Tether (USDT) is the largest and most widely used stablecoin, pegged to the US dollar, playing a crucial role in trading and market liquidity, amid ongoing controversies.
What Is Tether?
Launched in 2014, Tether is a stablecoin designed to maintain a stable value equal to $1 USD. It’s issued by Tether Limited, linked to crypto exchange Bitfinex, and operates across multiple blockchains, including Ethereum and Tron.
Reserves and Controversies
Claims that each USDT was backed by dollars in reserves were questioned after investigations revealed commercial paper and affiliate loans among Tether’s reserves. In 2021, Tether paid an $18.5 million fine to the New York Attorney General and agreed to increase transparency regarding its holdings.
Market Role and Future
Despite controversies, Tether remains a liquidity pillar, with over $90 billion in circulation. It is heavily used in trading, DeFi protocols, and as a safe haven during market volatility. Its success may continue if trust and transparency improve.
Tether continues to dominate the crypto market despite disputes, owing to its ubiquity and liquidity. Its long-term leadership depends on trust and transparency.
