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

Tether Confesses It Might Not Be Fully Backed By US Dollars

Tether (USDT) is a cryptocurrency that is supposedly backed by the US dollar at a 1:1 ratio. This means that ...
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Tether Partners with TRON to Broaden its Blockchain Horizon

Touted as the boss in the stablecoin market, Tether has enjoyed widespread attention since its launch in October 2014 (initially ...
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Outside Audit Confirms Circle’s Stablecoin USDC Is Fully Backed by USD as of the End of 2018

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Pablo Escobar’s Estate Launches Cryptocurrency to Impeach President Trump

Cryptocurrencies have certainly been known to attract some strange news stories. Recently, there was a story of a Bitcoin miner ...
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CoinFLEX Joins Other Crypto Exchanges in the Race for Physical Bitcoin Futures

The competition just got a lot fiercer for Intercontinental Exchange (ICE), the parent of the New York Stock Exchange, as ...
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Documents Reportedly Suggest that Tether has the Billions it Claims

Tether, the controversial stablecoin which claims that each token issued is backed by one US dollar, has hit the news ...
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Report: Stablecoins are Stabilizing and Gaining Traction

Cryptocurrencies such as Bitcoin and Ethereum are highly volatile. Which means they could be quite difficult to use in day-to-day ...
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Tether Under Investigation of the US Justice Department for Bitcoin Price Manipulations

Bitcoin has experienced a volatile history, and particularly in the last year. Bitcoin reached new heights in 2017, before falling ...
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Tether Plummets; Are Investors Losing Faith due to Increasing Competition?

For essentially everybody who is interested in the crypto sphere, Tether (USDT) has captured a lot of focus and discussions ...
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Report: Stablecoins Now Worth $3 Billion, Mostly Pegged to USD

A recent report titled "The State Of Stablecoins" was released in late September 2018 to shed some light on the ...
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