Tether USDT is a type of cryptocurrency known as a stablecoin that seeks to maintain its value equal to the value of the US dollar (USD). It is important to note that the concept of a stablecoin was developed to ensure stability in the very volatile world of cryptocurrencies.
The formation of the Tether company
The company was named Tether from the company Tether Ltd., registered in Hong Kong. Behind this name was the concept of “linking” the value of the cryptocurrency to the value of the US dollar.
In 2017, the project was officially launched, and USDT tokens were released to the market. Their distribution took place on the basis of the Bitcoin blockchain using the Omni Layer protocol. This protocol ensured the creation and management of USDT tokens, while maintaining the necessary security and transparency.
Scandals at Tether
Tether, like many other cryptocurrencies, has not been without its scandals. Questions were raised around the company’s claims that each USDT token is backed by a US dollar held in reserve by Tether Ltd. Many critics and observers in the field of cryptocurrencies have expressed doubts about these statements, as independent audits that could confirm or refute these statements have not been conducted.
Another scandal came in 2019, when the New York Attorney General accused Tether Ltd. and the Bitfinex cryptocurrency exchange in the loss of $ 850 million and subsequent attempts to hide this loss from users and regulators. As a result of this case, which was settled in February 2021, Tether Ltd. he was obliged to pay a fine of $18.5 million and provide quarterly reports on his reserves.
Reliability and convenience of Tether
However, despite all these problems and shortcomings, Tether remains one of the most popular stablecoins on the cryptocurrency market and occupies high positions in terms of daily transactions. Many cryptocurrency traders and investors use Tether as a “safety zone” to temporarily store their funds during market volatility.
In addition to offering stability and security, Tether also attracts users with the ability to simplify the transition from cryptocurrencies to traditional currencies and vice versa. This facilitates the use of cryptocurrencies for daily transactions, including purchases of goods and services, and also simplifies the process of investing in cryptocurrency.
Like a huge number of other cryptocurrencies, Tether was able to bring its unique value to the cryptocurrency ecosystem. It allowed cryptocurrencies to become more accessible to ordinary users, allowing them to use a cryptocurrency that is linked to the US dollar to ensure stability and predictability.
Since it was founded, Tether has faced a number of challenges and problems. However, the company continues to work to provide a reliable, transparent and secure stablecoin that can facilitate the use of cryptocurrencies for millions of people around the world.
