USDT

Tether (USDT) is a stablecoin that is pegged to the US dollar. This means that every Tether token is worth $1 USD. The advantage of using this cryptocurrency over others is that your money will always be worth $1, no matter how much time has passed since you invested in it. This brings peace of mind to investors who prefer safety over risk-taking when it comes to their finances.

For example, you could lend out your stablecoins to receive a high-interest rate in return – much higher than what you would get in a savings account at a bank.

Since stablecoins are always worth $1, you don’t have to worry that your investment will lose value when the market goes down. It means you can benefit from a high interest rate, without the same risk as other cryptos.

Tether is the Backbone of Crypto

Tether is the most traded cryptocurrency. With more than $60 billion worth of tokens in circulation, Tether has more deposits than many US banks. It accounts for the vast majority of cryptocurrency trading volume.

Most cryptocurrencies are bought with Tether, not dollars. Due to this, many people believe it is the backbone of the entire cryptocurrency market. Should it fall, the rest of the market will crumble with it.

Tether Controversies

Tether is quite controversial. There have been several attempts made to get Tether to release an audit showing it has adequate dollar reserves to back its tokens, but Tether has never provided one.

Tether was investigated by the New York Attorney General and Tether has since been prohibited from conducting business in the state of New York. The Attorney General said, “Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie.”

In May 2021, Tether released a report stating that only 2.9% of its Tether tokens are backed by cash. The rest is backed by commercial paper – unsecured, short-term debt.

There is also controversy surrounding Tether and the price of Bitcoin. Allegedly, Tether manipulated the 2017 Bitcoin bull run leading to Bitcoin’s $20,000 all-time high. Many people still believe Tether’s primary use is to keep the price of Bitcoin high.

If Tether has you raising your eyebrow, there are other stablecoins you can buy that have been fully audited.