What is tether? (overview & history)

An Ethereum-based cryptocurrency that looks to disrupt the conventional financial system by offering a stable electronic currency. 

This is referred to as a stablecoin because the value of one USDT aims to represent the value of one USD. Stablecoins like Tether are often easy to buy so they provide a better on-ramp to other forms of cryptocurrency.  all across cryptocurrency markets, tether is listed as USDT. 

 Tether assume that each token was backed by a an actual USD at a 1:1 ratio initially,  but it has since been revealed to much controversy that it is not only USD, but also loans to affiliate companies, compounding with USD and other local currencies like the Japanese yen and the Euro, which make up the company’s asset reserves. Tether Limited, the company who released tether, states that customers have no legal claim, right, or guarantee that their USDT can be exchanged for USD.

Tether has since been launched on other blockchain networks, in a bid to create a stable coin that is interoperable with all major blockchains. EOS and Tron are two of the networks, two very wide and popular blockchain platforms for a range of activities and applications.

The first Tether (USDT) digital tokens were launched in late 2014. At the time the CEO announced that the amount of USDT in circulation was 100% backed by its original currency and could be redeemed at any time with no exchange risk. This statement has since been retracted, Tether Limited offers no legal guarantee of customers being able to redeem their tokens for USD. Tether has at no point been able to provide financial verification that they have much or enough reserves to cover the released tokens.

In early 2015, Bitfinex became the first exchange to allow trading of USDT on their trading network. Bitfinex and Tether have a somewhat controversial background, but nothing came of investigations into potential price manipulation between the two. Since then Tether has been listed on almost all other exchanges.

What is Tether?

A stablecoin, meaning its value remains pegged to the USD at a 1:1 ratio. This creates stable value by ending the fluctuations most cryptocurrencies are facing.  Tether exists both on the Omni Layer (built on the Bitcoin blockchain), the Ethereum blockchain as well as EOS and Tron.

The aim of Tether is to be a stable digital currency that can be used across international borders with no worry of your currency being devalued through exchange rates. It can be used in exchange for goods and services wherever it is accepted and always has a value which is equal  to one USD. Transaction times are much faster than local foreign exchanges and it doesn’t cost to send Tether across the globe.