The price Tether today is 1.00 USD, and the trading volume in 24 hours - 92,722,307,336 USD. The crypto asset has grown by 0.02% over the day. Currently, the coin’s market capitalization is 61,817,378,735 USD, and has 61,810,332,357 coins in circulation with the max supply of 64,469,737,786 coins USDT.
What is a Tether (USDT)?
USDT is a stablecoin (a cryptocurrency with a stable value) that reflects the price of the US dollar issued by the Hong Kong company Tether. The binding of the token to the US dollar is achieved by maintaining the amount of dollar reserves equal to the amount of USDT in circulation.
The developer of the first and most widely used stablecoin, Tether Limited , is a company that manages a platform that issues blockchain-based assets tied to the price of public money.
Today, Tether supports four stablecoins: the US dollar (USDT), the Chinese yuan (CNHT) and the Euro (EURT), as well as a stablecoin backed by 1 ounce of gold (XAUT).
The launch of USDT took place in 2014, and the company's idea was to make public money more compatible with new crypto assets that were traded around the clock and seven days a week in an active global market.
Each USDT token is subject to exchange for the corresponding US dollar held by Tether Limited. It is assumed that the total value of all USDT is equal to the company's reserves.
Once USDT is first released, it can be transferred, stored, and spent by various resources (exchanges, wallets, financial services companies) and individual traders seeking to avoid the sometimes extreme volatility of cryptocurrency markets.
Today, stablecoins represent a new class of crypto assets that are beginning to find uses outside the world of trading, including in sectors such as traditional cross-border payments.
As of 2020, USDT remains the largest and most widely used stablecoin.
However, this concept has been adopted by the largest companies in the world. For example, in 2019, Facebook announced that it was trying to launch its own stable coin called Libra.
How does Tether work?
Tether Limited accepts fiat deposits and withdrawals on behalf of customers and is responsible for issuing and destroying Tether tokens in accordance with the reserves they manage.
- Tether on Bitcoin
Tether was originally launched and released on the Bitcoin blockchain via the Omni Layer Protocol, a platform used to create and trade digital assets on top of Bitcoin.
This technology allows you to issue and burn USDT tokens depending on their quantity. The distribution of Tethers can also be monitored through the Protocol.
The Tether registry is stored on the Bitcoin blockchain thanks to Omni, and Omni Explorer allows users to view their confirmed transactions there. As of 2020, USDT is also available as assets on Liquid, the side chain of the MTC.
- Tether on other blockchains
Tether is now available on other blockchains, including Ethereum( ETH), Tron (TRX), and EOSIO (EOS), which allow new assets to be created natively on their blockchains.
To date, the largest USDT market is Ethereum.
What makes Tether unique?
A unique feature of USDT is that Tether guarantees that its value will remain pegged to the US dollar. According to the company's statement, whenever it issues new USDT tokens, it allocates the same amount in US dollars from its reserves, thereby ensuring that USDT is fully backed by cash and cash equivalents.
It is known that the high volatility of cryptocurrency markets means that cryptocurrencies can rise or fall by 10-20% in a single day, making them unstable as a means of saving. USDT, on the other hand, is protected from these fluctuations.
This property makes USDT a safe haven for crypto investors: during periods of high volatility, they can place Tether in their portfolios, without having to fully cash out dollars. In addition, USDT provides an easy way to transfer US dollar equivalent transactions between regions, countries, and even continents via blockchain, without having to rely on a slow and expensive intermediary such as a Bank or financial service provider.
However, there has been a number of controversies over the years concerning the validity of Tether's claims about their us dollar reserves, which has at times disrupted the USDT price, which at one point fell to $ 0.88. Many expressed concern about the fact that Tether's reserves were never fully verified by an independent third party.of your asset, or store your XRP in a cold or hot wallet.
- To own your crypto assets, you need to manage your own private keys.
- Ledger hardware wallets make private key management easy and secure.
- Each unique 24-word recovery phrase creates a new set of private keys.
- Make sure you secure your 24-word recovery phrase properly.