Tether is a stablecoin, i.e. a cryptocurrency whose value is linked to that of a fiat currency such as the dollar or the euro. Each Tether token must be worth precisely one unit of fiat currency at all times. Tether is particularly tied to the US dollar. This virtual design therefore allows you to stabilize your crypto holdings without having to resell them.
Tether price (USDT): what is the current price?
Here is the live price of Tether.
The essentials to know about Tether
Creation of the USDT crypto
Tether (USDT), formerly known as “Real Coin”, is a cryptocurrency whose aim is to maintain a constant 1:1 exchange rate with the US dollar. It was founded in July 2014 by Brock Pierce, Craig Sellars and Reeve Collins. Built on top of Mastercoin (Omni), a protocol layer for Bitcoin that introduced the idea of stablecoin to the public in 2012, Tether was one of the first stablecoins created and is now the most traded.
While the tokens themselves operate on a decentralized network, Tether Ltd, located in Hong Kong, is fully responsible for the creation and redemption of USDT tokens, as well as the 1:1 deposit guarantee. USDT is primarily used by crypto exchanges as a substitute for fiat currencies, decreasing the frequency of customer withdrawals.
Tether Ltd, the Hong Kong-based issuer of USDT, has a close relationship with Bitfinex, as both are owned by the same parent company, iFinex Inc.
How does Tether work?
The main characteristic of the USD is that it is always worth one US dollar. Therefore, it is ideal for retaining or transferring value. Bitcoin, Ethereum and other major cryptocurrencies are subject to fluctuations in market supply and demand. By design, USDT is always worth a dollar.
Tether’s parent company claims to have assets equivalent to the market capitalization of USDT – over $70 billion. In other words, for every USDT in circulation, it owns one dollar in liquid cash or investment assets. According to Tether and its Cayman Islands accountants, Tether is a great alternative to dollars for many uses, including cross-border transfers and cryptocurrency exchanges without having to convert them back to dollars.
Crypto USDT: our opinion and prediction for 2022
- USDT Global Mirror Mag Rating: 6/10
Opinion on the project
There are many doubts about the more than $75 billion held by Tether Ltd in collateral to the USDTs issued. The company remains opaque and fails to reassure market regulators. We are not immune to a large-scale scandal with this cryptocurrency and Tether Ltd.
Opinion on the will of the course
The price of Tether remains stable at 1 dollar, which is an advantage for a rapid conversion of your cryptocurrencies.
Medium Term USD Price Prediction
USDT is not immune to a crash if it turns out Tether Ltd doesn’t actually hold the more than $70 billion in assets.
Long Term USD Price Prediction
As long as Tether Ltd keeps its finances unclear, owning Tether remains risky. We don’t know if the company will be able to hold its own if users try to mass withdraw their dollars traded for USDT.
Conclusion – should you invest in crypto Tether?
Tether suffers from regulatory issues and there are several doubts about Tether Ltd that are not yet addressed. In time, the USDC stablecoin of Coinbase, which is a regulated company, could overshadow it.
Useful resources for investing in Tether (USDT)
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