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

Report: Stablecoins Pegged to USD Set All-Time High Record for Trading Volume

In its latest report published on May 21, cryptocurrency research firm Diar revealed that the market capitalization for USD stablecoins ...
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Report: Centralized Crypto Exchanges Enjoyed 85% Volume Surge in April

CryptoCompare, a leading cryptocurrency data analysis company, has released its Exchange Review for April 2019, highlighting some positive changes in ...
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Embattled Crypto Exchange Bitfinex Unravels its New Billion Dollar Token LEO

With exceeding joy for completing yet another milestone (and diverting some attention from its recent $850M cover-up controversy), the Hong ...
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Unearthed Bitfinex’s Document Details $1 Billon Token Sale Dubbed “LEO”

iFinex, the parent company to Tether and the controversial cryptocurrency exchange Bitfinex, is planning an initial exchange offering (IEO) with ...
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Fablecoin: Tether Finally Fully Discloses that USDT Is Only 74% Backed by USD

Tether (USDT) is only 74% backed by cash and securities as stated in the affidavit filed with the Supreme Court ...
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Almost $185M in BTC and ETH Moved from Bitfinex’s Cold Wallets after Alleged $850M Fraud

The cryptocurrency exchange Bitfinex is in hot water after it was revealed that nearly $185 million in Bitcoin and Ethereum ...
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NY Attorney General Wants Bitfinex and Tether Out of New York after $850M Cover-Up

New York’s Attorney General Letitia James has accused the cryptocurrency exchange Bitfinex of participating in a crypto cover-up. The associated ...
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The TRON Network Welcomes Tether (USDT) to its Blockchain

The TRON network is unarguably one of the world-leading crypto platforms today. The TRON blockchain was created by the China-based ...
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Featured: The Legal Minefield of Stablecoins

Stablecoins are a relatively new form of cryptocurrency and are often regarded as a solution to the instability of other ...
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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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