margin reserves. So, based on the capital security, platform stability, etc., I suggest you choose the USDN stablecoin instead.
1. USDN is a decentralized stablecoin
USDN is the stablecoin of the NGK.IO blockchain designed to store and exchange the value of all contracts in the blockchain and promote the NGK blockchain. The mechanism is decentralized. Therefore, it can ensure the transparency of the USDN’s assets without trusting on third parties.
While USDT is a centralized stablecoin. This means that if Tether or the bank which the bank account is based on collapse, the account’s funds freeze, or Tether flees, any of these would cause the collapse of Tether’s USDT stablecoin.
Even without these risks, the centralized USDT is vulnerable to hackers.
However, in the decentralized USDN, the nodes are not alone which prevents the attack from hackers, and no black box operation.
2. USDN is 1:1 to US dollar
The USDN is a 1:1 anchored US dollar. The price of 1 USDN is about US$1.
However, Tether, which has long claimed that a USDT token is a dollar, changed its word in a 2019’s update. In short, USDT no longer claims to be a 1:1 ratio at the bank.
USDN passed the equity endorsement of STO. It was approved and regulated by the US Securities and Exchange Commission (SEC). Besides, it has a US MSB blockchain license. Therefore, USDN provides multiple guarantees to the users under multiple regulations.
On the other hand, USDT has no supervision and no audit.
For common investor, the capital security and platform stability are very important. Based on the above analysis, you can see clearly why I suggest you to choose USDN!