What are the transactions of Tether (Is Tether stable?)

08/18/2023 10:42 • Blockchain Buzz • 116 views

According to official sources, according to the rules and regulations of Tether transactions: when using digital currency for purchases on exchanges, a corresponding margin is required; if the price drops below 1 USDT, it cannot be purchased. At the same time, according to relevant regulations, fiat currency or encrypted assets can be used for buying and selling, so for investments, caution should be maintained for familiar token types and risk control (such as through contracts, leverage, etc.).

Tether is the world’s first payment system project based on blockchain technology, with a total circulation of 10 billion. It has now entered the mainstream market and its market value exceeds many mainstream public chains such as Bitcoin and Ethereum.

Is Tether stable?

Tether (USDT) is a globally renowned stablecoin, anchored at a 1:1 ratio with the US dollar.

According to CoinMarketCap data, on May 15, 2019, Tether’s market value exceeded $40 billion; in early June, it reached a height of over 50 billion RMB. However, with the continuous decline in the price of Bitcoin, Tether’s market share has begun to decline.

Does Tether have the hidden risk of “legal digital assets”? Can Tether raise funds through ICOs and become a reliable tool for investors to invest in cryptocurrencies? Does Tether have any risks and how can they be prevented? The issue of Tether’s rights has always plagued the development of the entire blockchain industry. As the world’s largest decentralized exchange, both Tether and Circle have faced attention due to suspected misappropriation of user tokens for illegal financing. In early 2018, Tether announced the launch of the Ethereum ERC-20 standard token called TetherDollarsToken (abbreviated as DAI). But this release did not happen as scheduled because the official did not disclose a specific timetable. (BlockBeats)

What is the stability and security of Tether like? Tether is currently composed of three main aspects: 1. Value storage mechanism based on smart contracts: Tether transfers its transaction volume to the chain and destroys it, thereby reducing the supply of all Tethers held in circulation. 2. Value storage mechanism based on private networks: In order to solve these trust issues, Tether adopts a hybrid model to issue new fiat currencies. In addition, Tether also uses smart contracts for payment settlement, which can generate only one Tether token per second, including all other types of tokens and corresponding functions such as transaction fees. 3. “Third-party custody service provider support” and “third-party brokers” can both utilize the custody solution provided by Tether, allowing customers to access their accounts at any time and securely perform operations such as receiving, exchanging, converting, and fee collection.

The main purpose of Tether is to facilitate cross-border trade, improve payment efficiency, reduce costs, and enhance liquidity, allowing more people to accept Tether as a form of payment.

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What are the transactions of Tether (Is Tether stable?)

Is Tether stable?

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