Strangely, the Super Cute cryptocurrency BabyUSDT (BABYUSDT) is taking the token markets by storm. In fact, CoinMarketCap named BabyUSDT the most trending cryptocurrency on 4 September 2021.
Interestingly, I think BabyUSDT could become the future of cryptocurrencies with a new twist on an old strategy. The old strategy is to pay people to buy BabyUSDT by paying dividends.
To explain, the Baby USDT platform pays BabyUSDT token holders Tether (USDT) dividends. The plan is to pay 12% of every BabyUSDT transaction out in USDT to all BabyUSDT holders. Interestingly, BabyUSDT claims it will automatically send USDT to your digital wallet every 60 minutes.
Meet BabyUSDT (USDT)
In addition, BabyUSDT (BabyUSDT) tries to create liquidity by putting 2% of every transaction into Pancakeswap (CAKE). The hope is to create an auto liquidity pool. They hope the auto liquidity pool will BabyUSDT easy to spend and use.
They also dedicated 5% of each BabyUSDT transaction to marketing to promote the platform and charge a 1% sell fee to reduce swing-trades and finance the platform.
I think they designed BabyUSDT to solve some of the cryptocurrency market’s problems. For example, they hope to encourage real world BabyUSDT through a massive marketing campaign. In addition, they hope to discourage large speculators from manipulating the BabyUSDT market with the 2% sell fee.
Is BabyUSDT a cryptocurrency for Real People?
I think they intend BabyUSDT (USDT) to be a cryptocurrency for actual people.
First, they make BabyUSDT super cute to make it attractive to non-geeks. I’m not making this up the BabyUSDT website uses the term “super cute.”
Second, they pay rewards in stablecoin that can pay in real dollars Tether (USDT). Each USDT token contains a smart contract that makes US dollar payments when you spend it. They call Tether a stablecoin because its coin price hovers around $1.
Hence, BabyUSDT can reward users with fiat currency they can spend in the real world. You can take the rewards over to the grocery store and use them to buy food for your family.
Payment in Tether (USDT)
Importantly, Tether (USDT) is the world’s most popular stablecoin. CoinMarketCap estimated Tether was the fifth most popular cryptocurrency with a Market Cap of $67.513 billion, a Fully Diluted Market Cap of $69.37 billion, and a 24-Hour Market Volume of $93.464 billion on 6 September 2021.
Third, they plan to pay out regularly so people can see the payment.
Fourth, they plan a massive marketing campaign to tell people about BabyUSDT. The hope is to market BabyUSDT to non-geeks. No details of the plan are available. Although BabyUSDT claimed to have over 5,000 Telegram followers and over 5,000 Twitter followers on 5 September 2021.
The BabyUSDT team is making partnerships with influencers. I imagine that means they plan to pay influencers to promote BabyUSDT, probably with BabyUSDT.
They plan some other utilities, including a BabyUSDT NFT platform in the future. I guess the BabyUSDT platform will enable people to buy nonfungible tokens with BabyUSDT.
What Value Does BabyUSDT have?
Despite its popularity, Mr. Market gives BabyUSDT (USDT) a small amount of value. For example, BabyUSDT ranked BabyUSDT as the 1,665th largest cryptocurrency on 6 September 2021.
For instance, CoinMarketCap gave BabyUSDT a Coin Price of $0.00003091, a $1.435 billion Market Capitalization, a $2.737 billion Fully Diluted Market Cap, and a 24-Hour Market Volume of $353,657 on 6 September 2021. They based those prices on a Circulating Supply of 46.42 billion BabyUSDT and a Total Supply of 88.776 billion BabyUSDT.
In comparison, CoinGecko gave BabyUSDT a Coin Price of $0.00003100, a Market Capitalization of $1.699 billion and a Trading Volume of $124,925 on 6 September 2021. CoinGecko gave BabyUSDT a Market Cap Rank of 1889 on 6 September 2021.
Is BabyUSDT a Good Cryptocurrency?
BabyUSDT (BABYUSDT) is an interesting cryptocurrency because of the attempts to make it attractive to ordinary people.
However, I think there are some serious limitations to BabyUSDT. For instance, I see evidence BabyUSDT is scalable. They do not list a transaction per second (TPS) for BabyUSDT, which means there is no evidence BabyUSDT can process thousands of transactions at once. It will that capability to serve thousands of investors.
Similarly, BabyUSDT is built on the Binance Smart Chain and may not be convertible to other blockchains, such as Etheruem (ETH) and Bitcoin (BTC). That means it could tough to convert it into over cryptocurrencies.
However, they are using a proven strategy with a long history to promote BabyUSDT paying buyers in cash. Bonds, for example, have long paid holders with interest. In addition, many stocks, including Apple (AAPL), attract investors by paying dividends. Similarly, savings and Money Market Accounts and Certificates of Deposit (CDs) pay interest to get people to put money into those instruments.
The idea behind BabyUSDT, Bonds, savings accounts and dividend stocks is to attract investors with a regular cash payment. This stratagem is effective. Tens of millions of people own bonds and dividend stocks and put their money into savings accounts, CDs, and Money Market accounts.
In the final analysis, I think BabyUSDT (USDT) is an interesting cryptocurrency speculators need to watch. My advice for speculators is to avoid BabyUSDT until they can prove large numbers of ordinary people will buy and hold BabyUDST.
Originally published at https://marketmadhouse.com on September 6, 2021.