Tether: a stable cryptocurrency
Tether (USDT) is a cryptocurrency designed to maintain the value of 1 United States dollar. This makes Tether a stablecoin enabling smooth and global crypto trading. Tether is a widely popular currency. According to estimations, over half of all BTC trading happened through USDT in 2021. With the help of Tether, investors can fight the high crypto volatility and trade at a low cost. But what makes this currency differ from other most-traded currencies out there?
The compact history of Tether
Tether’s history started in 2014 when it was launched under the name of RealCoin. The rebranding to Tether happened swiftly. Within a few months, the company behind the stablecoin was renamed Tether Ltd. To this day, this company remains responsible for maintaining the necessary reserves supporting the value of USDT. Tether Limited is a Hong Kong-based company owned by the same owners of the popular crypto exchange Bitfinex. Tether (like many fellow cryptocurrencies) has been subject to some questionable media attention due to hacking attempts and obscurities regarding the handling of the company’s finances during its years in the market.
Tether software trivia
As the primary function of Tether is to remain at a $1 value, this requires the project to maintain $1.00 in reserves for each tether issued. What comes to the software basis of this project, Tether is hosted on Ethereum and Bitcoin blockchains, among some other blockchains as well. Despite being built on these proof of work blockchains, Tether cannot be mined, and the only way to acquire this cryptocurrency is through purchasing it.
Tether, the token
Tether tokens are the native tokens of the Tether network and trade under the ticker USDT. The tokens are very popular for their stable value, and most crypto traders are more or less familiar with them. As mentioned above, the token circulation is backed by a reserve, fixing this coin's price to 1.00$. The value of Tether has risen significantly over the years. The market capitalization of the cryptocurrency belongs to the absolute top of the crypto market. However, Tether is usually traded for purposes other than many more volatile currencies; it functions as a great medium of exchange for its reliable value. In practice, Tether functions as a bridge in between fiat money and cryptocurrencies. For example, traders can quickly sell their altcoins for USDT.
The future of Tether
As Tether has conquered a rock-solid foundation to operate from, it is expected that big crowds of crypto investors will continue purchasing Tether to bridge their fiat currencies to cryptocurrency purchases. Of course, as a stablecoin, Tether might not be attractive as an investment instrument like many other cryptocurrencies, but the project remains essential and relevant in crypto. After all, Tether is one of the most traded cryptocurrencies.