Tether which goes by the ticker code USDT is a cryptocurrency which is in the stablecoin category. That means that this token is supposed to be backed by legitimate assets like the US Dollar, loans and precious metals unlike the majority of cryptocurrencies out there which really aren’t backed by much. With this fiat backing its supposed to make it at par with the US Dollar at a 1:1 ratio. Tether is used to keep the value of crypto currencies stable.
Source: Coindesk
Tether initially debuted in 2014. It originally went by the name “Realcoin” but, was rebranded to Tether so it would not be categorized as an altcoin and viewed in a more serious light. USDT was first adopted by the Bitfinex crypto exchange and both maintian close business ties. It is currently available on major exchanges like Coinbase, Binance, and Kraken. The illusion of stability is what has allowed it to grow and turn into a widely known name. Tether claims that for all of its tokens in circulation there are bank reserves of fiat currency which mach the amount of tokens in circulation.
Source: Coingeek
Tether Recent Revelations
Although Tether has a good reputation and is portrayed as a stable coin there is another side which has come to light in recent times. On March 31st they revealed that less than 4% of their assets are in actual cash. While the rest is in loans, bonds, precious metals and other tokens. This is a blow to the illusion that it is actually pegged to the US Dollar at 1 to 1. It also brings more doubt to the Crypto market in general since it is so widely integrated into the market. People and markets are even more vulnerable to this type of news now that the market has been down for a few weeks now.
