The Omni Layer Protocol issued the cryptocurrency asset known as Tether through the Bitcoin blockchain. The Tether Platform is where investors can buy and sell USDT tokens. Like Bitcoins, you can store, transfer, and spend USDT with service providers and merchants that accept it. Tether Limited is the company which issues tokens and it has reserves of U.S. Dollar which backs each unit of USDT. That is why the symbol for the token is USDT because it signifies U.S. Dollar.
The cryptocurrency was created as a Bitcoin alternative which was more stable and reliable. It is supposed to make national currency transfers a lot easier because each transaction has a fixed U.S. Dollar rate attached to it. This is a way around having any type of government regulation or intervention taking place. The great thing is that USDT is not subjected to those unreliable audits of cryptocurrency wallets and exchanges. Rather than Proof of Solvency, Tether uses Proof of Reserves instead because each token is backed by a reserve of USD.
Within the Proof of Reserves system, you can check how much Tether is circulating by using certain online tools to analyze the Bitcoin blockchain. You can see how many U.S. Dollars are currently stored in reserves because the bank balance and professional ongoing audits are published. So far, the value of a USDT token is about the same amount as one U.S. dollar., give or take $0.10. For example, the current value of a token is $0.9868.
USDT is a cryptocurrency ranked number 25 in the world for highest market capitalization. It’s already gotten a market cap that has surpassed $2 billion and it’s continuing to grow each day. The most popular cryptocurrency exchanges are allowing people to trade USDT. Therefore, it is certainly a valuable cryptocurrency that is a worthy risk for investment.
The token has been around since November of 2015. The governing corporation is based in Hong Kong but it has numerous offices located in the United States. The currency exchange most known for trading USDT is called Bitfinex. This is the 3rd biggest cryptocurrency exchange worldwide and it is the one that Tether is connected to the most.
In June of 2017, USDT transitioned away from the Bitcoin blockchain system and went over to the Litecoin blockchain system. However, in November of 2017, thieves stole $31 million worth of Tether tokens. This caused trading to stop for a while and a hard fork to be done so that the stolen tokens could not be traded. On December 19th, 2017, trading resumed again.