Tether is a stablecoin. A Stablecoin is a cryptocurrency that is one on one connected to an under laying traditional currency. In most cases this under laying currency is the US dollar. Tether USD is widely used on crypto currency exchanges.
Tether US dollar was started as an OMNI token, but is now also available as an ERC20 token on the Ethereum Blockchain. Running on the ethereum chain makes it much faster and cheaper to send then the token that was used earlier on the omni chain. Exchanges now charge you with a $1 withdrawal fee, while on omni its was $5.
Besides USD there are more fiat currencies available that can be used tokenized. The most recent addition was Offshore Chinese Yuan.
Tether is incorporated in Hong Kong.
Low transaction costs and high speed transfers make a token like this one preferable over the under laying coin. Consider sending some dollars from one exchange to another by banks. This might take days ! Special when you have to withdraw to your own bank account, then send them to the bank account of another exchange. With these tokens on the blockchain its just a matter of minutes.
With the amount of Tether dollars available on exchanges, more markets are made using this dollar as base currency, making the price of cryptocoins less depended on the price of Bitcoin and Ethereum.
Official project link: Tether.to
This stablecoin is a token on Omni, and also available on the Ethereum Blockchain.
Thoughts on Tether
This stable coin has a good reputation so far. But there are always rumors that they don’t have all the dollars backing the tokens. Till now it looks like the company behind this tokenized dollar is aware of the regulations governments want to make, and they follow all these regulations, to stay out of trouble.
Last update of this page : 11-10-2019