In fact, since it was first launched, there has been controversy over the legality of the USDT stablecoin, which is backed by banks holding full U.S. dollars in a one-to-one ratio to each token issued. In fact, many of the current attempts to have Tether verify its holdings are just excuses, and they keep explaining why a full audit would be too complicated. "The latest news in the world of Tether is very disturbing at the moment, as the organization has almost admitted that its stablecoin is no longer pegged to the US dollar. The official description of Tether has changed, and many investors want to know the equivalent value of USDT and US dollars? Here is Let the editor explain to you the relationship between USDT and the US dollar.
##USDT is equivalent to the US dollar. 1USDT is equivalent. = 1 USD. Each currency = how much USDT, which is equivalent to its unit price. Because Tether is supported by legal currency, users can still trade without being affected by the price fluctuations of most blockchain assets. Transactions are conducted on the blockchain asset market. Tether, the issuing company of Tether, claims that its legal currency storage account is regularly audited to ensure that each Tether currency in circulation is backed by a corresponding US dollar. It is public and can be queried at any time. In addition, all Tether transaction records will be published on the public chain. There are no fees for transactions between Tether accounts or between wallets that store Tether coins. . A transaction service fee is required when converting Tether to legal currency.
Users can conduct fund inquiries on the Tether platform to ensure transparency. Users can wire U.S. dollars to a bank account provided by Tether, or via Exchange for USDT. When redeeming USD, users can also exchange Bitcoin for USDT at the exchange. USDT is issued on the Bitcoin blockchain based on the Omni Layer protocol. Digital assets. The biggest feature of USDT is that it is equivalent to the same amount of US dollars. USDT is designed to be a replica of legal currency on the digital network, making it a good value-preserving token in the volatile cryptocurrency market.
How about USDT?
USDT is the stablecoin with the highest market value. As the leading stablecoin, USDT has always been loved by investors, and USDT trading pairs will be preferred on exchanges. However, due to the The issuer has repeatedly stated that USDT reserves are sufficient, but has never provided proof, and there are certain risks. Investors need to look at investment projects rationally. In most cases, USDT exists in Ethereum. On the blockchain. In fact, more than 50% of USDT tokens operate as ERC-20 (Ethereum) tokens. This involves liquidity pools, wallet storage, transaction volume, and ease of access due to trading. Fast, USDT is especially useful for traders, offering a variety of options and catering for fast transfers from one blockchain to another
Since cryptocurrencies are known for their volatility, switch to USDT quickly. The ability to reduce a lot of potential risks when the volatility of cryptocurrencies starts to increase, its relative stability is often used as a stablecoin, and some people may think that it has nothing to do with it. The traditional fiat banking system is very close. Compared to Bitcoin, it is a centralized, permissioned and trust-dependent blockchain that ultimately plays an important role in the digital economy. Similar to other stablecoins, Tether fills the gap between traditional finance and cryptocurrencies and is likely to be around for the foreseeable future.
In fact, many people have expressed concerns about Tether over the years, and some critics often accuse Bitfinex and Tether of running a fractional reserve system, similar to the practice of today's traditional central banks. Just earlier this year, these concerns were largely addressed when the New York Attorney General and Bitfinex settled their 2-year long dispute. But while the legal standoff is over, that hasn't stopped rumors about it from spreading. Tether remains the most liquid stablecoin among cryptocurrencies, with a market capitalization of over $60 billion.
The above is the detailed content of Is USDT equivalent to the US dollar? A popular science guide on the relationship between USDT and the US dollar. For more information, please follow other related articles on the PHP Chinese website!
