Tether (USDT) – Is It a Good Investment?
What is Tether?
Tether is a cryptocurrency token that serves as a Stablecoin. It is based on the Omni protocol (open-source software that interfaces with blockchains). The ticker of Tether is USDT.
According to its creators, every USDT is backed by one US-Dollar that is held in reserve by them.
Tether Limited, the company behind this asset, has been promising audits of their Dollar reserve, but to this day did not allow anyone independent auditing firm to verify their claims. The people behind this coin are the same as behind the cryptocurrency exchange Bitfinex.
Who founded Tether?
The precursor of Tether was called “Realcoin”; it was renamed to Tether in November 2014.
The Paradise Papers leaks brought to daylight that Bitfinex officials Philip Potter and Giancarlo Devasini are the people that registered Tether Holdings Limited in the British Virgin Islands in the year 2014.
Can it be mined?
No. It is a token which is supposedly backed by USD on a 1:1 ratio. Tether Limited frequently releases new USDT on the market..
What differs it from other Cryptocurrencies?
Tethers purpose is to function as a stable coin. It is aimed to hold its value close to 1$ and provide low volatility. Its use-case is a hedge and store of value in times of price fluctuations.
How much is it worth today?
What is the total and the circulating supply?
The maximum supply of USDT is infinite in theory and the circulating supply at the time of writing is 2,417,140,814 USDT.
Where can you buy USDT?
You can buy USDT on several cryptocurrency exchanges, most notably Bitfinex, Binance, Huobi, and OKEx.
Can USDT be sold for cash?
Some cryptocurrency exchanges have a USDT/USD trading-pair, for example, Kraken.
It is fully developed, and no significant changes to its code are expected.
Verdict and Rating
0/10The fact that Tether refused auditing is highly concerning. They did promise audits to back up their claims that they have the USD-reserves to match the supply. But no audit took place until the day of writing.
Another thing that is concerning is the impression that the people behind Bitfinex tried to disguise their involvement in Tether.
It received subpoenas from the U.S. Commodity Futures Trading Commission in December 2017. Additionally, Bitfinex was also criticized multiple times for unethical behavior like wash-trading, spoofing, and market manipulation.
If it turns out that it doesn’t hold the necessary USD-reserve that is necessary to back up their tokens the value of USDT will fall to Zero faster then you can spell USDT.
DisclaimerThe above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
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