hello readers, I hope everyone among you is doing great in health. In this article, I am curious about the top 3rd position of the best stable coin introduced by the exchange after being hacked and which issues back money to their users to their lost amount. That stable coin rose to the 3rd position among the billions of dollars cryptocurrencies.
Market Cap Rank as shown above on Coingecko widget is as of #3 and total market cap is around $9.4 Billion USD but the most anxious thing is that the past 24-hour volume is $36.6 Billion USD which is 4 times higher than the total market cap because of its high volatility and trading volume being tremendously high in various exchanges.
What is Tether used for?
The main purpose of USDT Tether token on Ethereum blockchain is to provide liquidity against a highly volatile market. The token is used to pegged to a fiat in the crypto world, which means there should be no loss of value or volatility in respect to other tokens and coins while trading cryptocurrencies. Due to its such property being Stablecoin, it becomes less risky than other typical cryptocurrencies.
Its relevance as an alternative to fiat is a big advantage that cannot be overemphasized cherished by traders and investors. For many investors, Tether provides an avenue to park their investments when the market is bearish, especially in countries where converting from cryptocurrencies to fiat is a hassle.
How does tether stay at $1?
Using a one-to-one ratio, 1 USDT = $ 1.00 Tether Limited holds fiat in reserves believed to be the equivalent of tether in circulation. In other words, Tether Limited serves as a trusted third party for the assets. Tether is still hosted by Ethereum Crypto Exchange and many other exchanges like TRON are adopting the stable cryptocurrency trend line to attract more and more users to their project. Below is shown about the Omni Consensus System adopted by the Tether issuer as Custodian Wallet.
The chart below shows the printing events of Tether from March 2017 to July 2018. Bitcoin price is shown in the Blue line however, Tether cumulative printed is shown in Redline. You can clearly see the increase in printing tether USDT between 2017 and 2018 of the crypto boom. However, the Tether USDT is tremendously increasing its supplies after being adopted by various exchanges like TRON Tether Adoption.
