Before today, I had no idea what Statera was. And because of that, I didn't want to write some article explaining what it is and give out wrong information or try to be something I am not. So today I will simply write an article about my opinion of Statera.

* I am writing this article for the Writing Contest here on Publish0x*

A little background to what it does

At first I thought it was an exchange but then I quickly realized it was a token but a little more than that. The way they will describe themselves is as follows:

Now if you want to understand it like a non super geek (like myself) then this is how I would describe it:

A crypto token that has a back-end pool of different tokens to stabilize it's price. 

There are few things to note that are different for Statera.

- Every transaction that occurs with statera will result in 1% of the AMOUNT on that transaction being destroyed. And Statera has stated that there is no way to mine it or create more tokens ever. To the best of my ability there are 88,356,143 Statera (STA) out there in the world. And that number is going to slowly deteriorate as more transactions occur.

-They have this thing called a "Balancer Pool" which means it has a portfolio of a few tokens that is always keeps hidden away from people to stabilize the cost of Statera. The pool is always buying and selling the tokens to balance itself out. To be honest I think its a pretty cool idea and really well though out.

So now onto my thoughts about the token itself.

The Use Case I can see this for is purely for holding the Token as a stock like token. They have a Phoenix Fund where you can hold the 5 tokens the Balancer supports and earn money on it. I think most every day people will get some tokens or buy a little of a few and try to wait to see if the tokens they have explode and they can BANK. Everyone expects the Bitcoin price bump to happen to other tokens and it probably won't. So investing in Statera as a long term investment is a really smart idea. 

Obviously if every used it for that purpose it probably wouldn't do to well but still an idea. That being said I don't see any reason other than investing to buy this token. You are not going to be buying Pizza's with your STA anytime soon if ever.

My issues about Statera:

I don't like the name. For some reason I kept wanting to write Stratera. Why did I want to put an extra 'R' in the name? I have no idea haha

While I like the idea of burning 1% of the value of each transaction I think it terrible for long term planning. So with 88,356,143 tokens worth $0.05 each that is $4,417,807.15 right now. Say I buy $1,000 worth of tokens today. That would mean I get 20,000 STA tokens worth $1,000. But that would also mean that 1% of the value I bought would get burned. So $10 or 200 STA.

I see only 2 options long term that could happen. The amount of STA tokens is going to exponentially decrease from 88 million to something way less. That means either the price is going to skyrocket for each STA because there will be less of them going around but all the people that invested into it will still have their money worth backed by the balancer pool. The second outcome could be the price is going to TANK to compensate for the lack of tokens as compared to when it started out. 

Closing Thoughts:

The crypto space is insanely over-crowded. There are a lot of shit coins out there. There are a lot of cool coins out there. And then there are coins that are trying something new. Statera is going to fall into one of those 2 categories as times goes on. I applaud them for trying something new and hope that it really breaks through and does well. But I have my doubts.