Over the course of 2010 to 2016, Bitcoin blossomed from being a cypherpunk thought experiment to an unprecedented economic phenomenon. Despite being one of the most economic experiments in nearly a century, it is plagued by volatility due to its nascency as a market. Many stablecoins, pegged to the dollar, such as BitUSD, SteemUSD, and NuBits were launched but failed to achieve product-market fit. Stablecoins were considered a failed concept until Tether emerged.
When Bitcoin was young, going from having Bitcoin on an exchange wallet to USD in your bank account was ever so simple thanks to a lack of regulation and no banking restrictions. There must have been a few dozen regulators who cared about Bitcoin, and once the ball started really rolling and the numbers added another digit, and then another, it got real and regulators started introducing barriers.
Tether was introduced as a USD pegged stablecoin; an efficient way to keep your funds hedged from volatility risk without having to pay exorbitant conversion fees and overcoming regulatory obstacles. Better yet, Tether was listed on cryptocurrency exchanges, so it was like having the stability of USD with the potential to convert that liquidity into crypto at a moments notice.
Launched in 2016, Tether got a chance to shine in 2017 when Bitcoin exploded in price and traders sought an easy way to hedge their positions, adding the cash component to portfolios while still being able to easily deploy it. This success led to multiple stablecoins coming into existence, namely: USDC launched by Circle, PAX by Paxos, GUSD by Gemini, and TUSD by TrustToken. Following Tethers system, TUSD also holds an amount of USD equivalent to the circulating supply of TUSD to create a one-for-one backing, keeping the peg safe.
This very system, notably called Proof of Funds, served as a key criticism of Tether by stakeholders inside and outside the industry.
That said, Tether has had a fair share of controversies and is still yet to overcome a tough legal battle.
Outside of their claims that each tether token was backed one-for-one by USD in a bank account, there was no evidence that this actually existed. Tether refused to publish audit results that were supposedly conducted by professional auditors, and even when they did publish some documentation, it was scanty and barely close to substantive.
It was finally revealed in 2019 that each tether is backed by $0.74 of cash. But they also claim the remaining 26 percent of the funds have been given out as short term loans that can be redeemed at any time. 2019 was the start of serious legal issues for Tether and its parent company iFinex. Tether was accused of single-handedly manipulating the Bitcoin market in 2017, an allegation they have vehemently denied despite a pending class-action lawsuit against them.
The New York State Attorney General filed a lawsuit against Tether under accusations of losing $800 million worth of customer funds and printing that equivalent in USDT to shield against said loss. Additionally, the NYAG claims Bitfinex and iFinex used shadow banking channels to process customer deposits when they were cut off from the traditional banking system. This debacle will continue in 2020, and there is no sense of how it will conclude at the moment.
Like BTCMANAGER? Send us a tip!
Our Bitcoin Address: 3AbQrAyRsdM5NX5BQh8qWYePEpGjCYLCy4
Go here to see the original:
Altcoin Explorer: Tether, The Worlds First Successful Stablecoin - BTCMANAGER
- The Great Debate - Bitcoin vs Altcoin - Video [Last Updated On: April 12th, 2014] [Originally Added On: April 12th, 2014]
- Altcoin Bitcoin Trading Bot BTCE, Cryptsy, Mintpal, Poloniex, etc - Video [Last Updated On: April 22nd, 2014] [Originally Added On: April 22nd, 2014]
- UniversityCoin UVC Project Initiatives - New PoS Altcoin 2014 - Video [Last Updated On: May 6th, 2014] [Originally Added On: May 6th, 2014]
- Bitcoin and altcoin speculation - Video [Last Updated On: May 27th, 2014] [Originally Added On: May 27th, 2014]
- Bitcoin Faucet / Altcoin Faucet FREE BITCOINS - Video [Last Updated On: May 29th, 2014] [Originally Added On: May 29th, 2014]
- ULTIMATE ALTCOIN DAYTRADERS SPREADSHEET (The Demo:) - Video [Last Updated On: June 4th, 2014] [Originally Added On: June 4th, 2014]
- Zedomax Compound w/ 300Mh/s Altcoin Farm/Android Gallery! #HighOnAndroid - Video [Last Updated On: June 5th, 2014] [Originally Added On: June 5th, 2014]
- How to Password Protect Your Bitcoin / Altcoin Wallet Backups on a USB Flash Drive - Video [Last Updated On: June 14th, 2014] [Originally Added On: June 14th, 2014]
