Tether (USDT) Price and Analysis

Tether Overview

Tether (USDT) is a blockchain-based cryptocurrency stablecoin that is meant to mirror the value of the US dollar. The idea behind Tether is that it could function as a stable cryptocurrency that can be used as digital cash. Tether was first launched as RealCoin back in July of 2014 and rebranded as Tether months later in November of 2014. It started trading in February of 2015.

This is essentially what stablecoins are, cryptocurrencies designed to less volatile than other cryptocurrencies because they mimic a stable financial asset. Tether is pegged to the US dollar so that the value of one Tether (1 USDT) is designed to be equal to the price of one dollar. This doesn’t just apply to US dollars either, Tether can also be backed by other fiat currencies. Tether can be backed by the Euro (EURT) and the Japanese Yen (JPYT). They function the same but USDT is a token based on the Bitcoin blockchain, whereas EURT is an Ethereum-based token.

Tether has experienced some controversy in the past. Firstly, the concept behind Tether is one some people struggle to understand, what is the point of it? Why would someone want to hold Tether when they can hold the same amount in USD? This line of reasoning has led some people to believe the purpose is money laundering. Tether has also been the subject of conspiracy theories. Some people doubt that Tether does truly have a 1:1 ratio of dollars to Tether coins. This claim was exacerbated when Tether, the company who operates the Tether cryptocurrency, promised an audit that didn’t materialize. Some point also to an odd correlation between Tether grants and big Bitcoin price movements, suggesting that some shady practices are at play, which even put it under the microscope of the US Justice Department.

Then, in November 2017, Tether was allegedly hacked and $31 million worth of Tether was stolen. This also led to increased mistrust of Tether.

The rebuttal to the conspiracy theories goes like this: Tethers really are backed by fiat by a 1:1 ratio and it’s because of this that they are able to conduct business with so many major players who would not cooperate if something shady was going on. Secondly, Tether is important as a way of holding stable currency on platforms that don’t or won’t allow fiat currency.

Tether is useful in crypto exchanges where there is no fiat option. If you have a certain amount of Bitcoin but Bitcoin starts to become unstable, you could convert your Bitcoin to Tether and hold it until the uncertainty has settled. Tether was also born out of a desire to bridge the gap between fiat currencies and cryptocurrencies. By having a stablecoin with minimal fees that is backed by something already understood by the public, it was thought Tether could help bring more people to crypto.

Latest Tether News

Crypto Payment Provider BitPay Adds USDC, GUSD, Paxos; Tether Is Still Out

The crypto payment provider BitPay has enhanced its payment processing systems to include 3 more stablecoins which are Circle’s USD ...
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Embattled Crypto Exchange Bitfinex Responds to Second Class Action Lawsuit

The embattled crypto exchange Bitfinex replied to a class action lawsuit made against the company and its sister company Tether ...
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New Research Argues Tether Is Not Behind the 2017 Manipulation of Bitcoin’s Price

A paper that was initially released in 2018, which was claiming that Tether (USDT) manipulation was the cause behind the ...
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Tether Calls Explosive Research about Bitcoin Manipulation “Flawed Paper”

The stablecoin Tether (USDT) has been in the news pretty much since Bitcoin (BTC) skyrocketed to its all-time high of ...
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Research: One Buyer on Bitfinex Manipulated Bitcoin’s Price in 2017

Bitcoin (BTC) touched its all-time high of nearly $20,000 in December 2017, and now researchers at the University of Texas ...
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Tether Surpasses Bitcoin and Ethereum in 24h Volume with Large USDT Transactions

Current crypto market sentiments and Tether transaction volumes at various crypto payment processors suggest that Tether (USDT) is becoming one ...
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Crypto Irony? Bitfinex Claims It Is “the Victim of a Fraud” by Crypto Capital

In an effort to set the records straight, the controversial crypto exchange Bitfinex released a statement on Friday, attempting to ...
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What Troubles? Tether Keeps Growing; Especially in Adult, Gambling, Cannabis Sites

The USD-backed stablecoin firm Tether (USDT) has been involved in controversies since last July when it was first alleged for ...
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Class Action Lawsuit against Tether and Bitfinex: Manipulated the Crypto Market

The multi-million dollar firm behind the controversial stablecoin known as Tether (USDT) is back in the news again. This time ...
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Tether Announces its New Stablecoin to Support Chinese Yuan

The popular stablecoin issuer, Tether (USDT), has announced that it plans on launching a new stablecoin, CNH₮, backed by the ...
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