Tether (USDT) Cryptocurrency and Blockchain Guide
What is Tether (USDT)?
Tether (or USDT) is a cryptocurrency that is backed $1 USD (Fiat money) for each token as announced by its distribution company, Tether Limited. For this reason, it is known as a stablecoin because its value will always be worth around $1 USD if the reserves are accurate as claimed.
Regardless of the announced backings, Tether limited stated that there is neither contractual right nor guarantee for owners to redeem USDT for dollar.
Full name: Tether
Chinese Name: 泰达币
Ticker Symbol: USDT
Coin Price: Latest USDT Price
Co-Founders: Brock Pierce, Craig Sellars, Reeve Collins
CEO: JL Van Der Velde
Prominent Group: Tether Limited
Consensus Protocol: Omni Layer
Max Coin Supply： No limit
Block Explorer: usdt.tokenview.com
USDT was originally known as “Realcoin” in July 2014. Realcoin was officially launched by co-founder Brock Pierce, Craig Sellars, Reeve Collins and was renamed to “Tether” in November 2014. The development team including the creators claimed that every USDT token is a digital stablecoin and will be backed by one US dollar.
As stated on its website, Tether was incorporated in Hong Kong and all of its USDT tokens in circulation will always match their reserves, with reserve holdings published daily as well as subject to frequent professional audits. On 1 May 2019, Bloomberg reported that USDT Stablecoin was only backed 74% by cash and this was confirmed by Tether Limited’s lawyer.
Some traders trade USDT coins because the price had always been stable at around $1 USD and was not affected by wild speculations or price swings as of today September 2019. Traders can trade their crypto coins to USDT tokens after making a profit, wait for the price to drop and invest back in the same coins that they profited in, taking advantage of arbitrage opportunities without the need to use bank wires. Some traders prefer to move profits to Tether instead of fiat because few exchanges allow trading of coins to fiat. Those that allow crypto-to-fiat trading usually charge much higher fees and it is much more difficult to withdraw fiat out of exchange due to government regulations.
There are concerns among traders that Bitfinex, one of the largest cryptocurrency exchange in the world by trade volume, created Tether to stabilize and manipulate Bitcoin prices especially after critics informed that CEO of both Tether and Bitfinex (Jan Ludovicus Van Der Velde) was the same person. Most cryptocurrencies have a finite coin supply, but that is not true for Tether since new USDT coins can be issued whenever customers purchase Tether with fiat currencies.
Tether became the cryptocurrency with the world's 6th largest cryptocurrency market cap of more than $4.1 billion USD as of 16th September 2019.
[Rating: 3 ]
I was a USDT holder and got affected when tether was caught by auditors to be only partially backed by fiat currency. USDT then dropped below $1 and I lost money. From then on, I stayed away from it.
Wrath of Saint (01/08/2019 12:10:58 PM):
★ ★ ★ ★ ★
Best stablecoin ever!! I always switch my trade profits to it after a good season. Never fails.
EOS Geek (11/09/2019 11:29:45 PM):
★ ★ ★
Nah, it is only a decent stablecoin. TUSD is better.
View all »
Write Your Review
Read Verge (XVG) Cryptocurrency Guide