dollar, drop to less than $0.23, caused Tether to break its $1 value, crypto experts say. Recent market turbulence, which saw the price of TerraUSD, another stablecoin pegged to the U.S. Using Tether for liquidity began when it was added to the BitFinex exchange in January 2015. Willet implemented this idea with Mastercoin, and one of its original members would later become the co-founder of Tether in 2014. Willet was looking to build new cryptocurrencies on the Bitcoin protocol. The roots of Tether date back a decade, to when J.R. There are Tether tokens available on various blockchains, such as the original one with Omni on the Bitcoin platform as well as Liquid, in addition to Ethereum (ETH) and TRON (TRX), among others. Tether moves across blockchains like many other digital currencies. Tether coins are destroyed and removed from circulation when users redeem the tokens for fiat currency. If a user deposits $100 in the Tether reserve, then in keeping with a 1-to-1 dollar parity, they will receive 100 Tether tokens. The USDT can then be sent, stored or exchanged. When a user deposits fiat currency into Tether’s reserve, selling fiat to buy USDT, Tether then issues the corresponding digital amount in tokens. It’s also among the top three largest cryptos by market capitalization. That makes Tether the most liquid cryptocurrency-beating even crypto market stalwarts Bitcoin (BTC) and Ethereum (ETH). Tether had a 24-hour trading volume of $89 billion at the time of this writing. Tether’s stablecoin competitors include USD Coin (USDC), Dai (DAI) and Pax Dollar (USDP), to name a few.Ĭrypto traders use Tether to provide steady, reliable liquidity to get in and out of other cryptocurrency trades without facing unpredictable losses (or gains) from volatile price changes. “The idea is that 1 Tether can always be traded for $1, regardless of market conditions,” says Steve Bumbera, chief operating officer of Many Worlds Token. The goal is that Tether should always maintain the same value as its peg. That’s what makes USDC a stablecoin, whose value is pegged to the price of the U.S. Tether aims to provide a “safe” digital asset that maintains a stable valuation. Please invest carefully, your capital is at risk Tether Is a Stablecoin
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |