The idea of Tether (USDT) originally started around January 2012 when a published whitepaper by software developer J.R Willet, described the possibilities of creating a digital coin through the already popular Bitcoin Protocol. Its creation originated with an idea that was implemented and later called Mastercoin. This idea birthed the Mastercoin Foundation (later renamed to Omni Foundation) which then became the technological foundation of what we now know as Tether (USDT).
Tether (USDT) is a block-chain based stablecoin whose crypto coins or tokens are backed by an equal amount of physical fiat currencies like the United States dollars, Euros, or the Japanese yen. It belongs to a category of cryptocurrencies called STABLECOINS. This set of digital currency is unlike the regular coins (like Bitcoin and Ethereum) whose prices are very volatile and susceptible to regular dwindling or rising on the cryptocurrency market.
Stablecoins like Tether (USDT) are stable; this means their prices remain constant and they have no volatility. This stability feature of Tether (USDT) is influenced by the collateralization of their reference currency or material. It means the price of Tether (USDT) digital price is proportionate to the price of the currency it is attached to and this may either be the US dollars, Euros, or Japanese Yen. So, as far as a dollar bill remains $1, the price of 1 Tether token remains $1.
In July 2014, Tether (which was then called Realcoin) was announced as one product on the Santa Monica startup which was founded by Brock Pierce, Reeve Collins, and Craig Stellar, and on October 6, 2014, the first set of Tether tokens was rolled out onto the Bitcoin Protocol for public use.
The creation of Tether was a tremendous success as it surpassed the pioneer cryptocurrency coin, Bitcoin, in trading volume in 2019.
Who are the Founders of Tether (USDT)?
There are 3 recognized founders of Tether (USDT); Brock Pierce, Reeve Collins, and Craig Stellar. The collaboration of these entrepreneurs birthed the idea of Tether to life and their works have not gone unnoticed in the cryptocurrency market as they have individually collaborated in several projects that have progressed the digital market.
Brock Pierce is an American entrepreneur who is known for his roles in Disney movies like the Might ducks and First kid, he later retired at age 17. After his retirement, he joined his brothers in founding Blockchain Capital (BCC) which then kick-started his role in the digital currency world.
Reeve Collins is also an American entrepreneur and a graduate of Marketing and Finance from Washington State University who served as the CEO of Tether for 2 years.
After serving as the cofounder of Tether for many years, Craig Stellar has now stepped aside and currently serves as an informal advisor. He has also embarked on other projects and is currently focused on creating open-source decentralized identity protocols and applications.
What is Tether (USDT) used for?
Tether has several uses, but it is most importantly used by crypto holders as a store for their coins and gains. After a successful trading activity, crypto holders transfer their gain and remainders into stablecoins to preserve their value. The stability feature Tether possesses allows them to transfer their coins to and keep their value as other altcoins are volatile.
It can also be used as a payment to send funds nationally and internationally. Since they are synonymous with US dollars, it is easier to transfer to one another; it also has a very low transactional charge compared to other coins. Its transfer per second rate is faster than the average financial operator and it only requires a fraction of seconds for a transaction to be successful.
Tether serves as a gateway into the crypto trading market, as it can be exchanged into hundreds of different altcoins, including bitcoins. Some banks and other private and public financial operators accept USDT as a form of payment; this means there is no need to carry around the dollar bill when a Tether (USDT) token can suffice.
What Is the Unique Point of the Bitcoin (BTC)?
For crypto users, one of the major setbacks that demarket crypto to new users is its volatility. Many crypto coins rise and fall within seconds and any of these actions can make or mar a holder; to tackle this issue, stablecoins like Tether were created.
Tether (USDT) allows the crypto community to hold their funds and perform other financial trades without the fear of volatility. This coin has created a haven for holders’ finance and has gained rapid attention amongst crypto lovers.
Asides from eliminating volatility and stability that plagues other crypto coins, Tether was also designed to bridge the gap and settle transparency and transactional charges between fiat currencies, cryptocurrencies, material resources transactions, and the users trading them.
Since it is pegged with the United States dollar and maintains a constant 1-to1 ratio in terms of financial value, volatility, transparency, and stability are solved.
How many Tether (USDT) is in circulation?
There are currently 61.99 billion USDT tokens in circulation with a market cap of over 62.019 billion dollars.
IS the Tether (USDT) Network secured?
The Tether network protocol is safe enough although, there have been several cases of hackers getting into their database and carting away millions of USDT tokens. The Tether limited promises that the network was built on top of a revolutionary open blockchain that adheres to strict security and obeys government rules and regulations, experts believe the claims and its security is not 100% verified.
The company itself has been controversial with the latest controversy occurring in March 2021. This period in 2021 revealed that the claim that states that every Tether is backed by an equal $1 was debunked and the released information showed that only 3% of Tether tokens was backed by cash.
Unlike Bitcoin and some other altcoins, USDT is not decentralized. Although they operate on blockchain technology, the financial affairs are run by a group of humans who we believe are trustworthy. This set of humans is said to be directly linked to Indexpairs.com, a popular exchange company that allows margin trading using USDT and is also popular for its constant controversies and financial crimes.
Despite this negative claim, the activities of Tether on the Crypto market were not affected and the news might have boosted it. Overall, the network is pretty secure as billions of financial traders still actively trade with it.
How do I buy Tether (USDT)?
Create an account with any crypto trading platform
There are over 250 active trading platforms that serve as an intermediary between you and the USDT tokens. To gain full access and become a member, sign up to the platform and provide some necessary details about yourself before you can proceed with trading.
The most common type of information includes full name, date of birth, email, banking details, a licensed ID to complete your KYC bio-data, and your profile picture.
These exchange platforms are user-friendly and often provide a short tutorial for beginners. They are also easy to access as they are listed on Apple stores on iOS gadgets and Playstore for Android.
Make your purchase
After successful sign-up and linking of the necessary information, you can then get your desired number of USDT tokens. These platforms are versatile enough to allow for different payment methods.
Paypal, Credit Card, and P2P are some of the popular payment methods. Choose any of these methods that are most suitable and get you USDT tokens.
It is advised you have your own personal Crypto wallet asides from the one provided by your exchanger for extra privacy and security. Ensure you choose strong passwords that have no relation to you or your family to avoid hacking and keep your wallet address private.
Which Cryptocurrency Wallet Supports Tether (USDT)?
The PTPWallet platform supports many cryptocurrencies simultaneously, such as USDT tokens. Because of its speed, flexibility, and unique features, it has grown to become one of the most used new platforms. In addition, users can easily use PTPWallet as their main USDT wallet as it offers a simple and interactive interface, making it easy to navigate its system.