Home News Tether

Tether

What is Tether?

Tether Limited is the issuer of cryptocurrency stablecoin Tether, ticker symbol, USDT. Tether is a creation of necessity. A stable coin which would in normal situation act as a conduit through which traders would shield themselves from everyday’s volatility common of cryptocurrencies was needed and Tether Limited issued this fiat backed stable coin pegged to the USD filling that gap.

What Exactly Is Tether?

Tether is a blockchain-based cryptocurrency that serves as a stablecoin. According to the issuer, the Tether Limited, every USDT in circulation is backed by an equivalent amount of fiat currencies such as the US Dollar, the Euro, and the Japanese Yen.

Tether, which was previously named RealCoin, was created in 2014. It was changed to Tether by the parent company Tether Ltd and officially started trading in February 2015. It is currently the most popular stablecoin in the crypto space, with a market cap of over $2.5 billion. Its popularity has seen it been adopted by several cryptocurrency exchanges to serve as the dollar replacement.

In a report by The Wall Street Journal, roughly 80 percent of all Bitcoin (BTC) trading is carried out in Tether, and it is an excellent source of liquidity for the crypto market.

How Does Tether Work?

Tether was developed on a blockchain via the Omni Protocol, which is an open-source software that interacts with blockchain networks to enable both the issuance and redemption of digital currencies.

According to their official website, Tether converts cash into digital currencies. Since the stablecoin is pegged 1:1 to the US Dollar, it should be trading at $1 per coin on every cryptocurrency exchange. However, the price tends to fluctuate a little. Thus, it trades slightly above or below the $1 mark on certain occasions.

Tether claims that they are fully reserved when the sum of all USDT tokens in circulation is higher than or equal to the amount in fiat currency they hold. They also have a Transparency Page where anyone can view both the number of coins in circulation and the amount in reserve.

Features of Tether

As a stable-coin, Tether offers numerous advantages to cryptocurrency traders, investors, and exchanges. Here are a few benefits:

  • USDT is a stable currency more like ordinary fiat

  • It is 100 percent backed by fiat currency

  • The platform is built on blockchain technology

  • It has achieved widespread adoption

  • Tether is secure

  • Allows exchanges to accept USDT as an alternative to traditional currency deposit and withdrawal methods

  • Fiat balances can be settled between exchanges easier with Tether

How to Buy Tether

Purchasing Tether (USDT) is one of the easiest things to do. Since it is available on several cryptocurrency exchanges, traders and investors can have easy access to the stablecoin. Once you visit cryptocurrency exchanges, you can easily use Tether to purchase cryptocurrencies.

Alternatively, you can purchase, send and receive the USDT tokens on Tether’s official website. You will be required to register on the platform, complete all the necessary verification and security measures put in place and you will be able to send, receive, and purchase the cryptocurrency afterward.

Tether’s Controversy

While Tether is the largest stablecoin at the moment, it continues to immerse itself in one dispute after the other. The parent company, alongside crypto exchange, BitFinex are under one management via iFinex but continue to come under fire for several cases of fraud and misleading their customers.

The company claims that its stable coins are backed 1:1 to the US Dollars. However, there are doubts regarding that. Recently, the New York State Attorney General’s office revealed that it would be suing Tether and BitFinex for fraud.

According to the details provided by the New York State Attorney General’s office, BitFinex lost $851 million via its payment processor, Crypto Capital. Tether on its part used some of its reserves to cover up BitFinex’s loss.

This implies that after giving BitFinex some of its funds, its USDT stable coins are no longer 100 percent backed by the US Dollar. Tether hasn’t been transparent in its dealings with the crypto community. Up until the revelation by the New York AG, Tether didn’t mention that it was giving out some of its funds to BitFinex and it also didn’t reflect in their market cap.

In November 2017, Tether was alleged hacked, and coins worth $31 million were stolen from the platform. The company has also been accused of manipulating the cryptocurrency market in 2017. Leading to the Bull Run that saw BTC price reach $20,000. The fact that Tether hasn’t been audited by an external body also makes its claim of being 100 percent backed doubtable.

Conclusion

Tether is the largest stablecoin in the cryptocurrency market, and it offers several benefits to exchanges, traders, and investors. However. It has been involved in various controversies over the years, creating doubts over its transparency.

Tether council

Tether’s General Counsel Admits Stablecoin Lacks a 100% USD Backing, But Does a 100%...

In an affidavit filed by Tether’s general counsel, Stuart Hoegner, tether has a 74 percent backing against the USD.
Untitled design

Tether (USDT) is Successful Because Lack of KYC and AML is Their Main Value...

If anything, April was mixed. On one end, prices soared just a day after Fool’s Day clearing important resistance levels and more symbolically, confirming...
Binance Moves USDT pic

Binance Moving Tether (USDT) Funds To A New Cold Wallet Address.

Changpeng Zhao, the maverick leader and founder of the world’s largest cryptocurrency exchange by adjusted volumes, has announced that the on-ramp will...
BitFinex pic

Bitfinex-Tether Saga Continues, Another $850 Million Missing

BitFinex, a virtual currency exchange, and the company behind USDT issuer, Tether Limited, may be in trouble after the NY Office of...
Tether Double Standards pic

Tether (USDT) Selling at $0.99 Despite Damaging $850 Million Cover Up

Another BitFinex-Tether Limited saga, another double standard claim and another summoning. That’s what the sphere has to get accustomed to with the...
Pic

TRON Launches TRC20 Based USDT Offered By Tether with A 20 Million USDT Incentive...

We have known for some time now that Tron would be collaborating with Tether Limited, the company behind, USDT. The partnership would...
Untitled design

Tether (USDT) May Be Controversial But is Preferred By Many

Tether is one of the most controversial cryptocurrencies. Even so, it continues to attract droves of investors, exchanges and traders seeking for...
Tron tether Partnership Controversy

Tron and Tether Partnership: The Most Controversial Duo in the Crypto Community?

Tron made headlines this week with their upcoming partnership with Tether which it is said will bring the company further gains in...
boxmining

Daily: Crypto Dip / Bitcoin Cash Chain Split Bug / Tether prints $50M USDT

https://www.youtube.com/watch?v=s4-o6oqxIkU Crypto markets have taken a beating over the past week due to the SEC's announcement to delay the ruling the CBOE Bitcoin ETF...
28,267FansLike
17,384FollowersFollow
10,000SubscribersSubscribe