Tether

USD Tether, or USDT, was invented as a stable crypto-currency. The idea is to bridge the gap between fiat and crypto by inventing a new crypto currency, USDT, which is pegged against the USD at a 1:1 ratio. The issuer of Tether claim that every new USDT issued is backed by an equivalent amount of USD.
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What is USDT?

USD Tether, or USDT, was invented as a stable crypto-currency. The idea is to bridge the gap between fiat and crypto by inventing a new crypto currency, USDT, which is pegged against the USD at a 1:1 ratio. The issuer of Tether claim that every new USDT issued is backed by an equivalent amount of USD. The cryptocurrency was created in 2015, originally called Realcoin, and there is $2 billion-worth of so-called USDT in circulation today. USDT is widely used by different major crypto exchanges as one of the base currencies.

Tether tokens are issued by Tether Limited, a company based in the British Virgin Islands according to the New York Times. Tether's website says it is incorporated in Hong Kong, with offices in the US. The company has many of the same management team as Bitfinex, the Hong Kong-based cryptocurrency exchange that is one of the biggest in the world. Jan Ludovicus van der Velde is CEO of both Bitfinex and Tether, and Philip Potter is chief strategy officer for both businesses

Controversies of USDT

There has been on-going concerns around USDT’s reserve. Some people from the cryptocurrency community believe that Tether Limited doesn't hold sufficient currency reserves to back all the Tethers in circulation. There is also no legal obligation by Tether Limited to redeem any USDT for USD at the pegged ratio.

In the early days when Tether was first issued, the company promised transparency by having its numbers verified periodically by auditors. However, in December 2017, it was reported that Accountants Friedman LLP has ceased to be the auditor of the company and the relationship has “dissolved”.

Official Tether Twitter
Poloniex - USDT/USD