What is Tether?
Tether (USDT) is the first and most popular fiat-collateralized stablecoin on the global market. Tether's reserves back the USDT price and is fixed at a 1:1 ratio to the US dollar. The USDT token can be considered a blockchain-based substitute for the US dollar. Its main advantage is the price stability mechanism, which makes it a practical means to perform digital transactions without being concerned about price and value changes.
Tether is one of the top 10 digital assets by market valuation as of December 2021, with a market cap of about $77 billion. Based on the trading volume and circulating supply, it is also the stablecoin most often used by DeFi users and crypto investors, among those tethered to the US dollar.
Tether combines the strength of blockchain technology with the stability and security that fiat currencies are recognised for. Compared to traditional banking and finance, USDT transactions offer nearly instantaneous settlement times, cheaper transaction costs, and better transparency, as there are no middlemen like banks and financial organisations.
Tether tokens enjoy a one-to-one peg with fiat currencies, for example, 1 USDT = 1 USD, which keeps the price of Tether firmly tied to the US dollar. To get an equivalent number of Tether tokens in the cryptocurrency wallets, users can deposit fiat money into Tether's bank account. Users can then use, trade, and keep these USDT tokens like other cryptocurrencies, without having to worry about sudden drops in the Tether price, which could cause them to lose all their capital.
What makes Tether unique?
The distinctive quality of USDT is that Tether guarantees its value will always be fixed to the US dollar. It assigns the same amount of USD to reserves each time it issues new USDT tokens, ensuring that cash and currency equivalents entirely back USDT.
Who is behind Tether?
Brock Pierce, Reeve Collins, and Craig Sellars introduced USDT in 2014; at the time, it was known as “Realcoin”.
Brock Pierce is a well-known entrepreneur who co-founded several well-known ventures in the crypto and entertainment sectors. He co-founded Blockchain Capital, a venture capital business, in 2013, and by 2017, it had garnered more than $80 million in funding. Pierce was appointed director of the Bitcoin Foundation in 2014; the organisation was created to support and advance Bitcoin. Pierce is a co-founder of Block.one, the organisation that created EOS, one of the most popular cryptocurrencies available today.
For the first two years of Tether's existence, Reeve Collins served as its CEO. He previously co-founded many prosperous businesses, including the online advertising network Traffic Marketplace, the entertainment company RedLever, and the gaming website Pala Interactive. As of 2020, Collins takes over as CEO of marketing and advertising technology startup SmarMedia Technologies.
Other than working on Tether, Craig Sellars has been a member of the Omni Foundation for over six years. On top of the blockchain of Bitcoin, its Omni Protocol enables users to create and trade smart-contract-based assets and currencies. Sellars has also held positions with many other cryptocurrency businesses and foundations, including Bitfinex, Factom, Synereo, and MaidSafe.