Some Unknown Facts About Tether
You must have come across many cryptocurrencies, including Bitcoin, the most popular among all. Apart from it, there are also several altcoins, which followed after the success of Bitcoin. In this article, we will discuss Tether.
Introducing Tether
It is a blockchain-based cryptocurrency, whose crypto coins are supported by an equal number of traditional fiat currencies including Japanese Yen, Dollar or Euro that are kept in the selected bank accounts.
Tether tokens are traded under USDT. If you are not abreast of blockchain crypto news, then let us tell you that Tether is a stablecoins, a new variety of cryptocurrencies.
In contrary to Ethereum and Bitcoin, where it is possibilities of wide swings in their prices, Tether does the opposite by having a prime objective to bring stability in the cryptocurrencies market. This makes Tether useful as a medium of exchange.
Tether coin is a fiat collateralized stablecoins. It is different from other stablecoins, which include crypto collateralized stablecoins. The main objective behind the designing of Tether coin was creating an important link between the cryptocurrencies and fiat currencies. Other than this, it also aims to provide stability to its users. It is pegged to the U.S. dollar maintaining a 1 to 1 ratio with the U.S. fiat currency.
However, Tether Ltd. that made its debut in trading in February 2015 does not give any guarantee for the exchange with real money. So it indicates that the exchange of Tether with U.S. dollars is not possible. But it does have an onus for securing the reserve amounts of fiat currencies. If you are not following the Bitcoin news today, then you may not be knowing the fact that 80% trading of Bitcoin is done in Tether.
This stablecoin is regarded as the main fount of liquidity in the market of cryptocurrency. Another interesting fact which you must know about Tether coin is that initially it was known as RealCoin, during its launch in July 2014. But in November, Tether Ltd. gave it a new name ‘Tether’.
Facing Controversy
Dating back to November 2017, there came a report about Tether coins, having worth of $31 million being stolen due to hacking. Then in January 2018, it faced another problem when as a mandatory audit, it was supposed to maintain the real world reserve, which never took place and instead it made a blunder with an announcement of leaving audit firm. This made regulators issuing subpoena on it.
