Introduction
Stablecoins are often debated today as a value of stability for crypto investors, so they must deserve enormous trust.
Among them, one has huge popularity and a lot of controversy surrounding it.
USDT :
As a reminder, USDT is a stablecoin, a cryptocurrency designed to maintain a stable value relative to traditional currencies.
Unlike other stablecoins, USDT is pegged to the US dollar, so 1 USDT equals 1 USD
Tether Limited, a Hong Kong-based company, created this stablecoin in 2014.
On the cryptocurrency market, it has become one of the most popular and widely used stablecoins.
As a means of maintaining stability, Tether Limited claims that each USDT is backed by a reserve of US dollars equal to its value. The reserves are audited regularly to ensure their accuracy and protect users' funds.
Nonetheless, some have raised concerns about the transparency of these audits and questioned Tether Limited's ability to maintain full parity with the US dollar. Concerns that have never been addressed.
Despite these doubts, USDT remains widely used in cryptocurrency.
With a market capitalization of nearly $3 billion, it is by far the most capitalized stablecoin on the market!
A large number of exchanges use it to trade pairs with other cryptocurrencies, contributing to its large volume and capitalization.
Over the years it has spread to other large networks such as Ethereum, but it is far from the only one. Originally, it was only available on the Bitcoin blockchain.
As a stablecoin, it served as a safe haven until Silicon Valley Bank failed, which led to other stablecoins such as USDC and DAI detaching (only a weekend ago, to be specific) worth one US dollar.
Conclusion
The dominance Tether is showing makes it interesting for us to use its services, especially during the recent events that have given it new legitimacy. You can find USDT in CryptoSimple wallets!
