What is Tether (USDT)?

Tether (USDT) is a type of cryptocurrency known as a stablecoin. Stablecoins are designed to maintain a stable value by being pegged to a reserve of assets, typically traditional fiat currencies like the US Dollar (USD), at a 1:1 ratio. In the case of Tether, each USDT token is meant to be backed by one US Dollar held in reserve.

Tether was created to provide a bridge between the cryptocurrency world and traditional financial systems, offering a stable value that can be used for trading, investing, and transferring value without the price volatility often associated with other cryptocurrencies like Bitcoin or Ethereum.

Tether Limited, a company associated with the development of USDT, initially claimed that each USDT token was fully backed by USD reserves held in a 1:1 ratio. However, over the years, there have been concerns and controversies surrounding Tether’s actual reserves, transparency, and potential market manipulation. Tether has faced scrutiny from regulators and the broader cryptocurrency community, particularly regarding its claims of having adequate reserves to back the issued tokens.

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How Does Tether Work?

Tether (USDT) is a type of cryptocurrency known as a stablecoin, which is designed to have a stable value, typically pegged to a fiat currency like the US Dollar (USD). Tether was one of the first stablecoins and is widely used in the cryptocurrency ecosystem for trading and transferring value, especially when traders want to quickly move funds between different exchanges without relying on traditional banking systems. Here’s how Tether works:

• Pegging to Fiat Currency: Tether’s primary feature is that it aims to maintain a 1:1 peg with a fiat currency, typically the US Dollar. This means that for every USDT token in circulation, there should be an equivalent amount of US Dollars held in reserve by the company behind Tether.
• Reserves: To maintain the peg, Tether Limited, the company behind Tether, claims to hold sufficient reserves of US Dollars or other assets. However, the exact composition of these reserves has been a subject of controversy and scrutiny. It has been claimed that Tether might not always hold enough reserves to back all the USDT tokens in circulation.
• Issuance and Redemption: Tether tokens are issued and redeemed on various cryptocurrency exchanges. When a user wants to acquire USDT, they send funds (typically other cryptocurrencies like Bitcoin or Ethereum) to a participating exchange, and the exchange issues an equivalent amount of USDT to the user's wallet. Conversely, when a user wants to convert USDT back to fiat currency, they can redeem USDT for the corresponding amount of cryptocurrency or fiat on the exchange.
• Transparency: Tether Limited occasionally releases reports claiming to show the amount of reserves they hold to back the issued USDT tokens. However, these reports have faced criticism for lacking sufficient independent audits and transparency.
• Blockchain Technology: Tether is built on various blockchain platforms, including Bitcoin (using the Omni Layer protocol), Ethereum (using the ERC-20 token standard), Tron (using the TRC-20 token standard), and more. These platforms provide the infrastructure for creating, transferring, and verifying the ownership of Tether tokens.
• Usage: Tether is commonly used by cryptocurrency traders to hedge against market volatility. For example, if a trader believes the market is going to experience a downturn, they might convert their cryptocurrencies into USDT to “park” their funds in a stable asset until the market stabilizes.

Who is the Founder of Tether (USDT)?

The founders of Tether (USDT) are Brock Pierce, Reeve Collins, and Craig Sellars. Tether was originally launched in 2014 under the name “Realcoin” and was rebranded as Tether later on. It was designed to provide a stablecoin solution for the cryptocurrency market by pegging its value to a fiat currency like the US Dollar.

Brock Pierce, a well-known figure in the cryptocurrency and blockchain space, was one of the co-founders of Tether. He has been involved in various blockchain-related ventures and was a key figure in the early days of the cryptocurrency industry.

Reeve Collins was another co-founder of Tether and has had experience in technology and media ventures.

Craig Sellars, the third co-founder, played a crucial role in the technical development of Tether. He was also involved in the development of the Omni Layer protocol, which Tether initially utilized on the Bitcoin blockchain.

How to buy Tether (USDT) on XT.COM?

Tether (USDT) can be purchased directly from XT.COM by using a debit or credit card. Tether (USDT) can also be traded for other cryptocurrencies on the XT.COM Crypto Exchange. Live Tether (USDT) price is updated in real-time on XT.COM. Buy Tether (USDT) on XT.COM in four simple steps:

1. Create your free XT.COM account
   Sign up or download the XT.COM app and start the sign-up process. Provide your email address, country of residence and secure your account with a strong password.
2. Secure Your Account
   Ensure stronger protection of your account by setting Google 2FA code and anti-phishing code.
3. Choose how you want to buy the Tether (USDT) asset.
   Click on the “Buy Crypto” link on the top left of the XT.COM website navigation, which will show the available options in your country.
4. Buy Tether (USDT)
   Use a variety of payment options to buy Tether (USDT) on XT.COM.