What Is Tether Coin? Learn About Tether Crypto Coin

Tether (USDT) is a fiat related cryptocurrency issued by the Tether Limited Company. Using blockchain technology, Tether Coin allows users to store, send and receive digital tokens pegged to dollars, euros, and yen.

Tether Review

Tether Coin uses the same blockchain as Bitcoin (and the same SHA-256 encryption algorithm)[1] via an omni-layer protocol. The Omni Layer Protocol is open-source software that interacts with the blockchain, enabling the sharing and exchanging of Bitcoin-based cryptocurrency tokens.

What Is Tether Coin

Tether currency is backed by 100% actual currency assets held in reserve accounts on the Tether platform. Cryptocurrencies can be purchased or exchanged for fiat currency in accordance with Tether Limited’s Terms of Service. In the summer of 2017, plans to issue USDT tokens on the Litecoin blockchain were announced.

Financial support

Tether Coin currently works with US dollars and euros; Operations in Japanese Yen are planned to be added in the near future. The tethers associated with these currencies are denoted as USDT, EURT, and JPYT, respectively. Cryptocurrency financial support is provided by a Bank Trust operating in Taiwan.

The ratio of the volume of issued Tether coins and financial support can be viewed in real-time mode on the platform’s website. Despite the announced USDT and USD parity, the cryptocurrency was trading for just under a dollar in mid-October 2017.

The Tether (USDT) cryptocurrency is presented on a range of exchanges including Poloniex, KuCoin, Bittrex, Bitfinex, Binance, Kraken, OKEx, and presents a virtual analog of the US dollar. One more exchange platform Changelly offers a way to buy USDT with a banking card. In September 2017, the Ethfinex exchange announced the support of USDT.

Wallets

Cryptocurrency Tether (USDT) can be stored using any crypto wallet that supports Omni Layer technology, it can be Holy Transaction, Omni Wallet, etc. There is also an official Tether wallet, it is a software designed to store USDT tokens on Android and iOS platforms.

Risks

Theoretically, USDT can be exchanged for dollars at any time on the Tether platform itself. However, the platform rules state that Tether is neither money nor a financial instrument and Tether Limited is under no obligation to exchange its tokens for fiat currency, nor does it guarantee such exchange and protection against loss when buying, selling or exchanging Tether.

Some experts believe that in this way the company protects itself from possible regulatory restrictions in different jurisdictions. However, in the same way, cryptocurrencies can actually lose real support by failing to renew their exchange rights.

Restrictions

Tether Coin is considered a crypto platform that must trade securely and transparently and comply with all terms and rules. Because of this, Tether does not work in these countries and some US states that do not regulate virtual currencies.

Countries with limited cryptocurrency functionality include Afghanistan, Bosnia and Herzegovina, North Korea, Ethiopia, Iran, Iraq, Laos, Syria, Uganda, Vanuatu, and Yemen. The use of cryptocurrencies is also restricted in New York and Washington.

Price drops

Much of the controversy surrounding USDT has to do with falling prices. Despite being “pegged” to USD, USDT sometimes loses some of its value per coin. The biggest price drop occurred on April 25, 2017 when the price hit nearly $0.9 per coin. This drop came after news that an international tether cable was rejected by a Taiwanese bank.

Results of. Traders sell USDT coins, making the USDT price much lower. Several cryptocurrency exchanges (especially those implementing tether as an alternative to the US dollar) are witnessing a rapid uptrend in the price of bitcoin.

The same thing happens with other cryptocurrencies that are traded in pairs with Tether. Tether’s price adjustment technique is not stable enough to set the USDT price in a minute or an hour.

Another significant drop in the price of Tether occurred on October 16, 2018. An unknown organization (or individual) made a significant sale of USDT. During the subsequent drop in Tether’s price, other cryptocurrencies received large short-term price spikes, giving well-rounded investors a convenient opportunity to make speculative profits.