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by abstractbarista 2456 days ago
This is misleading because Tether isn't a legitimate cryptocurrency. It is a token that is issued and tracked by storing metadata on the Bitcoin network.

From Tether's whitepaper; "...Tether Limited is the only party who can issue tethers into circulation (create them) or take them out of circulation (destroy them). This is the main process by which the system solvency is maintained." (Yikes!)

There has been much interest in whether "Tether Limited" actually holds enough USD to back all tokens in circulation. I bet they don't. In any case, it's not something I'd want to hold on to.

It is useful for imitating the value of USD in order to buy cryptocurrencies on exchanges which have been shunned by the conventional banking system due to various regulations or insecurities. That's about it.
2 comments
Qworg 2456 days ago
Tether Limited does not, per the NYAG investigation and Tether's executives' own admissions.

https://finance.yahoo.com/news/tether-loaned-usdt-investors-...

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abstractbarista 2456 days ago
Reading wallet.tether.to/transparency shows they are issuing Tether tokens on more networks than just Bitcoin (Omni layer) now. This includes Ethereum, Tron, Eos, and Liquid (in order of volume). I find this rather interesting. Many blockchains support issuing tokens, but the security of their respective networks is more concerning as the networks get smaller.

I would only hold Tether issued on the BTC or ETH networks, and only for a short period of time in order to purchase the cryptocurrencies I wanted. Simply holding Tether is unwise.

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