Tether (USDT)

stablecoin
omni token
eth token
tron token
eos token
#4

Marketcap Ranking

1.010122 (0.42%) arrow_drop_up

Market Price (24h change)

4,149,624,233

Total Market Cap

2.6

3

info_outline What is Tether

4.7

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Short Description

General Data and Information. Announced in July 2014 by Brock Pierce, Reeve Collins and Craig Sellars as Realcoin, Tether (USDT) is the most popular and liquid stablecoin in the crypto-currency ecosystem. It is a token that was first issued on the Bitcoin blockchain using the Omni Layer platform, however it has since been launched as a token on various other blockchains (Ethereum, Tron, EOS and Algorand). Each token represents a claim (redeemable) against a single fiat US dollar held by Tether (the company). As the fiat reserves backing the tokens are held in the traditional banking system, it can be difficult to maintain transparency about the value of such reserves. Tether attempts to provide transparency about the full reserve (not fractional reserve) by issuing statements from accountants with visibility into the reserve banking accounts which are then matched against the publicly visible token issuances on the various blockchains. Milestones. July 2014 - Realcoin announced by Pierce, Collins and Sellars

6th October 2014 - First tokens issued on the Bitcoin blockchain via the Omni Layer. 20th November 2014 - Renamed to “Tether”. January 2015 - USDT trading enabled on Bitfinex, other crypto exchanges follow suit. 5th January 2018 - USDT tokens supported on Ethereum. 27th November 2018 - Direct customer (non-exchange) fiat redemption enabled. 4th March 2019 - USDT tokens supported on TRON. 31st May 2019 - USDT tokens supported on EOS. 29 th July 2019 - USDT tokens supported on Liquid Network

Utility. Designed to be backed 1:1 by fiat (US dollars), Tether tokens (USDT) are minted or burnt (destroyed) as the reserves held by Tether (the company) increase (via deposits) or fall (via claims against the tokens). In this way, Tether tokens are seen as a stable store of value in an otherwise highly volatile crypto-currency ecosystem. The advantage in holding Tether is that it removes the friction in exiting fully into the banking system (with time delays and additional fees required for processing), allowing traders to quickly re-establish positions and react to sudden changes in market movements. Significant Features. - Redeemable for a single fiat US dollar from Tether (the company). - No requirement to exit into the banking system (with associated time lag and fees), whilst retaining a relatively stable US dollar peg, making USDT a point of stability in volatile cryptocurrency markets. References: .

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Introduction Video

What are Stablecoins? What is Tether? | 99Bitcoins

Stablecoins are an attempt to create a cryptocurrency that isn’t volatile. A stablecoin’s value is pegged to a real world currency, also known as fiat currency. For example, the St ...

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attach_money Product Analysis

4.8

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Whitepaper

A digital token backed by fiat currency provides individuals and organizations with a robust and decentralized method of exchanging value while using a familiar accounting unit. The innovation of blockchains is an auditable and cryptographically secured global ledger. Asset­backed token issuers and other market participants can take advantage of blockchain technology, along with embedded consensus systems, to transact in familiar, less volatile currencies and assets.


The whitepaper of Tether is 20 Pages long.

The most influencial keywords are: Tether, Exchange, Users, Asset, Bitcoins, Exchanging value, Fiat currencies, Accounting, Accountability, and Market.

file_downloadOpen Whitepaper
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Close Competitors

  • 1.) Dai

    Dai is a cryptocurrency that is price stabilized against the value of the U.S. Dollar. Dai is created by the Dai Stablecoin System, a decentralized platform that runs on the Ethereum blockchain.

  • 2.) TrueUSD

    TrueUSD claim to be a stablecoin that you can redeem 1-for-1 for US dollars.

  • 3.) Digix Gold Token

    Every DGX = 1 Gram of gold. You can own, save and transact Gold in tokenised form - keeping secure private ownership of your digital assets.

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Product analysis

Tether was founded back in February 2015. never released their source code, which makes it an intransparent and hidden project with no guarantee that their product works or is being developed.
Organization wise, Tethers Development is Centralized and is being developed under the lead of Stuart Hoegner.

