rope (USDT) It is a cryptocurrency distributed by Tether Limited. Specifically, it is a stablecoin as it is designed to always be worth $1. In other words, Tether is a dollar-denominated cryptocurrency.
The peg of the USDT token to the US dollar is achieved by maintaining dollar reserves in the form of: treasury bills, cash, debt securities, credit deposits, etc. The amount put into reserve is equal to the USD value of the total USDT tokens in circulation.
If you want to get USDT tokens, buy them on Young Platform, a reliable and easy-to-use Italian exchange.
How was Tether (USDT) born?
Reve Collins, Craig Sellars, and Brock Pierce launched USDT in 2014, under the name Realcoin.
For the first two years, Reeve Collins was the CEO of Tether. Prior to that, he co-founded other projects such as Traffic Marketplace, RedLever and Pala Interactive. In 2020, Reve started running SmarMedia Technologies, an advertising and marketing technology company.
For more than six years, Craig Cellars has been a member of the Omni Foundation. The Omni protocol allows you to create and exchange currencies and properties based on smart contracts built on the Bitcoin blockchain. Sellars has also worked for other cryptocurrency organizations and companies such as MaidSafe Foundation, Factom, Synereo, and Bitfinex.
Pierce is a famous entrepreneur who has co-founded many high profile projects in the entertainment industry and in the cryptocurrency world. He co-founded Blockchain Capital in 2013, which raised more than 80 million in funding in 2017. He soon became the director of a non-profit organization “Bitcoin Foundation” to help promote and improve Bitcoin. He also co-founded Block.one, the company that supports EOS cryptocurrency.
How does Tether work?
Tether Limited maintains a reserve of USDT token and also facilitates withdrawals and deposits in fiat currency (Euro, Dollar, etc.). Then Tether Limited deals with mining and destroying the USDT tokens to stabilize their value. Crypto Tether hosts the blockchains of Ethereum, Bitcoin, and others.
The unique feature of this crypto is that Tether ensures that its value remains pegged to the US dollar. Each time Tether issues a new token, to ensure that it is fully backed by cash equivalents, it allocates the same amount of US dollars to its reserves.
This aspect protects the price of Tether from fluctuations, unlike other cryptocurrencies that experience sharp price rises and falls. It also makes USDT a safe choice during times of extreme volatility.
USDT makes it easy to conduct dollar equivalent transactions between countries through the blockchain. Thus eliminating the need to rely on expensive and inefficient intermediaries such as financial institutions and banks.
Now let’s see what are the main uses of the Tether cryptocurrency (USDT):
- buyingUSDT users can easily use fiat currencies to buy USDT on top exchanges, and then use Tether to buy other cryptocurrencies at a discount. The process is really fast.
- loan: Lenders can use USDT without risking losses due to the unpredictability of Tether’s price in the market, as is the case with all other cryptocurrencies.
- cross-border payments: USDT users have the ability to transfer money anywhere in the world in minutes and securely.
Stable coins give users a huge advantage of avoiding the risks associated with the volatility of the cryptocurrency market. Since the price of Tether is frozen, you cannot risk losses due to the sudden price drop. At the same time, you will not incur any transaction fees on cryptocurrencies.