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https://youtu.be/a67KSMw95dA

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Tether: The Future of Money or a Crypto Scam?

Tether is a cryptocurrency that claims to be backed by the US dollar, meaning that each Tether token (USDT) is supposed to be worth one dollar. Tether is one of the most popular and widely used stablecoins, which are digital currencies that aim to maintain a stable value by being pegged to real-world assets. According to Tether’s website, “Tether converts cash into digital currency, to anchor or tether the value to the price of national currencies like the US dollar, the Euro, and the offshore Chinese yuan.”

Tether aims to provide a stable and transparent alternative to traditional fiat currencies, which are subject to inflation, manipulation, and corruption. Tether also enables fast and cheap cross-border transactions, as well as access to global markets and financial services for millions of people who are excluded from the current system.

But how does Tether work? And what are the benefits and risks of using it? In this article, we will explore the history, technology, and controversies behind Tether, one of the most traded and influential cryptocurrencies in the world, as well as its price prediction for 2023

How does Tether work?

Tether was launched in 2014 by a company called Tether Limited, which is owned by the Hong Kong-based company iFinex Inc., which also owns the Bitfinex cryptocurrency exchange. Tether was originally based on the Omni protocol, which is a layer on top of the Bitcoin blockchain, but later expanded to other blockchains, such as Ethereum, EOS, Tron, and Solana. The idea was to create a token that could represent any real-world asset on the blockchain, such as dollars, euros, or gold.

The first asset that Tether issued was USD₮, a token that was pegged 1:1 to the U.S. dollar. The company claimed that every USD₮ in circulation was backed by an equivalent amount of dollars held in reserve by Tether Limited or its partners. Users could buy or sell USD₮ on Bitfinex or other exchanges, or redeem them for dollars through Tether Limited’s website.

Since then, Tether has expanded its support to several other blockchains, including Algorand, Avalanche, Bitcoin Cash’s Simple Ledger Protocol (SLP), Ethereum, EOS, Liquid Network, Omni, Polygon, Tezos, Tron, Solana, Kava, and Statemine. These transport protocols enable Tether to leverage the security and scalability of different networks while maintaining interoperability and compatibility. As of November 2023, Tether has a circulating supply of over 87 billion USDT tokens, with a market capitalization of over 80 billion euros.

But how does Tether work, and is it really backed by real dollars? In this blog post, we will explore the history, controversies, and challenges of Tether, and try to answer some of the questions that surround this controversial cryptocurrency.

Tether’s main use case is to provide liquidity and stability for traders and exchanges in the volatile cryptocurrency market. By using Tether, traders can avoid the hassle and cost of converting between fiat currencies and cryptocurrencies, and also hedge against price fluctuations. Tether is also used for remittances, payments, and other applications that require a stable digital currency.

Tether’s main selling point is that it is backed by real dollars, or other fiat currencies or assets, in a 1:1 ratio. This means that for every USDT in circulation, there should be an equivalent amount of dollars in Tether’s reserves. Tether claims that its reserves are held in bank accounts and loans that match or exceed the value of USDT in circulation.

However, Tether has been criticized in the past for a lack of transparency and verifiability of its claims.

What are the controversies and challenges of Tether?

Tether has been involved in several controversies and legal cases over the years, which have raised doubts about its legitimacy and solvency. Among the most noteworthy examples are:

• In 2017, Tether reported that hackers stole $31 million worth of USDT from its treasury wallet. Tether responded by issuing a hard fork to blacklist the stolen tokens and prevent them from being redeemed.
• In 2018, researchers from the University of Texas published a paper that alleged that Tether was used to manipulate the price of Bitcoin in 2017 when it reached its all-time high of nearly $20,000. The paper claimed that Tether was printed without proper backing and used to buy Bitcoin at strategic times to boost its price and create artificial demand.
• In 2019, the New York Attorney General (NYAG) filed a lawsuit against iFinex, accusing it of covering up an $850 million loss by using funds from Tether’s reserves. The NYAG alleged that iFinex had commingled client and corporate funds and engaged in fraudulent activities to hide its financial situation from investors and regulators.
• In 2021, Tether settled with the NYAG for $18.5 million and agreed to submit quarterly reports on its reserves and operations. The settlement revealed that Tether had not maintained full reserves at all times and that its reserves included undisclosed loans to third parties and other non-cash assets. The settlement also prohibited Tether from serving customers in New York.
• In 2021, the US Commodity Futures Trading Commission (CFTC) fined Tether $41 million for making deceptive assertions regarding its backing and liquidity. The CFTC found that between 2016 and 2018, Tether had only maintained full reserves during 27.6% of the days in that period and that it had failed to disclose that some of its reserves were invested in risky assets such as bitcoin. The CFTC also found that Tether had misrepresented its ability to process redemptions and withdrawals on demand.

