The Roller Coaster Story of Tether (USDT): Carving the History of the Stablecoin Pioneer

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Bittime -In the volatile crypto space, Tether (USDT) stands strong as a stablecoin that offers investors a handle on a storm of price fluctuations. While Bitcoin and Ethereum dominate with giant market capitalizations, USDT with a market capitalization of 70 billion US dollars in 2022 has managed to carve out its own existence. 

However, USDT's journey from its early stages to the mainstream has been a story full of twists and turns, marked by innovation, controversy, and ultimately, widespread adoption.

The embryo of Tether can be traced back to 2014, when a trio of visionaries, Brock Pierce, Reeve Collins, and Craig Sellars, gave birth to “Realcoin”, the forerunner of USDT. This pioneering stablecoin was issued on the Bitcoin blockchain using the Omni Layer Protocol. 

Fate then brought it into the hands of Bitfinex, a Hong Kong-based exchange, in 2015. Under Bitfinex's ownership, USDT entered a new era marked by increasing popularity and ever-tighter integration.

Tether (USDT) The Stablecoin Pioneer

As a pioneer of stablecoins, Tether is built on a concept introduced by Mastercoin (Omni) in 2012. Born out of concerns about the high volatility and convertibility that are often crypto stumbling blocks, Tether offers a solution in the form of a token that is pegged 1:1 to the US dollar held at the bank. 

Tether Ltd, as the central authority, holds control over the issuance, redemption and maintenance of this crucial reserve ratio. The Tether network goes beyond borders, spanning multiple blockchains, from Ethereum's ERC-20 tokens to Bitcoin's Omni layer.

Well-known exchanges such as Bitfinex, Bittrex, Binance, Coinbase, Kraken, and others are pioneers in USDT adoption. They use USDT as a superior alternative to traditional fiat currency, so they no longer need to rely on conventional banking. The close relationship between Tether Ltd and Bitfinex further strengthens the integration and utility of this token, making it increasingly in demand.

The Fall of Tether (USDT)

However, Tether's journey has not always been smooth. Since its inception, this company has often been in the spotlight of controversy, especially regarding transparency in proving the adequacy of reserves supporting USDT. 

The surprising revelation in 2019 that their tokens were not 100% collateralized by US dollar deposits, but rather by a combination of other assets and receivables from loans, sparked skepticism among investors.

Tether proved their resilience by successfully rising from challenges. The termination of banking relations with Taiwanese partners in 2017 due to KYC (Know Your Customer) problems did not stop them. 

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The Rise of Tether (USDT)

Tether found new banking partners in Puerto Rico and the Bahamas, and their stablecoin actually surged in popularity during the subsequent crypto bull run. Tether, which was originally designed based on Bitcoin, has now expanded to various leading blockchains, further strengthening its position in the crypto universe.

One of the key factors to Tether's success is its unique proposition as a fiat-collateralized stablecoin. With each Tether token pegged to one unit of fiat currency or precious metal, Tether ensures that each stablecoin maintains its market price very close to one US dollar through 100% reserve asset backing. 

Tether's tight control over token circulation, strict due diligence, and token redemption mechanisms form the backbone of its operations. Although tokens operate freely within a decentralized network after purchase, Tether ensures its authority over the initial issuance and redemption of tokens.

Tether's journey from startup to one of the largest cryptocurrencies is a compelling story, full of innovation, twists and turns, and constant evolution. As Tether continues to expand its reach across multiple blockchains and strengthen its position in the crypto world. 

Conclusion

The history of Tether (USDT) also reflects the crypto landscape which continues to develop rapidly. This is an important note in the crypto journey, as a reminder of the importance of innovation, transparency and adaptability in a dynamic and challenging environment.

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How to Buy Tether (USDT) on Bittime

You can buy and sell  Tether (USDT)  in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.  

Tether (USDT)  is available on Bittime with  the USDT/IDR market pair . To be able to buy  USDT/IDR  at Bittime,  make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. Learn  the complete guide on how to buy Tether (USDT) on Bittime .  

Monitor price chart movements  of Tether (USDT) , Ethereum (ETH) ,  Solana (SOL)  and other cryptos to find out today's crypto market trends in real-time on Bittime.  

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DISCLAIMER: This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.