Tether (USDT)

Market Statistics

Market Statistics can be found here.

About Tether (USDT)

Tether emerged in 2014 as the one of the pioneer stablecoins. This stablecoin, symbolised as USDT, upholds a 1:1 backing by the U.S. Dollar. The main purpose of USDT is to provide a way for traders and investors to hold a cryptoasset that is price-stable, reducing the volatility commonly associated with other cryptoassets like Bitcoin and Ethereum. Functioning as a bridge between cash and cryptoassets, USDT's issuer, Tether Limited, asserts that the quantity of USDT circulating mirrors their holdings in U.S. Dollars. Consequently, USDT strives to maintain a value consistently hovering around 1 U.S. dollar.


Website: https://tether.to/en/

Whitepaper: https://assets.ctfassets.net/vyse88cgwfbl/5UWgHMvz071t2Cq5yTw5vi/c9798ea8db99311bf90ebe0810938b01/TetherWhitePaper.pdf

Who are the founders of Tether (USDT)?

Tether (USDT) was launched by a company called Tether Limited. The founders are Brock Pierce, Reeve Collins and Craig Sellars.

Brock Pierce, recognised for his role in both the crypto and entertainment sectors, has co-established prominent projects. In 2013, he was a co-founder of Blockchain Capital, a venture capital firm that garnered more than $80 million in funding by 2017. He assumed the directorship of the Bitcoin Foundation in 2014, a nonprofit aimed at enhancing and advocating for Bitcoin. Additionally, Pierce contributed to the founding of Block.one, the entity responsible for EOS, a blockchain and issuer of the EOS coin.

Reeve Collins led Tether as its CEO during its initial two-year phase. His prior accomplishments encompass co-founding successful enterprises, including the online advertising network Traffic Marketplace, entertainment studio RedLever, and the gambling platform Pala Interactive. As of 2020, Collins directs SmartMedia Technologies, a company specializing in marketing and advertising technology.

Craig Sellars, in addition to his involvement with Tether, has devoted more than six years to the Omni Foundation. This organisation advances the Omni Protocol, which empowers users to generate and exchange smart-contract-based assets and currencies using Bitcoin's blockchain. Sellars has further contributed his expertise to several other cryptoasset ventures and groups, such as Bitfinex, Factom, Synereo, and the MaidSafe Foundation.

How does Tether (USDT) work?

Tether (USDT) pioneered the existing fiat-supported stablecoin model and currently stands as one of the most prevalent stablecoins. While USDT operates across decentralised networks, the sole duty of creating, redeeming tokens, and safeguarding the 1:1 deposit support lies with Tether Limited. According to Tether, when new USDT tokens are issued, an equivalent sum in USD is assigned to its reserves, thereby supporting its full backing by liquid assets. Consequently, each USDT token is redeemable for a corresponding U.S. dollar held under custody by Tether Limited. 

Yet, investors must be mindful that Tether's value has occasionally deviated from its intended peg, experiencing fluctuations both above and below. These variations have been influenced by factors such as confidence in the full backing of Tethers by assets held at Tether Limited. Additionally, investors should understand that complying with Tether Limited's know-your-customer regulations is necessary for the issuance and redemption of Tether assets including USDT.

How is the network secured?

Tether (USDT) does not have its own blockchain — instead, it is built on various blockchains including Algorand, Avalanche, Ethereum, EOS, Liquid Network, Near, Omni, Polygon, Solana, Bitcoin Cash's Standard Ledger Protocol, Statemine, Statemint, Tezos, and Tron and is secured by their respective consensus protocols.    


Just like other cryptoassets, it's crucial to understand the ways to securely store your Tether (USDT). Broadly speaking, there are two main types of crypto wallets for safeguarding your digital assets: hot wallets and cold wallets.

Hot Wallet

A hot wallet is a digital wallet connected to the internet. While this convenience suits quick transactions with your USDT, it heightens exposure to hacking and theft risks. Hot wallets can appear as mobile apps, desktop programs, or online services.

Cold Wallet

In contrast, a cold wallet is rarely linked to the internet. This makes cold wallets more secure than hot ones, though less user-friendly. Cold wallets are typically hardware wallet devices.


Underlying reserves                                        

Over the years, Tether Limited's transparency has been questioned due to the lack of regular and comprehensive audits of its reserve holdings. The company's limited disclosure of its financial practices and reserve holdings has led to suspicions about the actual backing of USDT tokens and contributed to uncertainty within the crypto community. Without proper auditing, investors have limited visibility into the backing of USDT. If Tether Limited were to face financial difficulties, insolvency or have banking difficulties, there may be a liquidity risk associated with a lack of funds to redeem USDT tokens, potentially causing a loss in value for holders.

Regulatory environment                                        

The stablecoin market has been subject to increased regulatory attention globally. Regulatory agencies are apprehensive that stablecoins such as USDT could affect financial stability and might be exploited for illegal purposes like money laundering and fraud. The simplicity of their use and ability to transcend borders contribute to these concerns. Regulatory actions could impact the operations and value of USDT.                                        

Market Sentiment                                         

While USDT is designed to maintain price stability, there could still be price fluctuations, especially if the underlying reserves are not as stable as expected or if market sentiment changes.                              

Technology or security risks                                        

Like any blockchain-based asset, USDT could be vulnerable to technical risks, including hacks, smart contract vulnerabilities, and software bugs that could compromise the security and integrity of the stablecoin. These issues could lead to financial losses or a loss of confidence in USDT.


USDT faces competition from other stablecoins. A shift in preference towards alternative stablecoins could affect the demand for USDT.

Dependence on Tether Limited

Regulatory actions against Tether Limited could impact the issuance and operation of USDT.

The due diligence summary is not intended to be a substitute for any legal, tax or financial advice and you should obtain your own independent legal, tax, financial or other advice before deciding whether the purchase and/or sale of the cryptoasset is suitable to your unique circumstances.

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