Tether (USDT) is a cryptocurrency known as a stablecoin whose value is pegged to the traditional currency issued by the company Tether Limited.
What is Tether (USDT)?
Tether is designed to provide a stable value and is used in the exchange and store of value. The main purpose of USDT is to create a way for users to access cryptocurrencies without experiencing large fluctuations in value compared to traditional currencies.
Tether is commonly used in cryptocurrency exchanges to exchange for other cryptocurrencies, making it easy for users to switch in and out of the crypto market without making a direct transaction with traditional coins.
Some users also use Tether as a temporary store of value while not participating in a transaction or when the value of another cryptocurrency is volatile.
However, it should be noted that Tether is not completely risk-free, and trusting its stable value requires reliance on the company Tether Limited and their ability to maintain value. :1 with traditional coins.
Tether (USDT) Price Movement History
Tether (USDT) is a stablecoin designed to maintain a stable value against a traditional currency like USD. Due to the nature of stablecoins, the value of Tether (USDT) does not experience large fluctuations like other cryptocurrencies. However, the USDT value can have small fluctuations in the range of very close to 1 USD.
It is also important to note that Tether Limited, the issuer of USDT, has encountered a number of regulatory and reliability issues in the past, and this may affect the value and confidence of USDT in the future. that time. To track and check the value of USDT over time, you can use websites, exchanges, or cryptocurrency value trackers to view charts and price history of USDT.
Tether Company Limited
Tether Limited is the issuer and manager of Tether (USDT), a leading stablecoin in the cryptocurrency market. The company was founded in 2014 and is headquartered in the British Virgin Islands.
Tether Limited is known as one of the pioneers in the field of stablecoins. The main goal of the company is to provide a stable cryptocurrency that holds its value almost unchanged compared to traditional currencies like USD. USDT is designed to support liquidity and use in cryptocurrency transactions, helping users avoid the sharp price fluctuations of many other cryptocurrencies.
An important point about Tether Limited is that the company claims that each USDT issued corresponds to one USD held in the company’s account. However, the company has encountered some controversy and assessed risks related to transparency and ensuring that all USDT is fully backed by real currency.
Tether Limited has become one of the largest stablecoin issuers in the crypto industry and USDT has become one of the most popular cryptocurrencies in the market. However, it should be noted that the company’s trust and transparency has been subject to scrutiny and scrutiny from regulators and the crypto community.
Legal Issues Tether Limited Has Encountered
Tether Limited has encountered a number of legal issues and controversies in the past.
Controversy over transparency
Tether Limited has faced controversy around its level of transparency and ability to ensure that each USDT coin is backed by a real coin. Although the company claims that each USDT corresponds to one USD in the company’s account, this has been met with suspicion and requires scrutiny and scrutiny from the regulator and the community.
Investigation from the New York Federal Reserve (NYDFS)
In 2019, Tether Limited and its parent company, iFinex Inc., faced an investigation from the NYDFS for concealing a large loss of their funds and improper management. The results of this investigation led to a settlement to pay $18.5 million and require the company to cease operations in New York.
The association with the Bitfinex exchange
Tether Limited and Bitfinex, a major cryptocurrency exchange, have a close relationship. These companies have faced accusations of using USDT to create artificial demand and increase the value of Bitcoin. This association has created concerns about transparency and potential risks for users.
The above issues have created controversy and concern in the crypto community and require Tether Limited to face pressure to provide more information and transparency about the company’s activities and processes. At the same time, regulators and supervisors are also closely monitoring and making clear regulations on the activities of stablecoin issuers like Tether Limited.