These controversies and challenges have raised serious questions about Tether’s credibility and sustainability, and have exposed the risks and uncertainties of using a stablecoin that is not fully transparent, regulated, or audited. Some analysts and experts have warned that a loss of confidence or a regulatory crackdown on Tether could trigger a systemic crisis in the cryptocurrency market, given its dominant role and influence.

Why You Should Consider Tether USDt as a Stablecoin in 2023

Tether USDt is one of the most popular and widely used stablecoins in the crypto market. A stablecoin is a type of cryptocurrency that is pegged to a fiat currency or another asset, such as gold, to maintain a stable value. Tether USDt is backed by US dollars at a 1:1 ratio, meaning that each USDt token is worth one US dollar. Tether USDt aims to provide stability, transparency, and liquidity to the crypto ecosystem, enabling users to transact with traditional currencies across the blockchain without volatility or complexity.

Benefits of Tether USDt

Tether USDt offers several advantages to crypto users, traders, merchants, and exchanges. Here are some of them:

• Stability: Tether USDt maintains a stable value by being backed by US dollars held in reserve by Tether Limited, the company behind the token. Tether Limited publishes a daily record of its current total assets and reserves on its transparency page, showing that it has enough funds to redeem all USDt tokens in circulation. Tether USDt also undergoes regular audits by independent third parties to verify its compliance and solvency.
• Transparency: Tether USDt operates on multiple blockchains, such as Algorand, Avalanche, Bitcoin Cash, Ethereum, EOS, Liquid Network, Omni, Polygon, Tezos, Tron, Solana, and Statemine. These blockchains provide public ledgers that record every transaction involving USDt tokens, ensuring transparency and trust among users. Users can also verify the balance and issuance of USDt tokens on each blockchain through Tether’s website.
• Liquidity: Tether USDt is the most widely adopted stablecoin across major exchanges, OTC desks, and wallets. It is also one of the most traded tokens by volume, surpassing even Bitcoin in some cases. This means that users can easily buy and sell USDt tokens at any time and place, taking advantage of arbitrage opportunities and hedging against market fluctuations. Tether USDt also facilitates cross-border transactions and financial access in unstable regions where fiat currencies are not reliable or available.
• Innovation: Tether USDt is a pioneer and a leader in the stablecoin space, having launched in 2014 as the first blockchain-enabled platform to facilitate the digital use of traditional currencies. Since then, Tether USDt has been constantly evolving and expanding its scope and functionality, supporting new blockchains and use cases. Tether USDt also plays a vital role in the crypto ecosystem, bridging the gap between traditional and digital currencies and empowering growing ventures and innovation throughout the blockchain space.

Price Prediction for 2023

Tether USDt is expected to maintain its peg to the US dollar in 2023, as it has done since its inception. However, there may be some minor fluctuations due to market forces and external factors. According to various sources, the average price prediction for USDt in 2023 is around $1.007, which represents a slight increase from the current price of $0.9992 (as of August 2023). The highest expected price in 2023 is $1.259, which is expected to be achieved in December 2023. The minimum predicted price for 2023 is $0.9988.

These predictions are based on historical trends, technical analysis, expert opinions, and market sentiment. However, they are not guaranteed to be accurate or reliable, as there may be unforeseen events or developments that could affect the price of USDt in 2023. Therefore, users should always do their own research and due diligence before investing or trading with USDt or any other cryptocurrency.

Conclusion

Tether USDt is a stablecoin that offers stability, transparency, liquidity, and innovation to the crypto market. It is backed by US dollars at a 1:1 ratio and operates on multiple blockchains with public ledgers. It is widely adopted and traded across major platforms and regions. It is expected to maintain its value close to $1 in 2023, with some minor variations depending on market conditions.

If you are interested in learning more about Tether USDt or using it for your transactions or investments, you can visit their official website or follow them on social media platforms such as Twitter, Facebook, or Telegram. You can also find USDt tokens on various exchanges, OTC desks, and wallets that support them.

We hope you enjoyed this blog post and found it informative and useful. If you have any questions, comments, or feedback, please feel free to leave them below. Thank you for reading!

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TETHER USD price chart – USDT price today

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TETHER EUR price chart – EURT price today

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TETHER GOLD price chart – XAUT price today

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