Rather, it exclusively uses USDT.Īt first, all Tether was based on the Omni Platform. In April 2017, Bitfinex and Tether experienced a freeze of their fiat operations, when US Bank and Wells Fargo withdrew as banking partners.Īs a result, Bitfinex now refuses US customers and it no longer provides markets denominated in USD. New Tether accounts flow mostly to Bitfinex. This leadership was confirmed by the Paradise Papers leak, although the news didn’t come as a surprise to anyone paying attention. Tether is directed by some of the same people behind Bitfinex: Philip Potter and Giancarlo Devasini. If you hold USDT, it would lose an equal amount of value as the USD. It’s worth noting that Tether users are protected from the volatility of cryptocurrency, but they’re still exposed to fluctuations in the price of the pegged fiat currency.įor example, consider what would happen if a momentous event occurred that halved the value of the US dollar overnight. It’s basically a crypto dollar (at least in value).Īnother currency that Tether uses is the Euro, in the form of EURT. The most popular peg Tether uses is to the US Dollar (ticker symbol USDT).ġ USDT is intended to remain exactly equal to $1-not a cent more or less. Tether (₮) is a stablecoin pegged to fiat currencies. For example, you can have a BTC/USDT trading pair which simulates the BTC/USD market without the need for regulation. Stablecoins allow exchanges to create fiat currency pairs without actually accepting fiat. Stablecoins are issued by centralized companies that maintain the peg, either by putting up collateral or through some sort of algorithm that manipulates the stablecoin’s supply, depending on the demand. For a more detailed review keep on reading, here’s what I’ll cover:Ī Stablecoin is a cryptocurrency that is pegged to a real world currency, also known as fiat currency (e.g. There are serious concerns about the solvency of the company issuing Tether, which has been neither based nor disproven so far.

This allows traders to transfer the “fiat equivalent” in value between exchanges, without the need for normal fiat currency regulation. USDT is pegged to the US Dollar and is issued by the company known as Tether.

Tether is a stablecoin that is pegged to different fiat currencies. Don’t Like to Read? Watch This Video Instead: In this post, I’ll explain what a stablecoin is, what Tether is and how it works. Tether is one of the most popular stablecoins around today.

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