Back to Crypto: is USDT stable? – BTCMEX
Tether (USDT) stablecoin pros and cons. Was it behind the 2017 Bitcoin manipulations? Find out with BTCMEX.
A stablecoin is a type of cryptocurrency which value is pegged to another asset, like fiat money, another cryptocurrency or commodity. Stablecoins were created to overcome the issue of price volatility in trading decentralized assets. Tether (USDT) is the first and the best known stable coin amount others — trueUSD (TUSD), gemini dollar (GUSD), and USD coin by Circle and Coinbase (USDC).
As BTCMEX reported earlier, Tether along with the Bitfinex exchange were accused in Bitcoin price manipulations of 2017.
Tether is the best-known stablecoin with the current market cap of more than $4 billion. But its simple promise that every unit is “100% backed” by United States dollars has been brought into question many times in recent years. The traditional finance call it too shady, while the crypto maximalists see it to be too “traditional”. Regulators simply don’t know what to do with them yet.
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Please, note, that the article is a part of BTCMEX Blog, the views and opinions expressed here are the contributing author’s only, and do not necessarily represent the views of the company.
Julia Bulakh for BTCMEX