What is Tether (USDT)?
Tether (USDT) is a form of cryptocurrency issued on the bitcoin blockchain. USDT belongs to the special cryptocurrency category called stablecoin, a type of coins with a stable value. The price of Tether (USDT) depends on the US dollar price, with one dollar equal to one USDT. Tether was launched by a Hong Kong company in 2014 controlled by Bitfinex.
Tether is the most popular stablecoin and the first in the ecosystem. Its aim is to keep cryptocurrency valuations stable.
Price of Tether (USDT)
The price of Tether (USDT) today is USD 1.00. Its trading volume in the last 24 hours is $85,663,900,513 USD. The live market cap of Tether is $62,669,612,109 USD.
Top Exchanges for Trading in Tether (USDT)
- Huobi Global
- Coinbase Exchange
Key Points About Tether
- Tether is a type of stablecoin cryptocurrency. It aims to keep cryptocurrency valuations stable.
- USDT is the best cryptocurrency for investors who want to avoid any type of volatility.
- The New York Attorney General accused Tether’s parent company of hiding an $850 million loss in April 2019. Two years later, Bitfinex and Tether came to a settlement, with both companies agreeing to pay $18.5 million in fines and for the next two years provide quarterly reports that would detail Tether’s US Dollar reserves.
- Tether is used and traded under the USDT symbol.
Who is the founder of Tether?
The cryptocurrency was launched by Brock Pierce, Reeve Collins and Craig Sellars in 2014.
Entrepreneur Brock Pierce has co-founded several high-profile projects in the crypto and entertainment industries, including venture capital firm Blockchain Capital and Block.one, the company behind cryptocurrency EOS.
Former Tether CEO Reeve Collins co-founded online ad network Traffic Marketplace, entertainment studio RedLever, gambling website Pala Interactive and AdTech SmartMedia Technologies.
Craig Sellars, a member of the Omni Foundation, has worked within crypto companies Bitfinex, Factom, Synereo and the MaidSafe Foundation.
How does Tether maintain a 1:1 USD peg?
The Tether peg is maintained by a one-to-one collateral ratio. Every USDT in circulation is backed by fiat in their reserves. Tether releases its balance on its transparency page and acts as the third-party custodian for the fiat currency backing USDT.
The process to fiat reverse by Tether
The purchase of Tether deposits fiat currency into Tether Limited’s bank account. When one USDT thus enters circulation, one dollar is deposited. The user can then transfer, exchange and store this USDT.
If they later choose to redeem it into fiat currency through Tether, Tether Limited destroys the USDT as it sends the dollar equivalent to user’s bank account.
What is the Purpose of Tether?
Tether allows you to convert your fiat US dollars into blockchain stablecoins – and expedite the transaction of other cryptocurrencies.
Tether can act as the alternative for deposit or withdrawal, and is a popular trading pair in major exchanges. You can use it for calculating profit or loss. It is convenient for users to move their USD, allowing them to store money seamlessly between wallets and exchanges.
What can I do after I buy USDT tokens?
- Sell/hold it
- Trade it
- Send it
- Spend it
- Donate it
Tether (USDT) Coins in Circulation
The total amount of tokens is limited by actual company cash. In September 2020, there were 14.4 billion USDT tokens circulating in the market; in theory these are backed by $14.6 billion in assets.
How is the Tether network secured?
There is no Tether blockchain. It works on the other top cryptocurrency blockchains:
- Bitcoin Cash
Tether can also use its hashing algorithm to make them a more secure network.
Where can you buy USDT?
There are a large number of trading sites or wallets that can help you to buy USDT. The daily volume of Tether is exceeded by Bitcoin.
Most Popular Exchanges for Tether Trading
- Huobi Global
You can easily buy or sell the USDT cryptocurrency with the help of trading sites. These sites allow you to buy or sell quickly.