What Is Tether (USDT)?
Tether is a kind of tool for transferring cash US dollars into cryptocurrency. The main task of this platform is to reflect US dollars in crypto. Therefore, the cryptocurrency was named USDT (United States dollar tether). But in fact, Tether is ready to solve a variety of tasks, it has many corresponding capabilities one of which is stability achieved by having the coins backed by fiat money.
The volatility of cryptocurrencies is a double-edged sword. On the one hand, volatility provides great opportunities for investors. On the other hand, volatility makes it difficult to use cryptocurrencies as a store of value.
But do you know that there is a way to eliminate the negative properties of volatility? Stablecoins like Tether (USDT) serve this very purpose.
Tether is the first company in the world which created a platform where it combined the functions of cryptocurrencies and fiat. The Tether project works on blockchain technology, the Tether developers took the Bitcoin blockchain for their project, so it is completely protected. Like any cryptocurrency, Tether does not have an issuer, and it is completely decentralized, which allows anyone to purchase it.
The token was issued in 2015 by Tether Limited. Soon, rumors appeared in the cryptocurrency community that this company was associated with the Bitfinex exchange platform, which was the first one to integrate this token into its service. Tether cryptocurrency is an ordinary digital asset, its exclusive feature includes the use of digital equivalents of real currencies. Thanks to this parameter, the Tether cryptocurrency is free from speculative moments that, to some extent, scare people away from the crypto sphere. The Tether platform is capable of converting US dollars, Euros and Japanese yen into a cryptocurrency called Tether. In this case, Tether has one hundred percent security of its coins, i.e. Tether to USD ratio equals 1: 1, 1 EURT is equal to 1 EUR, as you can see the cryptocurrency ticker changes depending on the currency that is converted into it, the letter "T" is added to the name of the currency.
Here is a list of the salient features that give Tether (USDT) an edge over other platforms:
- Protection against fraudulent transactions with two layers.
- The available conversion is complemented by ease of use.
- Trade, transactions and transfers are placed at a high level of security, which is ensured by the legal environment.
- Access to current user tools has been established through universal wallets with significantly expanded features.
In particular, Tether coins began to spread quickly after 2017, which, in turn, led to an even greater expansion of opportunities. Tether (USDT) can be stored with little or no risk. Even the most popular cryptocurrencies do not have this advantage as their vulnerability depends on price fluctuations even from minor changes in the cryptocurrency or global financial market.
Members of the crypto community have different attitudes towards USDT: some people accuse the project of manipulating the market, others see great potential in it. Tether representatives regularly issue new coins, which indicates that there is a demand for USDT stablecoin.
You can buy a cryptocurrency analogue of the American dollar on almost all cryptocurrency exchanges. To conduct these transactions, you must register on the platform. The downside is that the verification procedure is quite long, and not everyone wants to provide personal data. Those who are not ready to wait will appreciate the offers of the Godex.io exchange service.
If you need to buy or sell Tether (USDT) anonymously and at a fixed rate here you can easily exchange Tether on favorable terms.
The easiest way to buy Tether is to register on the platform's official website and go through verification. Registration is simple: you need to enter your first and last name, email address and country / state of residence. After registration, you will immediately be taken to the Tether online wallet page, where the system asks you to confirm your mail and connect two-factor authentication using a QR code and the Google Authenticator app.
Then you will need to go through the verification of a private or legal entity (for $ 150). This is necessary for KYC and AML procedures, as well as for the system to determine the jurisdiction. Persons from Venezuela, Congo, Syria, Iran, Pakistan, North Korea and Crimea have no access to the service. American entities may use the site only if they are allowed to be engaged into financial transactions in accordance with the Eligible Contract Participants (ECP). You may buy / sell / exchange Tether on P2P platforms such as PaxFull, Cryptolocater, Binance P2P and others. Interaction on these sites happens directly from user to user.
Another option for obtaining USDT is investment in projects that pay income in USDT tokens.
Circulation of Tether
During the COVID-19 pandemic and the economic crisis caused by the virus, the volume of USDT stablecoins in circulation has registered an unprecedented increase.
Tether's growing popularity is one of the four factors that the cryptocurrency market has "matured" over the past three years.
Other factors include:
- Shifting interest in derivatives (futures and options) from spot trading;
- Reducing the cost and increasing the availability of loans in cryptocurrencies;
- Digitalization of over-the-counter trading platforms, which led to tight spreads.
As you already know from the Tether news, the long-suffering crypto-exchange Bitfinex and the even more distressing payment platform Tether have entered into an agreement with the New York Attorney General's Office (NYAG) to pay $ 18.5 million in a case of probable fraud, violation of several state laws and destruction of documents relevant to the investigation. The Attorney's Office considers it proven that Bitfinex and Tether, as well as their numerous legal entities, violated the Martin Act and the Executive Law 63. The accused parties neither confirm nor deny, what is stated by the prosecutor's office. Under the terms of the settlement, Bitfinex and Tether also pledged to stop serving New York state customers, including OTC trades, to officially publish their holdings for two years, and made a number of other commitments.
Tether has become one of the most successful digital currencies along with Bitcoin, so the investigation results will impact the entire market of digital assets. Regulators are closely watching the cryptocurrencies calling to tighten the rules regulating trade in these assets.
Can You Mine USDT ?
Tether mining is not provided. The coins are released only by Tether crypto platform and only in exchange for fiat.