What is USDT?
What is USDT?
Tether (USDT) is a well-known stablecoin in the world of cryptocurrency. It competes with the likes of Bitcoin and Ethereum in terms of popularity, and even those who are not well-versed in crypto have likely heard of it. This article delves deeper into what Tether is and how it works.
Tether is a stablecoin pegged to the U.S. dollar, with each token backed by Tether's reserves. It’s owned by iFinex, the Hong Kong-registered company. Tether was born in July 2014 as RealCoin and was later rebranded in November of the same year. It supports various protocols, including Ethereum, TRON, Solana, EOS, Algorand, and Bitcoin Cash blockchains.
As of January 2023, Tether had a market capitalization of almost $68 billion, making it the largest stablecoin and the third-largest cryptocurrency after Bitcoin and Ethereum. Tether's USDT accounted for most of the exchanges out of Bitcoin by value in 2022.
As we know, Tether belongs to stablecoins, which aim to maintain a stable price for their tokens. They do this by pegging their value to traditional currencies like the U.S. dollar. Tether has tokens pegged to other currencies, including the euro, offshore Chinese yuan, Mexican peso, and even gold. Although, the U.S. dollar-pegged USDT tokens market cap is much lower than others.
Tether maintains transparency by updating its reserve holdings daily on its website, which is quite essential for coin holders. As of Jan 2023, Tether reported assets of $67.8 billion for USDT. It held 82.45% of its reserves in cash, cash equivalents, short-term deposits, and commercial paper, 4.69% in corporate bonds, 9.02% in secured loans to unaffiliated entities; and 3.85% in other investments, including digital tokens.
USDT is useful in helping investors move funds between cryptocurrency markets and the traditional financial system, reducing volatility due to its 1-to-1 peg to traditional currencies.
How to buy USDT?
Purchasing USDT can be made effortless by using Simple.App. By downloading the app, you can buy it through either a bank card or cryptocurrency payment. It's an easy process, so why not give it a try?