Tether was one of the first cryptocurrencies to peg its market value to a traditional fiat currency, or a real asset, such as the dollar, yen, or euro; Therefore, it falls under the list of “stable currencies” and its value is equal to one US dollar, and it is one of the most stable digital currencies. Another cryptocurrency linked to the price of gold is derived from it called Tether Gold, which is also backed by the actual value of gold.
the beginning..
Announced in July 2012, Tether was designed by J.R. Willett and co-founders Brock Pierce, Reeve Collins, and Craig Cellars, and was originally called RealCoin. The brand then took its current name a few months after its launch and hit the crypto markets the following year in 2015.
Tether uses its own protocol called “Omni Layer”, unlike other digital currencies that depend on complex mathematical algorithms and need solutions to mine them.
Features and Benefits
Tether tokens can be traded on popular cryptocurrency exchanges, and they provide a good way for investors to avoid extreme volatility and sudden drops in other cryptocurrencies. This allows Tether to be better used as a method of exchange and storage of value, rather than as a vehicle for speculative investments. In addition, Tether can be traded anywhere in the world more quickly and with lower transfer fees than traditional banks and financial institutions.
Is it safe?
Tether is built on the highest secure cryptographic blockchain technology, and adheres to strict laws and global government regulations. It is backed by 100% of the company's backing reserves, which is Tether Limited. This currency can also be transferred and converted to any other currency, and it can also be exchanged in its true value as it is through any active “Omni Layer” wallet.
Tether Disadvantages
The stablecoin Tether is a controversial currency, specifically in terms of transparency and maintaining a dollar reserve equivalent to the number of issued units of this currency; Some investors and economists are concerned that the issuer of the currency, Tether, does not have these reserves to justify the dollar peg.
There are also lawsuits against the same institution over its alleged role in manipulating Bitcoin prices. In 2017, the company's portfolio was hacked, costing it $31 million.