USDT (Tether) and the Future of Stable Cryptocurrencies
Despite the raging fires of Tether USDT-related scandal on social media and blockchain press, Guarda wallet sicks to supporting Tether. Currently, there is very little understanding of the story as such – we believe there is generally only a part of it being public. However, in this article, we will try our best to explain what Tether is and what caused an outbreak of negative news. What is Tether USDT?
Even if you are new to cryptocurrencies, you must know that the crypto market is highly volatile. Stablecoins, including Tether, are bound to solve this issue and offer a crypto asset that is mimicking the function of real-world cash. The main focus, as it is obvious from the name, is stability.
Tether is one of the biggest stablecoins, no matter what we think about it. The first USDT was minted way back in 2014. The tokens are backed by Dollars. Tether does not have its own blockchain – it functions within Bitcoin’s script on a layer called the Omni Layer.
Despite the fact that Tether USDT cryptocurrency is still widely used on the market as a convenient way of transferring value, there has been wild speculation about Tether not actually backing their tokens with real USD. The recent facts prove that these arguments are partially right. In March this year, it was reported that Tether updated their terms and conditions (without notifying the public). The recent update stated that the reserves may include assets other than fiat currency. This means, that Tether basically does not have enough reserves to cover the circulating supply of USDT. Besides, the relationship between Tether and Bitfinex (leading crypto exchange) remains quite strange. Bitfinex, as a matter of fact, used USDT crypto tokens to cover its losses.
The situation around Tether and Bitfinex quickly became the news headliner, with the crypto community being infuriated about the non-transparent stablecoin. Investors, too, now treat stable cryptocurrencies with extra caution.
Now, both Tether and Bitfinex are in a process with New York Attorney General’s adding to maturation if cryptocurrencies in general, as experts say.
How to get USDT?
If you are not afraid to use USDT, you can still get it on numerous cryptocurrency exchanges and withing Guarda wallets. USDT can be bought both with fiat currency and other crypto assets.
What does the future have in store for stablecoins?
We know that it might seem that the future of stablecoins now seems the opposite of bright. However, stablecoins still play a significant role in the future development of cryptocurrencies and blockchain technology in general. In our opinion, the key feature for the companies here would be operating in the most transparent way possible – Tether is a great example of what potentially could happen is the lack of transparency occurs. Audits conducted by the third-party, too, are a great addition to making the performance of stablecoins better.