Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Stable Coins Forum => USDT Forum => Topic started by: rajput on June 02, 2021, 09:46:07 AM
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It is not bitcoin or ether, but tether which is the most traded cryptocurrency today. Commonly denominated as USDT, tether is a stable currency, which can be redeemed for a dollar. In other words, if one holds 100 USDT, they can redeem it for $100. Founded in 2014 by Brock Pierce, Reeve Collins, and Craig Sellars, tether is called a ‘stablecoin’ since it is pegged to the US dollar. The need for tether came in when it was difficult for exchanges and companies to hold sovereign currency. In order to hold fiat money (sovereign currency) on behalf of the user, the exchange needed to have a license. The need was aggravated by the need for traders to be able to easily move between crypto and fiat. And thus tether was invented.
Traders use tether as a substitute for dollars. It can easily be transferred between exchanges or people, instead of transferring money through banks. Tether is easy to buy and sell and is available at the place you buy your cryptocurrencies. Tether is also often used as a way to hold money on exchanges when traders feel the market is extremely volatile.
info. https://www.google.com/amp/s/www.livemint.com/money/personal-finance/tether-changed-the-way-we-look-at-cryptocurrencies/amp-11609085275084.html
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Tether and crypto exchange Bitfinex (with which it shares most of its management team), forcing Tether to make details of its reserves public in May. The disclosure revealed that less than 3% of Tether's reserves were held in cash.
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This point of view from Tether is proof that this cryptocurrency can be paired with all trades in cryptocurrency which of course is very open to Tether.
Tether is also currently in a bad situation and surely all the founders of Tether are trying to find the best way to escape the bad trap of this problem.
This is why Tether will become to be strong stable coin in the future !
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Correct !
I also quickly moved hundreds of USD to various markets with ease and it only cost me about 1 USD and this I often use for arbitrage and this would really be a wise choice if we compare it with Banks.
This is why we can see that Tether really helps us to continue to trade and seek our own advantages in the cryptocurrency market.
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Compared to 2017, the crypto market in 2021 saw USDT as USD and USDT participates in most of the important trading pairs of the crypto market. Tether has succeeded in making USDT an important part of this market, then manipulating it with securitized cash flows in a non-transparent manner.
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Indeed, Tether (USDT) has had a significant impact on the cryptocurrency landscape. As one of the first and most widely used stablecoins, Tether introduced the concept of a cryptocurrency pegged to the value of a traditional fiat currency, in this case, the US Dollar. This innovation has influenced the crypto industry in several ways:
1. **Stability in Trading Pairs:** Tether provides traders with a stable intermediary, allowing them to move funds between different cryptocurrencies without exposing themselves to the volatility of the broader market.
2. **Liquidity Bridge:** USDT serves as a liquidity bridge between traditional financial systems and the cryptocurrency markets, facilitating easier entry and exit for users.
3. **Market Dominance:** Tether has consistently been one of the most traded cryptocurrencies by volume, showcasing its importance in the broader crypto ecosystem.
However, it's important to note that Tether has also faced scrutiny and criticism, particularly regarding its transparency and the backing of its reserves. This has sparked discussions about the need for more transparent and regulated stablecoin alternatives. Overall, Tether's introduction has undeniably shaped the way people approach and use cryptocurrencies.