What is Tether?

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Introduced in 2014, Tether is a blockchain-based platform created to simplify the digital utilization of fiat currencies. It aims to revolutionize the traditional financial system by adopting a contemporary approach to currency. Tether has gained traction by empowering users to engage in transactions involving conventional currencies on the blockchain, mitigating the usual challenges associated with digital currencies, such as volatility and complexity. As the pioneer in enabling the digital utilization of established currencies on the blockchain, Tether has democratized cross-border transactions, offering a familiar and stable accounting unit.

How Tether work?

Tether tokens are digital assets created on various prominent blockchains, such as Algorand, Avalanche, Bitcoin Cash's Simple Ledger Protocol (SLP), Ethereum, EOS, Liquid Network, Omni, Polygon, Tezos, Tron, Solana, and Statemine. These blockchain networks utilize open source software to facilitate the issuance and redemption of Tether tokens.
Each Tether token is fully backed by reserves, encompassing traditional currency, cash equivalents, and potentially other assets and receivables resulting from Tether's loans to third parties. The Tether platform maintains full reserves as long as the total value of circulating Tether tokens is less than or equal to the value of the reserves. Both of these figures are publicly accessible on a daily basis through our Transparency page.
Initially designed to operate on the Bitcoin network using the Omni Layer as its transport protocol, Tether leverages the stability and security inherent in the well-established Bitcoin blockchain. The Ethereum blockchain hosts Tether as an ERC20 token, serving as a more recent transport layer. This enables Tether tokens to be utilized in Ethereum smart contracts or decentralized applications. As a standard ERC20 token, it can also be sent to any Ethereum address. Given the availability of Tether tokens on various transport protocols, users must exercise caution when sending tokens to ensure they select the correct transport protocol by verifying the destination address.

What are the Tether tokens?

Tether tokens are assets that move across the blockchain just as easily as other digital currencies but that are pegged to real-world currencies on a 1-to-1 basis.
Tether tokens are referred to as stablecoins because they offer price stability as they are pegged to a fiat currency. This offers traders, merchants and funds a low volatility solution when exiting positions in the market.
All Tether tokens are pegged at 1-to-1 with a matching fiat currency (e.g., 1 USD₮ = 1 USD) and are backed 100% by Tether’s reserves.

Last News about Tether!

In a recent report, JPMorgan analysts expressed optimism about the recent growth in the cryptocurrency market but voiced concerns about the increasing dominance of Tether.
The analysts emphasized in the latest report that Tether continues to pose a risk due to its longstanding lack of compliance with regulations and transparency. Considering this persistent deficiency, they believe that the growing concentration in Tether over the past year has become a concern not only for stable cryptocurrencies but also for the overall cryptocurrency market.
Furthermore, the analysts added that issuers of stable cryptocurrencies worldwide are perceived to be facing a broad regulatory risk.
JPMorgan expressed concerns over the growth of Tether
Tether experienced significant growth last year, increasing its market value by 35%. The primary factor contributing to Tether's growth was the rapid loss of market share by its major competitor, Circle, due to issues faced throughout the year and regulatory pressures. As a result, Tether's stablecoin USDT is on the verge of reaching a market value of $100 billion. USDT has now reached approximately four times the market value of USDC.

Tether CEO Paolo Ardoino wasted no time in responding to JPMorgan's comments. Speaking to The Block, Ardoino criticized the global bank's analysts.

While acknowledging that JPMorgan addressing Tether and the stable cryptocurrency USDT was a positive development, Ardoino viewed the bank's mention of concentration as hypocritical, coming from one of the world's largest banks. The Tether CEO also hinted that it's not surprising for JPMorgan, attempting to establish itself in the stable cryptocurrency market, to be unsettled by the market dominance of USDT.
Ardoino further expressed his acceptance that Tether's growth might be perceived as a disadvantage by its competitors. However, he emphasized that the company has never had a negative impact on the cryptocurrency market. He also stated that Tether consistently collaborates closely with global regulators in guiding the cryptocurrency market.

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Reference:

Tether CEO'sundan JP Morgan Eleştirilerine Sert Cevap! - Bitcoin Sistemi

Tether

JPMorgan, sabit kripto para ihraççısı Tether’in artan hakimiyeti konusunda endişeli Yazar Investing.com

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