The consensus on which the Tether network is run is called pow, while the underlying algorithm is called None.
In the current state of Tether currently is Working product

group Community Analysis

2.3

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Communities & Events

Tether is a digital token pegged to fiat currency through a 1:1 reserve backing.

view_list r/Tether Subreddit
person 4,557 Subscribers
directions_run 117 Active Users
create 1 Daily Posts
speaker_notes 1 Daily Comments
linkOpen Subreddit

There is no official Telegram Channel for USDT yet

view_list Channel
person Members
directions_run Online
linkOpen in Telegram

Official Twitter account for Tether

view_list @Tether_to Channel
person 35,997 Followers
11.15.2019
17:50
Tether Submits Intent to File Motion to Dismiss Frivolous Class Action Law Suit https://t.co/fvhtk8lcgx 53 favorite
11.07.2019
22:26
Tether Response to Flawed Paper by Griffin and Shams https://t.co/5DymkhOOHX 87 favorite
10.29.2019
16:30
Tether has just burned 370m Tether USDt from its Omni authorized but not issued pool. tx: 4719ba0875fb852ad01c5cfa0b6a206283f5a7241f3bca73a5f223bc34dd7b77 132 favorite
10.29.2019
16:02
Tether has moved 370m Tether USDt as part of its Omni authorized but not issue pool to the issuance address in order to burn/revoke them, tx: 0efcdbc1116ac5f1e45b615929062080d15d7c57c519d72eca89f4ccac357136 102 favorite
10.29.2019
07:52
Within 2h Tether will coordinate with a 3rd party to perform a chain swap (conversion from Omni to ERC20 protocol) for 300M USDt. Tether total supply will not change during this process. Learn more about chain swaps https://t.co/abfgnELSvi 198 favorite
10.24.2019
13:21
How does a chain swap work? Review our latest post on chain swaps to learn more https://t.co/abfgnELSvi 132 favorite
10.05.2019
11:42
Tether Anticipates Meritless and Mercenary Lawsuit Based on Bogus Study https://t.co/CTgxd9blj2 179 favorite
09.16.2019
15:02
Tether has just burned 400m Tether USDt from its Omni authorized but not issued pool. tx: 49448e97bfc1ac4f3136035e76eb5dc1f5c1362aef7cf90546d39f406347ce09 172 favorite
09.16.2019
14:04
Tether will shortly move 400m Tether USDt as part of its Omni authorized but not issue pool to the issuance address in order to burn/revoke them. 161 favorite
09.12.2019
06:19
In few hours Tether will coordinate with a 3rd party to perform a chain swap (conversion from Omni to ERC20 protocol) for 300M USDt. Tether total supply will not change during this process. 274 favorite

There are no events for Tether in the next 3 Months

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Google Trends Analysis


The Google Trends chart displays the search interest on google in Tether relative to its peak over the last year. A rising chart shows growing interest int he project.

code Development Analysis

1.0

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Github Analysis


Tether is not open source and can therefore not be analyzed. This will automatically give Tether a rating of 1 as a penalty for not being open-source.

attach_money Price Analysis

4.6

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Price Prediction

$ 1.009659 (-0.02%) arrow_drop_down

Predicted USD Market Price in 24h

$ 1.009676 (-0.02%) arrow_drop_down

Predicted USD Market Price in 14d

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Converter USDT - USD

Convert between USDT and USD with the live Tether prices, aggregated from all big exchanges that trade Tether.


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Market insights

Volume from exchanges is considered untrusted if the exchange has little reputation and no License but reports suspiciously high trading volume in particular coins.

account_circle Team Analysis

4.8

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Team

Lead

Jl Van Der Velde - Chief executive officer


supervisor_accountSocial Network Links

Members (5)

