Be Careful Before Choosing a Stablecoin – Here Are Tether’s (USDT) + and – to Help You Make Your Choice

Tether is a stablecoin, or a cryptocurrency whose value is linked to that of a fiat currency such as the dollar or the euro. Each Tether token must be worth exactly one unit of fiat currency at all times. Tether is particularly tied to the US dollar. This virtual currency then allows you to stabilize your crypto assets without having to resell them.

Tether Price (USDT): What is the current price?

Here is the live price of Tether.

The essentials to know about Tether

Creation of the USDT cryptocurrency

Tether (USDT), formerly known as “Real Coin”, is a cryptocurrency that aims to maintain a constant 1: 1 exchange rate with the US dollar. It was founded in July 2014 by Brock Pierce, Craig Sellars and Reeve Collins. Built on Mastercoin (Omni), a protocol layer for Bitcoin that introduced the idea of ​​stablecoins to the public in 2012, Tether was one of the first stablecoins created and is now the most traded.

While the tokens themselves operate on a decentralized network, Hong Kong-based Tether Ltd is fully responsible for the creation and redemption of USDT tokens, as well as the 1: 1 deposit guarantee. USDT is mainly used by cryptocurrency exchanges as a substitute for fiat currencies, decreasing the frequency of customer withdrawals.

Tether Ltd, the Hong Kong-based issuer of USDT, has a close relationship with Bitfinex, as both are owned by the same parent company, iFinex Inc.

How does Tether work?

The main feature of the USD is that it is always worth one US dollar. Therefore, it is ideal for storing or transferring value. Bitcoin, Ethereum and other major cryptocurrencies are subject to fluctuations in the supply and demand of the market. By design, USDT is always worth a dollar.

Tether’s parent company claims it has assets equivalent to USDT’s market capitalization – over $ 70 billion. In other words, for every USDT in circulation, it owns one dollar of cash or liquid investment assets. According to Tether and its Cayman Islands accountants, Tether is a great alternative to dollars for many uses, including cross-border transfers and cryptocurrency exchanges without having to convert them back to dollars.

Crypto USDT: our opinion and forecast for 2022

  • USDT Global Mirror Mag Rating: 6/10

Opinion on the project

There are many doubts about the over $ 75 billion held by Tether Ltd as collateral for the USDT issued. The company remains opaque and fails to reassure market regulators. We are not immune from a large-scale scandal with this cryptocurrency and Tether Ltd.

Price volatility warning

Tether’s price remains stable at $ 1, which is a plus for a quick conversion of your cryptocurrencies.

Medium-term USD price prediction

USDT is not immune to a crash if it turns out that Tether Ltd does not actually hold more than $ 70 billion in assets.

Long-term USD price prediction

As long as Tether Ltd keeps its finances unclear, owning Tether will remain risky. We don’t know if the company will be able to hold its position if users try to bulk withdraw their USDT-traded dollars.

Conclusion: should you invest in crypto Tether?

Tether suffers from regulatory issues and there are several doubts about Tether Ltd that are still unresolved. Over time, Coinbase’s USDC stablecoin, which is a regulated company, could overshadow it.

Useful resources for investing in Tether (USDT)

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