Topic: How TUSD & USDT price always become $1 ? (Read 141 times)
It's supposedly backed by USD stored in a bank account 1:1. If you check the charts, you will see that the price changed a few times. I personally don't trust Tether and I wouldn't recommend anyone storing it for the long term as there is no way It could hold it value for the upcoming years.
Hello proname,
This is a good question, as the price of USDT cannot deviate greatly from the value of the dollar. The reason why the price is near this constant is because it is linked to the value of the dollar. This means that the dollar can decline in value, but 1 USD Tether, will always be worth around 1 US dollar. There are several concerns whether trading pairs like these can be used to influence the price of Bitcoin.
As stated in the whitepaper of tether each tether that is issued into circulation is backed in a one-to-one ratio with the equivalent amount of corresponding fiat currency held in reserves by Tether Limited. They also state that whenever a user deposits tethers with Thether Limited, in order to redeem them into fiat currency, that Tether Limited destroys the tethers that were redeemed and that they send the fiat currency to the users bank account.
Because of the way tethers currently work, there are suspicions that the currency is being used to artificially influence the price of Bitcoin. An article that goes in to depth in regards to these accusations can be found here.
With kind regards,
The Anycoin Direct team
This is a good question, as the price of USDT cannot deviate greatly from the value of the dollar. The reason why the price is near this constant is because it is linked to the value of the dollar. This means that the dollar can decline in value, but 1 USD Tether, will always be worth around 1 US dollar. There are several concerns whether trading pairs like these can be used to influence the price of Bitcoin.
As stated in the whitepaper of tether each tether that is issued into circulation is backed in a one-to-one ratio with the equivalent amount of corresponding fiat currency held in reserves by Tether Limited. They also state that whenever a user deposits tethers with Thether Limited, in order to redeem them into fiat currency, that Tether Limited destroys the tethers that were redeemed and that they send the fiat currency to the users bank account.
Because of the way tethers currently work, there are suspicions that the currency is being used to artificially influence the price of Bitcoin. An article that goes in to depth in regards to these accusations can be found here.
With kind regards,
The Anycoin Direct team
In coinmarketcap USDT & USDT COINS are always stable around $1 , how is this coins become stable?
Can anyone know about this please explain
Can anyone know about this please explain
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