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Tether USDT
$1.00 0.038%

What is Tether

What is Tether

History

Tether was launched in 2014 by Brock Pierce, Reeve Collins, and Craig Sellars. Originally named "Realcoin," it was rebranded as Tether in November 2014. The primary goal of Tether was to combine the benefits of cryptocurrency, such as transparency and security, with the stability of fiat currencies. Tether's history has been marked by controversy, particularly surrounding its claims of full fiat backing and its relationship with the cryptocurrency exchange Bitfinex. These controversies have led to significant scrutiny and legal challenges over the years.

Creators and developers

Tether was developed by a team that includes prominent figures in the cryptocurrency world. Brock Pierce is a well-known entrepreneur in the blockchain space, Reeve Collins has been involved in multiple tech ventures, and Craig Sellars is a developer with experience in blockchain technologies. Tether Limited, the company behind Tether, operates under the umbrella of iFinex Inc., which also owns Bitfinex. The close ties between Tether and Bitfinex have been the subject of much debate and investigation.

Technology

Tether initially operated on the Bitcoin blockchain via the Omni Layer protocol, which allows for the creation of custom digital assets. Over time, Tether expanded to other blockchains, including Ethereum (as an ERC-20 token), Tron, EOS, Algorand, and others. This multi-chain support ensures that Tether can be used across a wide range of platforms and applications. Tether's key feature is its stable value, achieved by pegging each USDT token to $1 USD. This is intended to make it less volatile than other cryptocurrencies.

Mining and issuance

Tether is not mined like traditional cryptocurrencies. Instead, it is issued by Tether Limited. The company claims that every USDT token is backed 1:1 by a corresponding fiat currency held in reserve, primarily US dollars. New Tether tokens are minted when investors deposit fiat currency with Tether Limited, and an equivalent amount of USDT is issued. Conversely, USDT is destroyed when users redeem their tokens for fiat.

Networks and support

Tether is supported on multiple blockchain networks, including Bitcoin (Omni Layer), Ethereum (ERC-20), Tron (TRC-20), EOS, and more. This cross-chain compatibility allows Tether to be used in various decentralized applications (dApps), exchanges, and platforms. Tether's wide adoption is one of its strengths, as it is integrated into most major cryptocurrency exchanges and platforms, facilitating seamless trading and transfers.

Applications and use cases

Tether is primarily used as a stable store of value and a medium of exchange in the cryptocurrency ecosystem. It is widely used on exchanges as a means to hedge against volatility, providing liquidity in trading pairs, and enabling easier conversion to fiat currencies. Additionally, Tether is utilized in decentralized finance (DeFi) protocols, where its stability is crucial for lending, borrowing, and other financial services. Its stable value also makes it a popular choice for remittances and cross-border payments.

Popularity and market capitalization

Tether is one of the most popular stablecoins and ranks among the top cryptocurrencies by market capitalization. As of 2024, its market capitalization exceeds $80 billion, making it one of the most widely used stablecoins in the world. Tether's popularity has grown significantly over the years, driven by the increasing demand for a stable digital asset in the volatile crypto market.

Controversies and challenges

Tether has faced significant controversy, particularly regarding its claims of full fiat backing. In 2021, Tether reached a settlement with the New York Attorney General's office, agreeing to provide regular updates on its reserves. This settlement was part of a broader investigation into Tether's financial practices. Despite these challenges, Tether has maintained its position as a leading stablecoin, although it remains under scrutiny.

Partnerships and integrations

Tether has formed numerous partnerships and integrations across the cryptocurrency industry. It is supported by most major exchanges, including Binance, Bitfinex, and Kraken, and is integrated into various wallets, payment platforms, and DeFi applications. These partnerships have helped solidify Tether's role as a key stablecoin in the global crypto ecosystem.

Community and media

Tether's community is large and active, with discussions taking place across social media platforms, forums, and dedicated channels. However, the community is often divided due to the controversies surrounding the project. Tether is frequently mentioned in the media, particularly in discussions about stablecoins, market stability, and regulatory issues.

Legal status and regulation

Tether operates in a complex regulatory environment, with varying levels of acceptance and scrutiny across different jurisdictions. The 2021 settlement with the New York Attorney General marked a significant moment in Tether's regulatory history, forcing the company to provide greater transparency regarding its reserves. Tether's legal status continues to evolve as regulators worldwide grapple with the rise of stablecoins and their implications for the financial system.