launch

Stuart Hoegner

General counsel

launch

Giancarlo Devasini

Chief financial officer

launch

J. L. van der Velde

Ceo

launch

Philip Potter

Cso

Matthew Tremblay

Cco

remove_red_eye Product Review by Coinpaper

3.1

How things stand

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Since this stable coin was brought into mainstream, it has managed to capture a considerable amount of cryptocurrency exchange activity. According to CoinMarketCap, Tether is used in about 40-80 percent of all transactions happening on the leading exchanges of Binance and Huobi. A large part of the transactions see the purchase of Bitcoin using Tether tokens. In August 2019, amidst the devastating performances of many cryptocurrencies, Tether managed to record its all-time high activity with a total market capital reaching up to $4 billion (Cuen, 2019).
However, Tether’s history has not always been on the right track. In November 2017, a cyber-attack on the Tether network resulted in a theft of about $31 million tokens. This aroused the security concerns in the stablecoin users. A little fast forward to January 2018, and Tether saw another controversy which was partly based on the bad faith demonstrated by the parent company Tether Ltd. As Tether, and all other stable coins, are backed by a real-world currency which is supposed to be deposited in a bank account as a collateral. Each Tether token is paired by a US Dollar. Tether Limited did not allow the necessary audit, which is carried out to ensure the real world reserves are maintained, to take place. This lack of transparency gave rise to the winds of suspicion and mistrust (Seth, 2018).
Tether Foundation is the main body which supplies Tether tokens. They used to state that every Tether token is backed by a real world US Dollar deposited in reserves. However, it was soon found and alleged that this is not the case. As much as 25% of the Tether valuations come from loans taken to fill the reserves which is a worrisome development. Contrary to their popular claim that each Tether is backed by a US Dollar, it has been established now that these claims were evidently empty. According to a Tether’s spokesperson and the official website as well (under the Transparency description), it has been revealed that instead of 100% US dollar reserves, it has ‘cash equivalents’. Interestingly, these ‘cash equivalents’ are presumed to be loans and other cryptocurrencies as well. So the whole concept of pairing the cryptocurrency to a stable fiat currency goes down the drain, because the ‘equivalent-reserves’ are themselves highly volatile in nature. So, in short, Tether has also become an unregulated crypto-currency and the investors might be in for a surprise; perhaps, not a good one (Coppola, 2019).

1.4

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Tether’s concept has been published in detail in the whitepaper provided by the parent company Tether Limited. The main code is developed by the company itself under the supervision of the software engineer Craig Sellers. The technology itself relies on the already developed major Blockchain of Bitcoin. Using the open source Omni Protocol, the team was able to build a token whose value could be pegged to US dollar and whose transactions could be monitored using the Bitcoin network.

3.0

Product description

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Among the several limitations of the cryptocurrency technologies, one is that they are plagued by huge price swings in their valuations which render them slightly impractical for day-to-day trading. Keeping this concern in mind, another breed of cryptocurrency came into light known as stablecoins. Stablecoins are backed by real-world fiat currencies like US Dollar or Japanese Yen. Tether (USDT) is a Blockchain cryptocurrency backed by the US dollar (Blockgeeks, 2018).
Tether was created with the sole intention of introducing a Blockchain based cryptocurrency which remains stable so that it could be used as a means of exchange rather than a tool of investment. It is essential to tackle the problem of wide price swings if we want to see a future where cryptocurrencies could be used for day to day basis. Tether aims to achieve just that. Its fixed price follows that of the US Dollar, which provides an incentive to the masses to spend token rather than ‘HODL-ing’ them (Frankenfield, 2019).

4.7

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Tether is a token issued on the ‘Omni-layer’ on the bitcoin network. The Omni protocol basically provides a platform for new products to be launched on the Bitcoin Blockchain . As a result, every omni transaction shares the same transaction hash as the Bitcoin transaction which produces it in the first place. There are other stablecoins launched on the Omni Protocol but Tether enjoys a massive share of 90% of Omni’s transactions (Blockgeeks, 2018).

3.5

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Tether was initially founded by Brock Pierce, the director of the Bitcoin Foundation, with the technical assistance of the software engineer Craig Sellers and the entrepreneurial skills of Reeve Collins. Back then, in July 2014, the project was named as Realcoin and its main objective was to develop a utility token that had a 1:1 parity with some real-world fiat currency (Jenkinson, 2018).
According to a recent development, it has been alleged in the leaked Paradise Papers, that Tether shares common management employees with the famous crypto-exchange Bitfinex. Giancarlo Devasini is currently serving as a director for both companies, while Phil Potter is a director at Tether and hold the position of Chief Strategy Officer at Bitfinex. This allegation has gave way to some serious suspicions regarding the transparency of Tether and the working and legitimacy of Bitfinex (John Ian Woong, 2017).

