Unlike most cryptocurrencies, which have their value intimately linked with supply and demand, Tether (USDT) is designed to resist volatility by having its value pegged to a non-volatile asset.
Created by Tether Limited, a company based in Hong Kong, Tether is supposed to represent a digital version of the US dollar, with each USDT unit supposedly being backed 1:1 with 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 allows cryptocurrency holders to avoid volatility by ‘tethering’ — the process of exchanging another cryptocurrency for USDT.
