Tether is one of the leading crypto companies and the issuer of the biggest stablecoin, USDT. Though it is well known for its token pegged to the USD, there has been the release of other tokens by Tether.
The current bearish market has made many cryptos fizzle out while there have been concerns about the future of BTC and other top altcoins. Stablecoins however remain unshakeable because of their stable price.
In this post, we’ll focus on the top stablecoin issuance company, Tether. We’ll see the number of tokens in the crypto market created by Tether. Before then, let’s know more about stablecoins.
What are Stablecoins?
Stablecoins are the type of altcoins that help to correct the volatility in the price of other cryptocurrencies. They are crypto-equivalent to fiat currencies like US dollars.
Crypto investors who needed something that could reliably hold value over time without volatility and allow them to easily transfer that value invest in these tokens.
Stablecoins are useful for traders and investors in crypto trading. It is easier for them to move money in, out, and between crypto exchanges with Stablecoin, without waiting for banking procedures.
These coins have made it easier for investors to hold a part of their crypto portfolio like cash. This makes it possible to readily purchase any coin at any time without depending on bank services.
What You Should Know About Tether
Tether is a stablecoin cryptocurrency that is hosted on the Ethereum and Bitcoin blockchains, among others. Its tokens are issued by the Hong Kong company Tether Limited. It is in turn controlled by the owners of Bitfinex.
Tether is called a stablecoin because it was originally designed to always be worth US$1.00, maintaining $1.00 in reserves for each tether issued. Tokens issued by the company has the symbol ‘T’.
Tether’s token was formerly known as Realcoin then UST before its recent name, USDT. The Tether company is based in Hong Kong and was launched in 2014 by Brock Pierce, Reeve Collins and Craig Sellars.
The stated purpose of the first Tether token is to combine the unrestricted nature of cryptocurrencies — which can be sent between users without a trusted third-party intermediary — with the stable value of the US dollar.
What are the Tether Tokens?
The number one Tether token today is the USDT. It is ranked 3rd among thousands of cryptocurrencies today. The USDT is pegged to the US dollar which make it a stablecoin- have a stable price & without volatility.
Other tokens launched by Tether are tokens pegged to other fiat currencies. The list of national currencies in Tether’s list include Mexican Pesos, Chinese Yuan, Euros, and the Great British Pounds.
Tether tokens
What You Should Know about the Tether Tokens
The list of Tether tokens pegged to fiat currencies as at the time of writing are discussed below. They are
1. USDT
USDT is a stablecoin (stable-value cryptocurrency) that mirrors the price of the U.S. dollar. It is the first and most recognized Tether token.
The token’s peg to the USD is achieved via maintaining a sum of commercial paper, fiduciary deposits, cash, reserve repo notes, and treasury bills in reserves that is equal in USD value to the number of USDT in circulation.
USDT is the number 1 stablecoin and the 3rd overall cryptocurrency today only behind Bitcoin and Ethereum. The price of USDT is always $1.
2. EURt
EURt is a Euro-pegged stablecoin supported by Tether, the company that operates USD Tether (USDT). EURt is a one-to-one representation of the Euro currency. The digital token is pegged to the fiat currency, allowing users to access a robust infrastructure of asset-backed monies.
EURt can be used for leverage trading using up to 100x leveraged contracts, working around traditional financial barriers to entry and working around hyperinflation in failing economies.
Other use cases include sending money across borders without red tape & buying and selling assets on various exchanges, decentralized applications and blockchain-based games.
3. CNHT
CNHT is a Tether token pegged to the Chinese fiat currency, Yuan. CNHT is run on top of the ethereum blockchain as an ERC-20 token.
The CNHT as stablecoin is an offshore yuan created to boost the circulation of the fiat currency. The CNHT reserve is stored in a bank in Belgium.
The stablecoin work like its other fiat-currency-counterparts.
4. MXNT
MXNT is a Tether token pegged to the Mexican fiat currency, Pesos. MXNT is launched on Polygon, Ethereum, and Tron networks.
Tether believes that a digital Peso like MXNT will be extremely beneficial to Mexico’s remittance industry. MXNT is pegged 1:1 to the Mexican Peso. This means that each MXNT token carries a value equivalent to one Peso.
Tether believes that there is a distinct opportunity to offer a less expensive alternative for asset transfer in the Mexican region. The company cited that 40 percent of Mexican companies want to ‘adopt blockchain and cryptocurrencies in some form. This shows that blockchain and crypto demand amongst Mexican corporations is rising.
5. GBPT
GBPT is a Tether token that would be pegged to the Great British Pound. The stablecoin would be officially launched this month. Trading of the 1:1 pegged stablecoin is expected to begin in July on the Ethereum blockchain.
Tether said it’s upcoming pound-pegged token should provide a faster and less costly option for asset transfers. It will serve the same purpose as the earlier listed tokens pegged to other national currencies.
Why People Buy/Sell Stablecoins such as Tether Tokens?
Listed below are the reasons why investors tend to buy/sell or hold Stablecoins such as the ones issued by Tether tokens.
1. Stablecoins have unique benefits, like using them to transact directly via smartphones with no bank account needed.
2. Holders of stablecoins can put their money into a more stable currency if they live in a country where inflation is rampant. This will help to hedge against the inflation.
3. Many crypto exchanges also doesn’t charge a fee when exchanging stablecoins. It can therefore be used to get around the fees associated with others.
4. Stablecoins can be used to liquidate your store of Bitcoin. You can exchange BTC for USDT, then exchange it for fiat currencies such as dollars, pounds, etc.
Also Read- Is Tether Safe?
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