Tether (USDT) is a unique digital currency created to ensure stability in the high volatility crypto asset market.
According to the creators of this digital currency, each Tether is supported by the US dollar (USD). So each Tether has a US dollar equivalent. However, digital currency traders can use Tether to transfer USD currencies across platforms quickly and without the need to convert any other digital currency traded on the market.
However, a large part of the digital money market community argues that Tether is not transparent enough, posing a threat to new investors in the market. Although the creators of Tether say that each Tether is worth USD, many people are skeptical.
Following these concerns in the market, the US Commodity Futures Trading Commission (CFTC) sent a subpoena to both Tether Limited and its crypto currency exchange, Bitfinex, to submit Tether’s financial records on December 6 last year.
Let’s take a quick look at Tether’s past…
Tether was developed on Bitcoin’s block chain using a structure called the Omni Layer protocol. The digital currency was first introduced under the name Realcoin, but was later renamed Tether in 2014.
Apart from being a stable digital currency, Tether’s goal is to allow investors to interact with other digital assets in the digital money market. As it is supposedly stable, it is possible for investors to use Tether as a value store that maintains profits in volatile markets or in other digital currency trading.
Tether’s Company Is A Little Mysterious
Ronn Torossian, a spokesman for Bitfinex and Tether, recently announced that the CEO of both companies is Jan Ludovicus van der Velde, after a growing debate over where Tether’s headquarters are and who is in charge of management.
Tether’s website says the company’s headquarters are currently located in Hong Kong. The website also states that Tether has additional offices in Switzerland, but will not disclose any information about these addresses.
It is worth mentioning that many people on the market, including the high-level participants of the digital currency community, have raised concerns about Tether many times. The main source of these concerns is generally related to Tether’s transparency and lack of documentation to support the claim that each Tether unit is USD equivalent.
In response to these suspicions, Tether issued a document claiming that each of its units was equivalent to USD. After reviewing this document, Lewis Cohen, an independent attorney, said the document does not guarantee that each Tether is backed by the USD.
How to Buy Tether
Following the allegations, some large crypto currency exchanges decided to withdraw their support for Tether. However, Tether is currently only available on a number of exchanges, including Kraken, Poloniex, Bitfinex, Bittrex and EXMO.
Traders may be able to store Tether units in supported hardware wallets or online wallets that can be opened on the official website of the digital currency.