The cryptocurrency Tether managed to establish itself as the fourth-largest digital currency within a short time. The rope stands out from other cryptos in one aspect; it is a so-called Stablecoin, which always based on the US dollar.
• Stablecoin linked to the US dollar
• Unspectacular to the fourth-largest crypto
• Issuer distributes Tether in a centralized manner
Stablecoin with no volatility
Tether is a cryptocurrency that was released for trading in 2015 by Tether Limited, based in Hong Kong. Since then, this cyber motto has been able to establish itself relatively unnoticed as the world’s fourth-largest cryptocurrency.
The Tether is a so-called Stablecoin, which means it is based on a fixed “real” price. The value of money is firmly tied to the US dollar, which makes it unspectacular for many crypto traders, but is less volatile than independent cryptocurrencies.
This was precisely the concept that Tether Limited as an issuer intended to achieve. Tether is A cryptocurrency that used as a digital US dollar.
The concept of Tether Limited
The company Tether Limited, which is behind the cryptocurrency of the same name, was founded in 2014. In addition to its headquarters in Hong Kong, the company has a second headquarters in Santa Monica, California.
The group grew into being to enable to provide global trading of Tether as an operational trading platform. With the stablecoin, the group wanted to create a bridge from the digital to the real world and merge the boundaries of cryptocurrency and traditional currency.
The market capitalization of $ 10 billion
Tether exists on the blockchain basis of the in-house Omni protocol; the protocol transfers the individual tokens from the blockchain. But mainly the Tether is issued via the external Ethereum blockchain.
In addition to the Tether, linked to the US dollar (USDT), there is also a EURT, i.e. a Tether with a connection to euro. The USDT currently supported by market capitalization of around 10 billion US dollars.
Further Tether variants also planned for the future; the next step is to digitize the Japanese yen by Tether Limited.
Anyone who has a tether wallet can trade and use the cryptocurrency. These can be set up on the crypto website, but also on third-party platforms. Those who act within the Tether network do not have to bear any additional costs.
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In contrast to other cryptocurrencies, the Tether not mined externally, as this would lose its price stability. Tether Limited has to increase its US dollar or euro portfolio to bring more Tether into circulation.
This gives the Tether its status as a secure cryptocurrency.