Examples of usage

Tether is widely used across the cryptocurrency market. It is a staple on exchanges, used in trading pairs, and often serves as a refuge during periods of high volatility. In DeFi, Tether is used in lending and borrowing platforms, liquidity pools, and as collateral for stablecoin loans. Additionally, Tether is employed in cross-border transactions, offering a stable and fast alternative to traditional banking channels.

Supported Networks

Tangem Wallet supports Tether on these networks

  • Ethereum
  • BNB Smart Chain
  • Solana
  • Ton
  • Tron
  • Avalanche C-Chain
  • Polygon POS
  • Cronos
  • Fantom
  • Kava EVM
  • Moonbeam
  • Shibarium
  • Aurora
  • Moonriver
  • zkSync
  • Arbitrum
  • Optimism
  • zkEVM
  • Gnosis Chain

Tether official links

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How to buy Tether in Tangem Wallet.

The Tangem mobile app lets you buy cryptocurrency directly using a bank card and choose the best exchange rate.

1
Open the Tangem app by scanning the wallet and entering your access code or biometrics.
2
Select the desired cryptocurrency on the homepage and select "Buy."
3
You will be redirected to an on-ramp service offering fiat to crypto exchanges.

Tether FAQ

Tether (USDT) is one of the most prominent stablecoins in the cryptocurrency market, designed to maintain a stable value by being pegged to traditional fiat currencies, primarily the US dollar.
  • Owning cryptocurrency can be important for several reasons: it provides a decentralized way to store and transfer value, offers potential for investment growth, enables participation in emerging financial technologies, and can be used for secure and private transactions.
  • A cryptocurrency wallet is a tool or device that allows you to store, manage, and use your cryptocurrency. It keeps your private keys secure and enables you to interact with various blockchain networks, including Bitcoin and Ethereum.
  • When choosing a cryptocurrency wallet, consider factors such as security, ease of use, and cryptocurrencies supported. Also determine whether you prefer a hardware or software wallets. Research reviews and compare features to find the best option for your needs.
  • Tether (USDT) is a stablecoin designed to maintain a 1:1 peg with the US dollar. Tether achieves this by holding reserves equivalent to the amount of USDT in circulation, which are meant to back each token with real-world assets like cash, cash equivalents, or other financial instruments. This mechanism ensures that the value of one USDT remains consistently close to one USD. The company behind Tether claims to regularly audit these reserves to provide transparency, although there have been controversies and debates about the adequacy and transparency of these reserves.
  • Tether plays a crucial role in the cryptocurrency market as a bridge between volatile cryptocurrencies and fiat currencies. Its stability makes it a preferred choice for traders who want to quickly move in and out of positions without converting to traditional currency, which can be time-consuming and expensive. Tether also provides liquidity and stability during periods of high market volatility, allowing traders to hedge against price fluctuations. As one of the most widely used stablecoins, Tether often has the highest daily trading volume, reflecting its significant role in the crypto ecosystem.
  • While Tether offers stability, it also comes with risks, particularly concerning the transparency of its reserves. Critics argue that if Tether's reserves are not fully backed or if there are discrepancies in their audits, it could lead to a loss of confidence in USDT. Given Tether's widespread use in the market, any significant loss of confidence could trigger a market-wide sell-off, causing disruptions in trading and potentially leading to liquidity crises. Additionally, regulatory scrutiny of stablecoins could impact Tether's operations, adding another layer of risk for users.
  • Tether is the oldest and most widely adopted stablecoin, primarily used for trading and liquidity provision across various cryptocurrency exchanges. However, compared to other stablecoins like USDC (USD Coin) or DAI, Tether has faced more scrutiny regarding its transparency and reserve management. USDC, issued by regulated financial institutions, offers greater transparency and regular audits, making it more attractive to institutional investors. DAI, on the other hand, is a decentralized stablecoin backed by crypto collateral rather than fiat, appealing to users who prefer a decentralized financial system. Despite these differences, Tether remains dominant in terms of market capitalization and trading volume, though its competitors are gaining traction.

Why choose Tether wallet with Tangem.

Private. No registration and KYC required to use the app. We don't track your data.

Secure. Your private keys are encrypted and never leave your device. Only you have control over your funds.

Innovative Design Options. Choose from a variety of elegant designs, including unique co-branded editions and our innovative ring-form factor wallet, ensuring both style and functionality.

24/7 Online Support. Fast support for your needs. Live chat and email support for customers from all over the globe.

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