Tether Cryptocurrency – Why It’s Important

tether cryptocurrency - why its importantant
Tether () cryptocurrency is a controversial cryptocurrency with Token issued by Tether Limited; and its very important cryptocurrency based on the highly price volatility nature of the crypto space. At the publication of this article, Tether is no.7 popular cryptocurrency according to coinmarketcap.

Sequal to Teher whitepaper published online on January 2012, J. R Willet described the possibility of building new currency on top of Bitcoin protocol, and went on to implement the idea in the cryptocurrency mastercoin - associated mastercoin foundation later named Omni Foundation.

Tether was originally named “Realcoin” back in July 2014 by its co-founder Brock Pierce, Reeve Collins and Craig Sellars as part of a blockchain startup and first issued tokens in October that year. In November that same year, CEO Collins renamed it to “Tether”. By January 2015, Tether stared trading on the cryptocurrency exchange Bitfinex, turns out the CEO of Bitfinex , Jan Ludovicus Vander Velde, also the CEO Holding limited.
The idea behind Tether cryptocurrency was to create a stablecoin (designed to always worth $1) that can be used like digital dollars, and nevertheless, Tether is stable and digitalized, which allows it to be used as a global medium of exchange that can be easily used for cross-border transactions.

Tether is by symbol – (), ticker – USDT, block explorer – Onmniexplorer.info and website – Tether.to/. Due to it nature (1:1 peg to USD), USDT can be used as a store of value due to its reduced volatility. So, USDT convert cash into digital currency, to anchor or “tether” the value of the coin to the price of national currencies like the US dollars, the Euro, and the Yen.

With Tether crypto ideology means that Tether trades at $1 on all exchanges, and can be used in place of a dollar. However, in practice, the price of Tether tends to fluctuate a little, like in the case of October, 2018 when the price of Tether slumped to $0.85 (but later rebounded back to $0.99), and that brought a lot of concern to investors and speculators attributing causes to Binance rumor of getting ready to delisting USDT (though Binance CEO later denied the rumor), or rumored to have been manipulating/protecting the price BTC during down turns by using USDT to purchased BTC to create artificial price floors, or due to the past critic of USDT not fully collateralized, where it ended its business relationship with its audit firm, Friedman LLP, back in Jan 2018 before it was supposed to undergo it audit.
Perhaps, Tether is facing increasing competition, there are some emerging USD stablecoin with greater level of transparency within the crypto market such as; Gemini Dollar (GUSD), True USD (TUSD), Paxos (PAX), USDCoin (USDC), nUSD (NUSD) etc, but that notwithstanding, the stable nature of Tether as one of only handful cryptos that can avoid highly volatility nature of the cryptocurrencies have made Tether (USDT – USD) the largest and most well known stablecoin, or cryptocurrency pegged to the value of a large fiat currency – USD, and mostly used as replacement on all crypto exchanges.
From January – September 2018, the amount of tether outstandingly grew from $10million to $2.8billion. In early 2018 Tether accounted for up to 80% of BTC volume according to coinmarketcap, making it the 7th largest crypto and second most traded crypto.

Due to Tether stable value, USDT provides a reference point for users in the crypto community, set as a measurement unit to compare market values, and a smart crypto trader can use it to maintain the value of his or her crypto portfolio or investment during bearish market by converting their crypto assets into USDT and store them with exchanges instead of having to hold the more volatile cryptocurrencies. This is more important in the bearish, compared to bullish, since USDT – USDT price is said to be static.

Recently, Bitfinex added four more USD – backed stablecoins as trading pairs on their platform. This is in addition to their own infamous market leader – Tether. It’s also great development in the market, as it should decrease the market dependency on the controversial stablecoin – Tether. It also shows how the cryptosphere has generally continued its migration toward legitimacy.

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