- Less volatile since it is pegged to the US dollar.
- Transaction fees are lower than fiat currencies.
- Allows users to move funds quickly by leveraging the power of blockchain.
- Allows users to transact in US dollar fiat denomination anonymously without the involvement or payment of fees to third-party vendors or middlemen.
- Tether does not require a bank account for transactions.
- Can be safely stored in cold wallets with private keys.
- Anything one can do with fiat currency can be done with USDT.
- Even though Tether claims to back funds with US dollars at all times, it has not been able to prove it through accounting and has even been the subject of lawsuits and has paid fines.
- Has been hacked in the past and $31 million worth of USDT was stolen in 2017.
- Faces strong competition from other stablecoins such as True USD (TUSD), and USD Coin (USDC).
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Tether Token (USDT) in a nutshell
The Tether token (USDT) is a stablecoin and is one of the most widely used cryptocurrencies since it is pegged to the US dollar at all times and can be paid where US dollar transactions are required. It is one of the easiest crypto substitutes for fiat-based currencies.
It has been widely adopted by the crypto-verse and is widely traded even surpassing Bitcoin in terms of total volume traded at one point.
USDT is used to provide an easy, quick and cheaper mechanism to send cross-border payments. USDT has become a mainstream cryptocurrency and has been the currency of choice where quick transfers are necessary and have the advantage of replacing fiat currencies. USDT has managed to establish its place among the top ten cryptocurrencies by market cap for a long time. It has achieved a total market cap of over US$77 billion (December 2021).
Tokenomics
The current circulating supply of USDT is 78.3 billion and the stablecoin is issued as and when requested by users.
Has Tether Token been audited and doxxed?
The USDT token has not been audited but is doxxed properly. Tether publishes regular documentation via press releases and is active on social media channels. Tether claims that the value of its reserves is published daily and updated at least once per day.
Trust & Fairness: 3
Exchanges & Swaps: 5
Tokenomics: 3
Community: 5
Overall Rating: 4
Detailed Review of Tether Token (USDT)
The Tether token can trace its roots back to 2012 when J.R. Willett explained the concept of Mastercoin. It suggested the possibility of building coins on top of Bitcoin. Brock Pierce, associated with Mastercoin would later become the co-founder of Tether.
Tether was initially called Realcoin in 2014 and was issued on the Bitcoin blockchain network using the Omni layer protocol. At the end of the year, in November 2014, the coin was renamed and rebranded as Tether.
The tokens are pegged with fiat currencies and the company claims that each USDT token is pegged and is exchangeable with the US dollar in a 1:1 ratio at all times. The main advantage of using USDT in daily transactions is the unmatched liquidity on most exchanges and also the ability to transfer quickly and at a lower cost than other field currencies. It also provides the unique ability to avoid the volatility of traditional cryptocurrencies but is fully secure and can be saved on cal wallets.
The USDT tokens are issued as stablecoins on multiple blockchain networks such as Algorand, Simple Ledger Protocol (Bitcoin Cash network), Ethereum, Liquid Network, Omni Protocol, Tron Network, and Solana. The Omni protocol version residing on the Bitcoin network is the original and most popular version of USDT. However, most exchanges now offer other variants of USDT such as those on Ethereum and Solana. There are other variants of the tokens such as EURT, SNYT, and XAUT.
Tether deposits and withdrawals are free. There is a US$ 150 one-time fee which is non-refundable and is used for verification purposes whenever an individual requests the issuance of new USDTs. In addition, there is a 0.1% fee per fiat deposit and a 0.1% or US$ 1000 fee whichever is greater on fiat withdrawals.
Even though Tether has been criticized a lot for its lack of audits, it has shown a willingness to display adequate transparency. The company regularly publishes a transparency report on its site.
A large amount of trade in cryptocurrencies worldwide is carried out in USDT and it has become the preferred currency for people looking to swap tokens and avoid the volatility associated with other crypto tokens.
Tether has been recognized as the official currency by the parallel government in Myanmar.
Tether has also released XAUT which is pegged to Gold, the world’s reserve in times of inflation and uncertainty. One XAUT token represents one troy fine ounce of gold on a London Good Delivery bar.
CryptoVegas has adopted USDT as a betting currency and customers can now play in the casino while using Tether.
