Universal Swap Tool for Fiat Money
Tether is a digital currency that serves the purpose of converting fiat into cryptocurrencies. Its creators claim to back every tether by USD in proportion 1:1. This scheme makes it very convenient to use tether tokens as a middleman tool for currency swaps especially when dealing with exchanges that do not accept fiat money.
Tether Technical details
Tether token’s ticker symbol is USDT, and its value is almost always 1 USD, so there is no point in using it as an investment tool. On the other hand, it provides its users with stability which is a significant advantage in the highly volatile market of cryptocurrencies. Unlike most other cryptocurrencies, tether is centralized, which means that it has a regulating company behind the currency.
Critics and accusations of Tether
There are several known issues with this currency though. First and foremost, tether lacks in audit backing of its resources. Although the company promised to audit its reserve account, no evidence of such an audit has been conducted yet. In November 2017 there was a theft of around 31 million USD worth of tether tokens, in response to which Tether announced that it would implement a hard fork upgrade of its system to prevent exploitation of the weakness.