Tether (USDT) is a type of cryptocurrency known as a “stablecoin.” It is designed to maintain a stable value by pegging it to a reserve of fiat currency, usually the US dollar. This means that for every USDT token issued, Tether claims to hold an equivalent amount of US dollars in reserve, helping to keep its value close to $1.
USDT is widely used in the cryptocurrency market for trading and as a means of transferring value, due to its stability compared to more volatile cryptocurrencies such as Bitcoin or Ethereum. It also allows traders to move between positions without having to convert back to fiat currency.
How did USDT start and who supports it?
Tether (USDT) was launched in 2014, and was initially known as “Realcoin.” It was launched by Tether Limited, which was founded by a group of fintech entrepreneurs, including Roger Ver, Peter Charles, and Douglas Finn.
Tether backs itself with a fiat reserve, with the company claiming to hold amounts equal to the value of the cryptocurrencies it issues. In the case of USDT, it aims for each USDT token to be backed by one US dollar, meaning there is one dollar in reserve for every USDT in circulation.
However, Tether has been criticized and accused of lacking transparency, with some parties demanding independent reporting to confirm the actual existence of reserves. In recent years, Tether has provided some transparency by publishing periodic reports on its reserves, but the debate over the level of support and reserves continues.
What networks support USDT?
Tether (USDT) operates on multiple blockchains, making it available for use in different environments. Among the networks that support USDT are:
1. Ethereum (ETH) – USDT on the Ethereum network is known as an ERC-20 token.
2. Tron (TRX) – USDT on the Tron network is known as TRC-20.
3. Bitcoin (Omni Layer) – USDT initially used the Omni protocol that runs on the Bitcoin network.
4. EOS – There is also a version of USDT on the EOS network.
5. Algorand – Also supports USDT.
6. Solana - USDT is available on the Solana network.
7. Polygon - Also used on Polygon Grid.
The multi-network that USDT operates on allows users to trade with it on different platforms and with multiple options for speed and transaction costs.