Some of the most popular crypto payment gateways have incorporated USDT including NOWPayments, CoinsPaid, and DizPay. Some popular services accepting USDT as a payment method include Travala (hotel booking), Coinsbee (gift card service), Paxful (P2P marketplace), and Time magazine.
Where to Buy Tether Tokens?
The USDT token is available on most exchanges. It is a popular cryptocurrency and you can buy USDT on some leading exchanges including Gate.io, LBank, BitMart, Binance, Coinbase, OKEx, Kraken, Huobi, Bybit, Poloniex, FTX, CoinDCX, Pocketbits, Whitebit, HitBTC, BitStamp, Woonetwork, TokoCrypto, WazirX, Bittrex, Bitbns, eToro, Crypto.Com, and HotBit.
You can buy USDT either through cash via P2P (peer-to-peer), credit or debit cards, or through other cryptocurrencies.
If you already hold some crypto, then you can use the coins to purchase USDT directly through a supported decentralized exchange known as Uniswap. All you need to do is connect your wallet such as Metamask and select the appropriate coin pair that you wish to use for purchasing USDT (for example BTC/USDT or ETH/USDT). The decentralized exchanges are a quicker and easier method that guarantees anonymity as you do not have to deposit fiat currencies or complete a KYC process before purchasing the Tether Token. You can also use USDT for purchasing other altcoins through the decentralized route as explained above.
What Can you do With the Tether Token?
Hodl as a long-term investor: You could simply hodl it and gain from its price appreciation in the long term. The token can also be used for deposits on supported wallets and exchanges to generate an interest yield. The USDT is pegged to the US dollar and though it sees a slow rise, however, it will gain some value rise as the US dollar rises in value in the future.
Use USDT to pay for goods and services: The USDT cryptocurrency is supported by many payment carriers and can be used to pay directly for goods and services. It provides a quick and near-instant method for settling payments.
Swap USDT to other BSC/ETH tokens: You can use USDT and directly swap to other altcoins on a decentralized exchange. The process is quick and simple and is described below.
How to Swap USDT to other altcoins
Simply head over to a decentralized exchange and connect your wallet. Then, select the amount of USDT you wish to spend (factoring in transaction fees) and swap it for another crypto token. You will receive the tokens in the same wallet.
How to Buy USDT?
In order to buy USDT, you will need to use a centralized exchange or a decentralized exchange. Decentralized exchanges (DEXs) are simple and easy to use and do not require any registration. The process of token swap on DEXs has been explained above.
For purchasing USDT on a centralized exchange, you will need to register and create an account with the exchange and then deposit fiat currencies or crypto assets that can be used to buy USDT. You will need to complete the Know Your Customer (KYC) procedure to open an account on a centralized exchange.
Steps to open an account on a centralized exchange:
1. Go to the exchange site where USDT is listed and click on the Register button.
2. Then select your country of residence and proceed to the registration interface. Here, you will need to provide your email ID/phone number and a password that will be used to login into the newly created account.
3. Click on the agree to terms and conditions button and wait for the verification mail or message.
4. Clicking on the verification tab will take you to your new account. You will need to provide documentation such as a driving license, passport, or other government-issued IDs to confirm your identity and address. A utility bill and national ID may also be accepted in some cases. This process is known as the KYC regulation and it is in place to prevent the risk of fraud and to ensure that the site is safe for all users.
5. Once this additional step is completed, the exchange will activate your account and you can deposit funds to start trading. You can select fiat currencies or cryptocurrencies supported by the exchange to deposit funds to buy USDT.
6. Most exchanges support multiple payment methods including credit/debit cards, bank transfers, third-party payment processors, and P2P transfers.
Upcoming Events/Launches
Tether has revealed plans to launch on the popular altcoin networks Polkadot and Kusama. This would provide more options to developers building on these alternate blockchain networks.
Token Price
Since the USDT token is pegged to the US dollar, it will always remain at the exact same price as the US dollar value. Although it has sometimes fallen below the value of a dollar and risen above it, the currency quickly rebalances to arrive at the same value as a US dollar. The USDT token has established its position as a leading cryptocurrency. The USDT price can be checked on sites like CoinGecko and CoinMarketCap.
