Tether (USDT) is a stablecoin pegged 1:1 to the U.S. dollar and designed to provide stability to the cryptocurrency market. Its functions include: stable store of value, digital dollar alternative, fiat currency transfer, collateral and hedging volatility. TEDA Co., Ltd. issues USDT and maintains equivalent US dollar reserves to support its value. The advantages are stability, liquidity, recognition and ease of use, but the disadvantages include centralization, limited transparency and regulatory risks.
What is Tether?
Tether (USDT) is a stable currency, also known as the digital dollar. It is pegged 1:1 to the U.S. dollar and is designed to provide stability to the cryptocurrency market.
The role of Tether:
How Tether Coin works:
TEDA Co., Ltd. issues USDT and maintains equivalent US dollar reserves to support the value of the token. When a user purchases USDT, TEDA Co., Ltd. increases its USD reserves and issues an equivalent amount of USDT. When users sell USDT, TEDA Co., Ltd. uses U.S. dollars to buy back USDT and reduce its U.S. dollar reserves.
Advantages of Tether:
Disadvantages of Tether:
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