2.8

Pro-Contra

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Adoption Tether can be crowned as the pioneer of the stablecoins. For this reason, it is widely popular as almost every big cryptocurrency exchange offers Tether tokens.
Transaction cost Tether apparently charges zero fees for transactions between Tether wallets.
Enery consumption Stablecoins follow the price value of a real-world currency. The energy-intensive process of mining is not involved in the working of Tether and therefore is it energy-friendly.
Product availability The technology is in a fully working condition with many exchanges offering the coin while many Blockchain networks like Tron and Litecoin are starting to introduce the technology on their networks.
Exchange availability Tether is available on almost all the famous exchanges like Binance, Bitfinex, Kraken etc.
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Security Relatively low. The coin is relatively new/unproven.
Transactions per second Since Tether uses the Bitcoin Blockchain, its TPS is predominantly the same as Bitcoin i.e 6-7 transactions per second.
Transaction speed The transaction speed is much lower compared to other cryptocurrencies.
Decentralization Despite the currency being presented as a decentralized system, many concerns have risen recently which point out that Tether is more of an entirely centralized system. To understand this notion, consider this: Tether tokens are backed by US dollars which means every transaction must access the reserves to ensure the presence of the fiat currency. If this access is denied or the reserves are low in quantity, that might bring the whole system down.
Privacy Transactions with this coin are pseudonymous.

remove_red_eye Market Review by Coinpaper

3.1

Foresight

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Tether has been recently swarmed with controversial news which has painted the cryptocurrency with a scandalous brush. Many analysts claim that with the entry of many other stablecoins, the crypto-world might see a shift towards the new entrants. This move will be aggravated by the ongoing negative atmosphere that has surrounded the Tether coin.

2.1

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Tether was initially launched under the umbrella of the Tether Foundation to create a Blockchain based token that could bridge the gap between the cryptocurrencies and the real-world currencies. However, most of the news associated with Tether nowadays are of disreputable nature. Despite all the negative stories about Tether, the technology is being used in many projects. HubSpot is using Tether in projects like Select, Shepherd, Tooltip, Drop etc.

3.2

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Tether could potentially become the only stablecoin for cryptocurrency exchanges, but this is very unlikely, as many other stablecoin are being used by cryptocurrency exchanges.

3.8

Business

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An array of stablecoins have been launched since Tether has consolidated its position in the crypto-world. Some of the substitutes considered next to Tether token are USD Coin (USDC), Paxos Standard (PAX), Gemini Dollar (GUSD) and MakerDAO (DAI) Stablecoin (Puckrin, 2019).

2.0

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Tether has a number of notable industry partners, most of which ranges from trade exchanges to online banks. Industry supporters include Omni, Poloniex, Ambisafe, MegaChange etc., while many trade exchanges like Bitfinex, Bittrex, HitBTC etc. are listed as Tether’s partner. Recently, Bahamian Bank has unveiled a relationship with Tether Limited (Baker, 2018).
In another interesting development, Tron’s CEO, Justin Sun has announced to adopt and introduce Tether token on the Tron network (De, 2019).

4.6

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Tether’s community, essentially, is limited to users only. As there is not much development required on the Tether technology, there are no such efforts by the community members to improve the technology. The community only includes the frequent trade exchange users. According to some stats, around 40-80 percent of Bitcoin transactions are made through Tether token.

3.3

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The main representative body behind Tether is the Tether Foundation whose current CEO is JL Van der Velde while Stuart Hoegner serves as the General Counsel for the firm.

3.0

compare_arrows Exchanges

Markets

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# Exchange Pair Price 24h Volume Trusted
# 1 Poloniex USDT/BTC $ 1.002113 $ 26,536,213 check
# 2 Binance USDT/USDC $ 1.005218 $ 14,073,843 check
# 3 Binance USDT/ADA $ 1.004155 $ 10,843,024 check
# 4 Bitfinex USDT/USD $ 1.005000 $ 10,227,142 check
# 5 Bitfinex USDT/BTC $ 1.005034 $ 8,914,074 check
# 6 Poloniex USDT/ETH $ 1.004047 $ 7,355,568 check
# 7 Binance USDT/XLM $ 0.969577 $ 6,578,497 check
# 8 Binance USDT/TUSD $ 1.003663 $ 6,110,523 check
# 9 Binance USDT/PAX $ 1.010536 $ 5,599,676 check
# 10 Binance USDT/ATOM $ 1.003728 $ 5,169,633 check

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