Cryptocurrency’s third step: A USDT (Tether) story — Stable coin Part 1
Today I am going to talk about “USDT (Tether),” which acts as the dollar in the coin world. I’m sure you’ve heard a lot about bitcoin and Ethereum, so let’s learn about tether that follows those two.
What is USDT?
In 2014, three co-founders of the Bitcoin Foundation, Brockpiers, Liv Collins, and Craig Sellers, founded Tether Limited, a publisher of the USDT (Tether).
(Tether Limited is headquartered in Hong Kong.)
Tether (USDT) is a cryptocurrency designed to enable digital legalization.
Stable Coin is a cryptocurrency that holds fixed value for other types of currency or cryptographic assets. The value is based on the stable value currency, the US dollar (USD), and the equivalent is 1:1.
That is, 1 USDT = $1. And, you can always exchange USDT!
Tether USDT runs on the blockchain and utilizes security and transparency provided while meeting international standards and compliance.
Tether Limited’s reserve status can be checked at any time on the Transparency page.
Stable Coin (USDT) is one of the main channels that convert current legal currency into cryptocurrency.
Due to its close relationship with USD 1:1 value, it is very close to legal currency.
Shall we find out about the pros🌟 and cons⚡️of USDT?
Pros of USDT 🌟
- There are no restrictions on transmission and you can use it anywhere in the world at a low cost per transaction.
- It’s fast.
Since the price is shown the same as the dollar, there is no volatility problem that affects other cryptocurrencies.
Cons of USDT⚡️
- It can raise suspicions about unfair competition.
- It’s never been officially audited.
- There are several problems, such as frequent suspension of deposits and withdrawals due to unstable transaction relations with banks, and the fact that deposits were loaned to affiliates.
- USDT can go bankrupt (USDT is a company. Both partnerships and businesses follow strict internal policies, but there are concerns about bankruptcy).
How was the USDT (tether) story today?
It’s rather simple information, so please read it lightly. I hope you learn a lot, and we will be back soon!
Kudos to you for studying today :)