“Each of our digital coins in backed by one U.S. Dollar,” says Tether. This article will cover up all the FAQs about the most hotly debated statement made by Tether.
1. What/Who is a Tether?
Unlike Bitcoin, Tether is such an issuer of cryptocurrency whose tokens are stable. Bitcoins value fluctuate wildly depending on the market conditions, while Tether currencies are always near $1. This is because Tether says that each of its coins is backed by $1 in its bank accounts.
2. Why are the Tether coins popular?
Since the value of their coins is close to $1, they are used by traders as a substitute for dollars. Being a cryptocurrency, Tether’s coins don’t have to go through the time taking banking system, making them easily transferable.
3. Why are these skeptics?
Tether is yet to provide any substantial evidence on its statement. Moreover, there have been allegations that trading in Tether’s coins on Bitfinex has popped up Bitcoin’s price. Tether and Bitfinex, one of the world’s largest cryptocurrency exchange, has the same CEO which is making these allegations stronger.
On these allegations, Bitfinex released a statement on Medium on Oct 8 saying that
“Complications continue to exist for us in the domain of fiat transactions, as they do for most cryptocurrency-related organizations. However, we continue to do our utmost to minimize any waiting times associated with fiat deposits and withdrawals.”
So, if any evidence of any wrongdoing comes up at Tether, USDT could lose its value quickly.
With roots in Patna, I am a Mechanical Engineer currently employed in Jabalpur. Working as a Senior Engineer in Heavy Machines Sales, I have been associated with different blog sites in different categories for over a year now. The categories include comics, sitcoms, movies and talent acquisitions.