Tether

Tether Price Data

The live Tether price today is $0.99875900 with a 24-hour trading volume of $39,576,834,579.

We update our USDT to USD price in real-time. The price of Tether has changed 0.01% in the last 24 hours.

Currently, Tether is the #3 largest cryptocurrency by market cap, with a live market cap of $112,542,664,595.00. It has a circulating supply of 112,644,773,126 USDT coins but the maximum supply is not available.

See where to buy Tether or use our Tether Profit Calculator to calculate and track the performance of your investment.

Tether at a glance

Tether is a stablecoin created to help crypto investors and traders de-risk from volatile assets. It is designed to maintain a 1:1 peg with the US dollar. It uses a Proof-of-Reserves mechanism, is energy-efficient, and allows for staking.

Tether offers stability and serves as a vital bridge between fiat currencies and the dynamic world of cryptocurrencies. 

What is Tether?

Tether, also known as USDT, is a stablecoin created by iFinex, the company behind the crypto exchange BitFinex.

Tether is designed to maintain a 1:1 peg with the US dollar offering traders and investors a reliable store of value in the highly volatile world of cryptocurrencies.  

Tether supports a range of currencies that include the US dollar (USD₮), euros(EUR₮), the Chinese yuan (CNH₮), and the Mexican peso (MXN₮). Tether also offers tokenized gold represented as XAU₮. 

What determines the price of Tether? 

Although Tether is designed to maintain a 1:1 peg with the US dollar, slight deviations from the 1:1 ratio occur from time to time. 

These variations are influenced by factors such as supply and demand dynamics and market crashes as well as other factors in traditional finance such as inflation, economic growth, and the monetary policies of the United States. 

USDT price history

USDT was launched in 2014 by Hong Kong-based Tether Ltd. It was designed to provide price stability in the volatile world of cryptocurrencies. 

Tether was one of the earliest entrants in the stablecoin space. It pioneered the first fiat-collateralized stablecoin. It is traded at all major crypto exchanges providing an effective alternative to fiat currencies. It is currently the most widely used stablecoin. 

Originally created on the Bitcoin network, each USDT token is claimed to be backed by a 1:1 reserve of traditional fiat currencies, primarily the US Dollar. Despite controversies and auditing concerns, USDT’s popularity has grown due to its stability and widespread availability on exchanges. 

Tether expanded its reach by launching USDT on various blockchains, and regulatory scrutiny prompted improvements in transparency. 

Today, USDT remains a significant force in the crypto space, bridging the gap between fiat and digital currencies.

How does Tether work?

Tether’s operational framework revolves around its peg to the USD. Tether uses a Proof-of-Reserves mechanism to ensure that each Tether token is backed by corresponding USD reserves held by the company. 

These reserves encompass various assets such as cash, corporate bonds, loans, and other investments, providing transparency and assurance to Tether users.

Unlike many cryptocurrencies, Tether does not operate on its own blockchain. Instead, it runs on existing blockchains such as Bitcoin, Ethereum, EOS, Tron, Algorand, and OMG Networks, leveraging their established infrastructures. 

This allows for efficient issuance, trading, and use of Tether across multiple blockchain ecosystems.

Tether cannot be mined. It operates as a centralized cryptocurrency issued by a private company.

What is USDT used for?

Tether can be used for a range of purposes: 

• Its stable value makes it a useful bridge between traditional currencies and more speculative cryptocurrencies. 
• Tether’s stability as a coin tied to the USD makes it a preferred choice for traders and investors looking to mitigate price volatility.
• Since it is akin to digital dollar, Tether is a good way to send and receive money as well as pay for goods and services. 

Pros and Cons of Tether (USDT)

Pros

• Tether offers stability by being tied to the USD, reducing volatility risks.
• It is highly liquid, with significant trading volumes and wide availability on major exchanges.
• Tether serves as a bridge between traditional fiat currencies and cryptocurrencies.
• Its transparent mechanism of backing assets provides a degree of assurance to users.

Who are the Founders of USDT?

Originally founded in 2014 as Realcoin, Tether was established by Brock Pierce, Reeve Collins, and Craig Sellars. 

Initially, the coin exclusively operated on the Bitcoin blockchain. However, it underwent a name change to Tether after a few months. It has since been duplicated on multiple blockchains.

Currently, the CEO of Tether is Jean-Louis van der Velde.

What makes USDT unique?

Some unique characteristics of Tether include:

• Tether’s status as a stablecoin with a relatively stable value.
• Its utilization of existing blockchains instead of having its own blockchain.
• Tether’s implementation of the Proof-of-Reserves mechanism, ensures that each Tether is backed by one USD through various assets.
• Tether’s issuance of tokens pegged to currencies other than the USD, expanding its utility.

How is USDT secured?

The company behind Tether claims to maintain reserves equivalent to the total value of Tether in circulation. However, it is important to note that Tether’s transparency and reserve practices have been the subject of controversy and scrutiny. 

Tether publishes quarterly reports on its website, updating the total value of assets held.

Further Reading:

The Ultimate Beginner’s Guide to Bitcoin

The Ultimate Beginner’s Guide to Ethereum

AuthorAbraham Jimoh

Abraham is a savvy financial analyst, trader, and writer, leveraging a Google certification in data analytics alongside a Bachelor's degree in Economics to navigate and excel in the dynamic landscape of finance. Abraham boasts exceptional analytical skills and market research prowess, evidenced by a remarkable three-month winning streak trading bitcoin futures without a single loss, earning him recognition on Binance USD-M crypto futures' top 200 weekly charts. Currently serving as the Assisting Country Manager for Financer US, Abraham combines practical expertise with a passion for demystifying finance.

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