What is Tether?
Tether is a US dollar stablecoin, meaning each Tether token (known as USDT) is designed to always be equal in value to 1 US dollar. Stablecoins aim to keep cryptocurrency valuations stable, as opposed to the wide swings observed in the prices of other popular cryptocurrencies. This allows stablecoins to be used as a medium of exchange and a mode of storage of value, instead of being used as a medium of speculative investments.
Tether claims that each token minted is always 100% backed by their reserves in the equivalent currency and cash equivalents (including other assets and receivables from loans made by Tether to third parties from time to time). For full transparency, the value of Tether's reserves are published daily. Tether uses blockchain technology as a safe and secure method to transfer the USDT token. Tether allows users to transfer funds with low transaction fees and at high speeds.
Real World Example
Users can send Tether tokens to one another using the ERC20 network. This is a decentralized method to transfer funds at low rates. Transfers can be sent directly without the need for a governing body or institution to mediate the transaction.
The CEO of Tether is Jan Ludovicus van der Velde, an unknown pseudonymous name.
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