Tether price in USD: |
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$1.001 |
Tether price in USD: |
---|
$1.001 |
Tether (USDT) is a stablecoin (a type of cryptocurrency) pegged to the U.S. dollar and backed by “100% of Tether’s reserves,” according to the company’s website. These claims are often questioned by the crypto community.
Tether is owned by iFinex, the Hong Kong-listed company that also owns the BitFinex crypto exchange.
Tether was launched as RealCoin in July 2014 and rebranded to Tether in November 2014. It began trading in February 2015 under the symbol USDT.
When a user deposits fiat currency into Tether’s reserve, selling fiat to buy USDT, Tether issues the corresponding digital amount in tokens. USDT can then be sent, stored or exchanged.
If a user deposits $100 into Tether’s reserve, they will receive 100 Tether tokens at 1:1 parity with the US dollar. USDT is voided and withdrawn from circulation when users exchange the tokens for fiat currency.
Tether is transferred through a blockchain like many other digital currencies.
Tether is integrated into several blockchains, which has helped it become widely available. Here are the blockchain networks that currently support Tether:
Tether belongs to the category of so-called “stablecoins,” which aim to keep the price of their coins fixed, most often by pegging it to the price of a traditional currency like the U.S. dollar. (Tether also issues tokens pegged to the euro, the offshore Chinese yuan, and gold, but none of these are anything more than a fraction of the market cap of USDT tokens pegged to the U.S. dollar.)
This peg to traditional currencies ensures that stablecoins are not influenced by the volatility of crypto markets, as is the case with more speculative digital assets such as Bitcoin.
Tether updates a daily breakdown of its reserves on its website. As of May 12, 2022, Tether reported holding 83.74% of its reserves in cash, cash equivalents, short-term deposits and commercial paper, 4.61% in corporate bonds, 5.27% in secured loans to unrelated parties and 6.38% in other investments, including digital tokens.
The stable value encourages the use of stablecoins as a medium of exchange, similar to conventional money.
In 2019, New York Attorney General Leticia James filed a lawsuit against iFinex alleging that the cryptocurrency exchange Bitfinex failed to secure a reliable fiat banking relationship, therefore entrusting $1 billion to Panamanian payment processing firm Crypto Capital Corp and covering $850 million in losses missing since mid-2018.
The funds were allegedly commingled with corporate and customer deposits and a contract was allegedly never signed with Crypto Capital. The indictment alleges that Crypto Capital Corp lost or stole the money, and Bitfinex and Tether Limited executives failed to recover the $850 million in question. iFinex, Bitfinex and Tether Limited, allegedly used Tether to cover up the shortfall.
Tether is called a stablecoin or stablecoin because it was originally designed to always be worth $1.00, maintaining a reserve of $1.00 for every USDT issued.
On April 30, 2019, Tether Limited’s attorney stated that each USDT is backed by only $0.74 in cash equivalents. Despite all the criticism directed at the asset, Tether claims to be transparent about its reserves.
With USDT, you can in theory switch to a coin that has a stable value like the US dollar – even when you’re on an exchange that doesn’t deal in fiat currencies. Many exchanges also offer USDT as a trading pair, thereby allowing you to buy other cryptocurrencies with a token that acts like the US dollar. This is very useful (especially when the price of Bitcoin is so volatile).
After long legal battles, iFinex has successfully refuted the claims of stolen funds and concealment.
Bitfinex claimed that it had repaid the loans in full with interest to Tether Limited by February 5, 2021 and settled the legal dispute with the New York Attorney General’s Office by paying $18.5 million.
There are numerous cryptocurrency exchanges and marketplaces that range from easy-to-use systems to complex dashboards for advanced traders.
Because the USDT is so popular, you will be able to purchase the token on most cryptocurrency exchanges, but it is advisable to stick to a few of the more popular exchanges such as Binance, Kraken, Coinbase, etc. Different platforms come with different fees, security measures, and may include other features, so it’s a good idea to do your research before signing up.
Start with account registration, which is completely free on the above platforms. For added security, 2FA – two-factor authentication is also enabled. This way, you and your device are the only ones who can grant access to the account.
You are then taken through a KYC process, which is providing personal information – ID/passport/driving license details, proof of address (e.g. bank statement or utility bill).
After completing these steps, you are ready to buy, sell and trade USDT, as well as take advantage of various services such as steaming.
Once your account has been registered and verified, you need to fund the account to start taking advantage of the platform’s buying and trading services.
The main deposit options are:
On Binance, the world’s largest cryptocurrency exchange, deposits are absolutely free.
Top stablecoin issuer Tether recently released an influx of 1.845 billion USDT on the Ethereum blockchain, possibly fueling Bitcoin’s sharp price increase to a new all-time high.
Tether (USDT) is increasingly focusing on markets in Europe, the Middle East, and Africa due to regulatory pressures in the United States, with its supply surpassing $120 billion.
Tether is set to launch its dirham-pegged stablecoin on The Open Network (TON) blockchain.
Stablecoin issuer Tether reported $2.5 billion in profit for the third quarter, raising its cumulative profit for the year to $7.7 billion.