Tether (USDT): What Clears Doubt Surrounding the $1 Token?
Price stability is one of the most sought-after traits in the crypto space, as digital assets in all tiers are hit constantly by price drops and hikes, losing and gaining double digits in a matter of hours.
However, since March 2015, Tether (USDT) has remarkably managed to maintain a stable price of $1 (never losing more than 3% and occasionally appreciating above the $1 mark).
Tether as a stable coin plays a key role in the sustenance of cryptocurrencies and the operation of many leading cryptocurrency exchanges. However, Tether Limited the company issuing the USDT is not one free from controversy and public backlash, with the transparency of the company being called to question very often.
What is Tether (USDT)?
Tether is a cryptocurrency was created to facilitate the transfer of the U.S national currency (USD). Tether was meant to be backed one-for-one by the USD, combining the stability of the US dollar with the interoperability of a cryptocurrency. Tether was created to remain a crypto-dollar.
How Does Tether (USDT) Work?
Tether adopts the Proof of Reserves system where details of the amount of Tether tokens (USDT) in circulation can be easily checked on the Bitcoin blockchain via the tools provided at Omnichest.info. With this system, the corresponding total amount of USD held in reserves is proved by publishing the bank balance.
For example, Tether Limited printed 300 million USD on March 20, 2018. The new method Tether has adopted is more transparent and has substantially reduced the controversies surrounding the $1 cryptocurrency. Details of that can be found here.
Bank draft of the 300 Million USD printed by Tether Limited
The total amount of Tether tokens (USDT) currently in circulation can be found here, TUSD denotes the total amount of USDT in circulation at the time you check. The amount of USDT in circulation must always correspond to the amount of USD in the bank account used by Tether Limited to receive and send fiat currency.
Tether Limited is keen on proving the transparency of their reserves and bank account, and so publishes the bank account balance on its website’s Transparency page. The Bank balance and financial transfer statement is regularly signed, verified and published by professional auditors. The amount of USD in the bank account at any time must be the same or more than the amount of USDT in circulation at that time.
Current Status of Tether
Regardless of all the backlash, Tether remains one of the giants in the market. Holding its functional $1 tag, with a market capitalization of $2,296,518,091 (USD) Tether is the 14th biggest digital asset. A whopping$2,896,380,000 (USD) worth of Tether was used for trading in the last 24 hours.
The new transparency policy that Tether Limited has adopted is sure to quiet critics of the $1 stable token and perhaps create confidence for more willing investors. Tether (USDT) is expected to retain its $1 price peg, and so is not a digital asset expected to double in a couple of hours like most others.