Tether (USDT)
- Official Website: tether.to
- Definition: Tether is a stablecoin pegged to the US dollar, designed to maintain a 1:1 value ratio with USD.
- Category: Stablecoin, Token.
- What It Is: A cryptocurrency that provides price stability by being backed by fiat reserves.
- Function: Used for trading, remittances, and as a safe haven during market volatility.
- Analogy: Think of Tether as a digital dollar bill. It’s like cash but exists on the blockchain.
- Pros: Price stability, widely used in crypto trading, liquidity.
- Cons: Centralization, concerns over reserve backing.
- Controversies: Lack of transparency, legal scrutiny over reserves.
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This page was last updated on January 28, 2025.
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