15 October 2018, AtoZMarkets
Tether is a cryptocurrency issuer with a twist- as per Bloomberg, with tokens that are said to have been designed for stability.
Having been backed by a dollar for each token in their bank accounts -as the issuer claims- the prices for the coins kept around $1 through its history, compared to Bitcoin, whose price keeps fluctuating from day to day.
As the coins more flexible in transferring them between cryptocurrency exchanges and variant online platforms, as they they do not have to move through banking systems, which makes them favourite coins for traders to deal with, and that is were they gained their reputation from for being “popular”.
The stable prices of the coins contributed in making them handy tools for betting on the direction of other cryptocurrencies.
Due to the reports that informed the coins are fully backed by dollars, demands for the company to provide “conclusive evidence” of its holdings to the public have increased recently, with questions raising about the relationship of Tether with Bitfinex- which is regarded to be one of the most prominent cryptocurrencies exchanges.
There is a talk also that trading in Tether’s coins on Bitfinex –which is run by the same CEO as Tether- helped prop up the price of Bitcoin.
What sides investors care about in Tether?
The coin occupies a huge position on cryptocurrency exchanges, in spite of its total market value of $2.7 billion, which is described as “modest” as per analysts.
Market data compiled by CoinMarketCap.com revealed that the coin to became “the second most traded digital currencies among their counterparts after Bitcoin as of Oct. 14”, as per media resources.
While there are many other “so-called stable coins”, none of which have come close to challenging USDT’s popularity.