Tether Price Today, Live Charts, Current Marketcap and other stats

Tether is a unique digital token that is issued by Tether Limited, a company that is associated with the Bitfinex trading platform. This token is built on top of the Omni Layer digital currency protocol, which operates on the Bitcoin blockchain.

The main objective of Tether is to provide stability to traders and members of the cryptocurrency market. This is because Tether is claimed to be backed by US dollars that are held on Tether Ltd bank accounts, which makes its price less volatile when compared to other cryptocurrencies. However, this claim has yet to be fully proven and as a result, the U.S. Commodity Futures Trading Commission issued subpoenas to both Tether and Bitfinex. Additionally, Tether Ltd has emphasized that the Tether token is not a financial instrument and that the owners of Tethers do not have any rights for legal claims or guarantees against losses.

Despite these concerns, Tether has become a very popular token and is widely used by a number of exchanges, particularly those that only deal with cryptocurrency-to-cryptocurrency trades. The total value of Tethers in circulation has reached $2.8 billion. During the summer of 2018, around 80% of Bitcoin volume was traded in Tethers.

One of the main advantages of Tether is its stability. Since its value is pegged to the US dollar, traders can use it to hedge their positions against the volatility of other cryptocurrencies. This makes Tether an attractive option for those who want to minimize their exposure to market fluctuations.

Tether can also be used for various purposes such as remittances, online purchases, and trading. Many cryptocurrency exchanges offer Tether as a trading pair, which enables users to buy and sell other cryptocurrencies using Tether as a base currency. This provides a convenient and efficient way for traders to move funds between different cryptocurrencies without having to convert back to fiat currency.

One of the criticisms of Tether is that there are doubts about whether it is truly backed by US dollars. Tether Limited has claimed that it holds enough US dollars to back all the Tethers in circulation, but this claim has not been independently verified. Some people in the cryptocurrency community have raised concerns that Tether may be operating a fractional reserve, which means that they may not actually hold enough US dollars to back all the Tethers in circulation.

Despite these concerns, Tether has remained a popular token and has been widely used in the cryptocurrency market. Its stability and convenience have made it an attractive option for traders who are looking to minimize their exposure to market volatility. However, it remains to be seen whether Tether can continue to maintain its stability and credibility in the long run, given the concerns that have been raised about its backing.