Unlike most cryptocurrencies, whose value is closely linked to supply and demand, Tether (USDT) is designed to withstand volatility by having its value tied to a non-volatile asset. Created by Tether Limited, a company based in Hong Kong, Tether was supposed to represent a digital version of the US dollar, with each USDT unit supposedly backed 1:1 by USD in the company's bank accounts. The Tether Stablecoin is extremely popular among cryptocurrency traders, as there are no transaction fees when transferring USDT between Tether wallets and it allows cryptocurrency holders to avoid volatility through the practice of 'tethering' - the process of exchanging another cryptocurrency for USDT.