Tether (USDT) is a stablecoin - a type of cryptocurrency created with the goal of maintaining a stable value over time. USDT is what’s known as a fiat collateralized stablecoin; its price is pegged 1-1 to the U.S. dollar.
USDT is used by cryptocurrency traders as a way to purchase other cryptocurrencies. This helps traders avoid the expensive and slow method of transferring fiat currencies to exchanges, and then using that fiat currency to buy crypto directly. In fact, for many cryptocurrencies, the most liquid markets are trading pairs with USDT.
Tether was first created in 2014 and called “Realcoin”, with the stated goal of offering people a blockchain-based coin with high liquidity and low volatility. Tether Operations Ltd., the company that created and maintains Tether, is part of iFinex Inc, which is also the parent company of Bitfinex, a crypto exchange.
Tether Ltd., the company that created and maintains Tether, claims that is it 100% backed by actual assets in the platform’s reserve bank accounts. Detractors have pointed to inadequate reserve disclosures by Tether Ltd., as well as a lawsuit filed by the New York Attorney General’s office that accused Bitfinex of using reserves from Tether to cover up $850 million in losses stemming from payment processor Crypto Capital Corp. Bitfinex and Tether subsequently filed an affidavit stating that Tether was backed by 74% cash and equivalents, with the remaining backing existing as equity in parent company iFinex.
The current price of Tether is $0.9998 US dollars. This price is down -0.02% from yesterday