|
|
In fact, USDT is not a newly emerged currency. Before its listing on OKEX and Huobi Pro, platforms like Bittrex, Poloniex, HitBTC, Binance, Kraken, Cryptopia, Liqui, and others already facilitated USDT trading.
The Value of USDT
In the current environment, the question of how to convert digital assets into fiat currency after cryptocurrency trading is particularly crucial. Currently, direct conversion of digital currency to RMB is strictly prohibited. The introduction of USDT provides a channel for converting digital assets into fiat currency.
USDT is pegged to the US dollar, with 1 USDT equal to 1 USD. Unlike other cryptocurrencies, it exhibits minimal fluctuations in its price, closely following changes in the US dollar exchange rate. Its stability is crucial for risk management, providing a safeguard during market downturns. For instance, if you hold BTC and it experiences a sharp decline, having USDT allows you to swiftly convert your assets, ensuring the preservation of your wealth.
Development History of USDT
Tether, also known as Tether USD (USDT), is referred to as 泰达币 in Chinese.
The company issuing USDT is Tether, formerly known as Realcoin, registered in the Isle of Man and Hong Kong.
In 2014, Realcoin was rebranded as Tether.
In 2015, Tether issued its stablecoin on the bitfinex and Poloniex trading platforms.
Tether, in the "Tether White Paper: A Fiat Token Utilizing the Bitcoin Blockchain for Trading" defined Tether as:
"Tethers are a form of digital currency pegged to fiat, and all Tethers are issued as tokens on the Bitcoin blockchain through the Omni Layer protocol. Each issued and circulating Tether is pegged 1:1 to the US dollar, with the corresponding amount of USD held in reserve by Tether Limited in Hong Kong (meaning one Tether token equals one USD). Through Tether Limited's terms of service, holders can redeem/exchange Tethers for their equivalent fiat currency or exchange them for Bitcoin. The price of Tether is always pegged to the price of fiat currency, and the reserve for issuing Tethers is always greater than or equal to the circulating supply. Technically, it continues to adhere to the characteristics and functionality of the Bitcoin blockchain."
USDT's Transparency
As an earnest team, Tether acknowledges in the "Tether White Paper: A Fiat Token Utilizing the Bitcoin Blockchain for Trading":
<+Image>
Tether is a decentralized digital currency, but we are not a perfectly decentralized company. We, as the centralized custodian, store all assets. |
|
Post time 13-2-2024 16:41:46