What is Tether (USDT)?
Tether is a blockchain-based cryptocurrency with roots in the USA. It is known as one of the first cryptocurrencies to link itself directly to a fiat currency.

These tokens, officially known as “Realcoins,” are currently traded under the USDT stock code.

Tether is an open source, peer-to-peer blockchain digital currency. Blockchain allows data to be stored in multiple locations in chronological order. This is used to protect the system from being taken over by a single entity. Apart from Tether, many cryptocurrencies also use blockchain.

Tether is, in theory, tied to fiat currency, which is the US dollar. As a result, Tether is referred to as a “stablecoin”. This means that it differs from cryptocurrencies like Bitcoin and Ethereum, whose prices fluctuate significantly and whose value is determined on a more speculative basis. The difference is that the value of Tether is fixed, essentially addressing and eliminating the volatility factor of cryptocurrencies. However, a report from CryptoCompare shows that about 80% of Bitcoin trading is done on Tether, making it a great source of crypto liquidity.

This type of crypto is designed to be strictly dependent on the value of the fiat currency it represents. Initially, each Tether token had to be worth $ 1 at all times. However, this has been the subject of some controversy and support has changed since then. In 2019, Tether announced that it was not 100% backed by fiat currency, with each US Tether token backed close to $ 0.75.

Stablecoin currencies in Tether: USDT (tied to the US dollar), EURT (tied to the euro), CNHT (tied to the Chinese yuan) and XAUT (tied to one ounce of gold per token).

Establishment and History of Tether
Tether’s origins date back to early 2010, when tech experts first began theorizing that Bitcoins could be modified to represent new asset types.

As such, the two groups started working on the idea that the Bitcoin blockchain could be a platform for issuing fiat currencies: a startup called Realcoin and a cryptocurrency exchange Bitfinex. Eventually, the two projects joined forces, which resulted in the establishment of Tether Limited.

Tether started as Realcoin in 2014 and the first tokens were distributed on the Bitcoin network in 2015. It was one of the oldest cryptocurrencies and one of the first successful stablecoins. Not only was it technologically revolutionary, it also had a roster of reputable founders, including Bitcoin Foundation manager Brock Pierce.

See Also
Tether (USDT) To Be The First Stablecoin On The Polkadot Network

However, his success was followed by skepticism and controversy. This is not surprising given the amount of interest the coin received as the first popular stablecoin. Tether had to overcome a few arguments in order to maintain its top position:

Bitfinex: Tether saw an early success by listing on the Bitfinex exchange, but reviews by researchers revealed that the two companies have the same management (both companies have the same CEO and CFO) and the same executive structure.

Bitcoin Pump: Tether was artificially pumped into the cryptocurrency market to create liquidity, and it turned out that Bitcoin was the driving force behind the bull run of up to $ 20,000.

2017 Hack: About $ 31 million of Tether was stolen in the 2017 hack, which forced Tether to create a hard fork.

USD Support Debate: The audit of dollar reserves expected to take place in 2017 has never taken place. Audit needed to make sure its reserves were protected, but Tether instead parted ways with auditors.

Concealing Losses: In 2019, New York Attorney General Letitia James accused Tether’s parent company of concealing $ 850 million in losses by dipping Tether’s money reserves. By 2021, Tether agreed with James to pay $ 85 million and stop trading with the New Yorkers. Despite this, Tether doesn’t admit the mistake and claims she just wants to get away from the issue.

Why Use Tether, Advantages of Tether
Tether stablecoin offers a few advantages that typical cryptocurrencies like Bitcoin or Litecoin do not. Unlike Bitcoin or other altcoins, Tether is not volatile. This means that the value of the coin does not fluctuate according to demand. In most cases, the price of each Tether stablecoin will be equal to $ 1.

Tether can be used in multiple blockchain networks. That is, traders can choose the network they use when sending or receiving Tether.

Tether offers almost all the benefits of a cryptocurrency. For example, you can enjoy competitive transaction fees and enhanced security.

Apart from that, USDT is suitable for a wide variety of use cases; many traders, general

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