Tether, also known as USDT, is a revolutionary digital asset in the cryptocurrency space. Here we delve into its working principle, application, the team behind it, and its price history.
What is Tether and how does it work?
Tether is a type of cryptocurrency known as a stablecoin. Its major distinguishing feature is that its value is pegged to the US dollar. This means that for every Tether token issued, there is a corresponding dollar held in reserve. It acts as a bridge between the traditional fiat economy and the digital currency sphere, providing a stable digital equivalent to the dollar on the blockchain.
Uses of Tether
One compelling reason for using Tether over traditional cryptocurrencies is its price stability. Tether provides an avenue for businesses and individuals to transact using a currency that has the blockchain benefits of cryptocurrencies, yet stable in value unlike Bitcoin and altcoins. It is a popular choice for traders to escape the volatility of the crypto markets without exiting the markets completely.
The Team behind Tether
Tether is operated by Tether Holdings Limited. The company is led by JL van der Velde as the CEO, with Giancarlo Devasini as CFO, and Stuart Hoegner as the General Counsel. This team has broad experience across a variety of industries, bringing a wealth of knowledge and expertise to the Tether project.
Tether's Price Development
Given its design, Tether's price has remained relatively stable over the years as it is pegged to the US dollar. However, as the adoption of cryptocurrency increases, so does the demand for stablecoins like Tether, impacting its trade volumes and market capitalization. By the end of 2020, Tether had grown to become the third largest cryptocurrency by market cap, demonstrating the growing demand for stable value in the otherwise volatile crypto market.
Whether you've been involved in the crypto economy for years or are just getting started, Tether provides a unique blend of digital currency advantages and traditional currency stability.
