Overview of Tether
- Tether Limited and the tether cryptocurrency are controversial because of the company’s alleged role in manipulating the price of bitcoin, an unclear relationship with the Bitfinex exchange, its apparent lack of a long-term banking relationship, and the company’s failure to provide a promised audit showing adequate reserves backing the Tether token. Author David Gerard was quoted by the Wall Street Journal saying that Tether “is sort of the central bank of crypto trading …
- Tether has confirmed the main finding of our paper.” (Paolo Ardoino did not respond when contacted for comment via Twitter, but Tether general counsel Stuart Hoegner issued a statement to TNR calling the study “roundly discredited.” He claimed that “there is no causal relationship between the issuance of Tethers and market movements up or down” and that “Tether is always 100% backed by Tether reserves, which include traditional currency and cash equivalents.”)*
- Tether is called a stablecoin because it was originally designed to always be worth $1.00, maintaining $1.00 in reserves for each tether issued. Nevertheless, Tether Limited states that owners of tethers have no contractual right, other legal claims, or guarantee that tethers will be redeemed or exchanged for dollars. On 30 April 2019 Tether Limited’s lawyer claimed that each tether was backed by only $0.74 in cash and cash equivalents.
- Tether claims that it intends to hold all United States dollars in reserve so that it can meet customer withdrawals upon demand, though it was unable to meet all withdrawal requests in 2017. Tether purports to make reserve account holdings transparent via external audit; however, no such audits exist. In January 2018 Tether announced that they no longer had a relationship with their auditor.
- tether reminds us that we are formed as much from pain as from delight and that, in her ability to look back upon her past, upon today’s terrible and compelling news, the contemporary poet is like an astronaut, able to regard the world “from a great height a witness to what most of us cannot bear to see. -Paisley Rekdal
- Tether’s website says that it “allows you to store, send and receive digital tokens person-to-person, globally, instantly, and securely for a fraction of the cost of alternatives.” Holding client funds as Tether means exchanges can cut down on transaction costs until a client wants to redeem their funds as dollars.
- Tether is also facing a major class-action lawsuit accusing it of contributing to “the largest bubble in human history”: In 2017, Tether printed a flurry of its currency in patterns that appeared to be linked to rises in Bitcoin, as an influential scholarly paper later found.
- Tether is flexible and can be used to solve all kinds of interesting problems; it ensures UI elements stay where they need to be, based on the various user interactions (click, scroll, etc) and layout contexts (fixed positioning, inside scrollable containers, etc).
- Tether price today is $0.999671 USD with a 24-hour trading volume of $96,277,621,213 USD. Tether is down 0.13% in the last 24 hours.
About Tether Created in October 2014, Tether was the first stablecoin in existence, and remained the sole stablecoin in the market until March 2018. By introducing fiat currency-digital cash to the bitcoin and Ethereum blockchains, Tether makes a significant contribution to a more connected ecosystem by adding digital currency benefits, such as instant global transactions, to traditional currency and traditional currency benefits, such as price stability, to digital currency. Tether is disrupting the legacy financial system by offering a more modern approach to money. With a commitment to full transparency and compliance, Tether is the most secure, fastest and lowest cost way to transact with money.
From setup to Parental Controls, Tether provides a simple and intuitive user interface to check the status of your networking devices and configure more personal settings for your network. TP-Link Tether provides the easiest way to remotely access and manage Router, xDSL Router, or Range Extender through your iOS or Android devices.
(Another Tether-issued stablecoin is on the way, this time pegged to the Chinese yuan.) 7, with 78,100 active wallets for USDT and nearly 21,300 for the ethereum-based counterpart USDTe. Blockchain data from CoinMetrics tallying a full year of transactions detected an annual peak in activity on Aug. In fact, according to data site ETH Gas Station, Tether paid nearly $261,000 in fees to ethereum mines just to run this secondary version of the stablecoin.
As it so happened, two groups began to work on the idea that the Bitcoin blockchain could be a platform used for issuing fiat currencies – a startup called Realcoin and the cryptocurrency exchange Bitfinex. Eventually, the two projects would merge efforts, resulting in the formation of Tether Limited.
The two academics who wrote it looked at Tether activity over the last two years and concluded that the price patterns are “most consistent with the supply-based hypothesis where Tether is used to provide price support and manipulate cryptocurrency prices,” and bitcoin specifically. The University of Texas at Austin’s paper supports this conclusion.
Tether is committed to operating in a secure and transparent way, while adhering to all government compliance and regulations. This includes the regulations and economic sanctions that prohibit transactions from persons and entities connected to certain high-risk jurisdictions.
History of Tether
- In 2017, a group of independent researchers from the International Consortium of Investigative Journalists released the Paradise Papers.
- In 2017, CZ noticed the sudden rise in coin offerings and decided to make a coin of his own.
- In 2017, the value of Bitcoin surged as hype and speculation about its potential shot into overdrive, forcing up the value of a coin to almost $20,000 before it eventually crashed.
- In 2018, when Tether announced its banking relationship, Tether had a market cap of $1.8B and produced the letter shown below from Deltec Bank as evidence that it was fully reserved at that time (note, however, the illegible scrawl and absence of any clearly legible signatory name).
- In 2019, company announced Binance Jersey, an independent entity from its parent Binance.com exchange, with the aim to expand its European influence.
- In 2019, New York State prosecutors took Tether’s parent companies Ifinex Inc.
- In 2019, the Office of the Attorney General for the Southern District of New York announced an investigation into Tether Ltd, which as brought ghosts of the past into the mainstream conversation again.
- In 2020, its closest competitors include Ethereum, Ripple (XRP) and Tether.
- In 2020, the total market value of digital currencies has increased by 106.74 % according to CoinMarketCap.