- Ultimate Altcoin Daytraders Spreadsheet with Portfolio (2of2) - Video [Last Updated On: June 17th, 2014] [Originally Added On: June 17th, 2014]
- Bitcoin Mafia's Altcoin Spotlight for 6/13/14 - SuperCoin [SUPER] - Video [Last Updated On: June 17th, 2014] [Originally Added On: June 17th, 2014]
- Beat boxing before Altcoin panel. - Video [Last Updated On: June 23rd, 2014] [Originally Added On: June 23rd, 2014]
- ALTCOIN GENERATOR - Video [Last Updated On: June 25th, 2014] [Originally Added On: June 25th, 2014]
- NEW FEATURES altcoin daytraders spreadsheet CHARTS CHARTS CHARTS + AUTO PORTFOLIO - Video [Last Updated On: June 28th, 2014] [Originally Added On: June 28th, 2014]
- Create your own Altcoin - by Wideo.co - Video [Last Updated On: June 30th, 2014] [Originally Added On: June 30th, 2014]
- Bitcoin and Altcoin Coin Mining - GoCoin Payment Processor - Video [Last Updated On: July 10th, 2014] [Originally Added On: July 10th, 2014]
- Multisig Coin - Most Secure Altcoin Ever - Video [Last Updated On: July 24th, 2014] [Originally Added On: July 24th, 2014]
- Coin Brief Podcast #8: New York Bitcoin Regulations, Altcoin Value, Mining Decentralization & More - Video [Last Updated On: July 24th, 2014] [Originally Added On: July 24th, 2014]
- AUTO-TRADING - Running the Free Quatloo Trader for the first time (Altcoin Auto-trader software) - Video [Last Updated On: August 1st, 2014] [Originally Added On: August 1st, 2014]
- Bittrex Altcoin Auto-Tracker Demo - Video [Last Updated On: August 1st, 2014] [Originally Added On: August 1st, 2014]
- A great new Altcoin idea..."Gayfishcoin" - Video [Last Updated On: August 6th, 2014] [Originally Added On: August 6th, 2014]
- Altcoin Investment 101: Today's tip - Video [Last Updated On: August 12th, 2014] [Originally Added On: August 12th, 2014]
- Anatomy of an altcoin with Doug Pike of Vericoin - Video [Last Updated On: August 28th, 2014] [Originally Added On: August 28th, 2014]
- Plankton WhaleFOOD - Benefits for Supporters of the FOOD Altcoin - Video [Last Updated On: August 29th, 2014] [Originally Added On: August 29th, 2014]
- Basic Trading Tactics - Bitcoin Trading Bot - Altcoin Trading Bot - Video [Last Updated On: September 25th, 2014] [Originally Added On: September 25th, 2014]
- 2) PREVIOUS TRADES (Ultimate Altcoin Daytraders Spreadsheet) - Video [Last Updated On: October 10th, 2014] [Originally Added On: October 10th, 2014]
- 1) GETTING STARTED/ Entering BTC (Ultimate Altcoin Daytraders Spreadsheet) - Video [Last Updated On: October 10th, 2014] [Originally Added On: October 10th, 2014]
- Updates: Personal, Bitcoin, Altcoin! - Video [Last Updated On: October 11th, 2014] [Originally Added On: October 11th, 2014]
- 4) CONTINUATION TRADES (Ultimate Altcoin Daytraders Spreadsheet) - Video [Last Updated On: October 16th, 2014] [Originally Added On: October 16th, 2014]
- 5) TWEAKS; ICO'S, IPO'S, MINING (Ultimate Altcoin Daytraders Spreadsheet) - Video [Last Updated On: October 23rd, 2014] [Originally Added On: October 23rd, 2014]
- Can an Altcoin Cure Cancer? CureCoin - Video [Last Updated On: October 24th, 2014] [Originally Added On: October 24th, 2014]
- BTC2B - Altcoin disscusion Panel - Video [Last Updated On: November 10th, 2014] [Originally Added On: November 10th, 2014]
- Poker Totty Venus's Weekly Altcoin Flyers And Divers On Gwapex - Video [Last Updated On: November 12th, 2014] [Originally Added On: November 12th, 2014]
- Altcoin & Bitcoin Trade Bot - Slowly Buy and Sell - Video [Last Updated On: November 16th, 2014] [Originally Added On: November 16th, 2014]
- Haasbot 2.0 Beta - Bitcoin Trade Bot, Altcoin Trade Bot, Bitfinex, Huobi,Bittrex,Poloniex and more, - Video [Last Updated On: January 26th, 2015] [Originally Added On: January 26th, 2015]
- Bitcoin / Altcoin Exchange to Other Payment Processors Tutorial - Video [Last Updated On: January 31st, 2015] [Originally Added On: January 31st, 2015]
- What is an altcoin? - Video [Last Updated On: February 4th, 2015] [Originally Added On: February 4th, 2015]
- How To: Altcoin Trades - Video [Last Updated On: February 14th, 2015] [Originally Added On: February 14th, 2015]
- Shocking interview! - In the mind of an altcoin developer - Video [Last Updated On: March 6th, 2015] [Originally Added On: March 6th, 2015]
- How to Pronounce Altcoin - Video [Last Updated On: March 6th, 2015] [Originally Added On: March 6th, 2015]
- Sell Altcoin Part2 - Video [Last Updated On: March 31st, 2015] [Originally Added On: March 31st, 2015]
- WCHangout 12 -- BitTrex -- Altcoin Futures, USD pairs, & #AltsAreBack - Video [Last Updated On: April 21st, 2015] [Originally Added On: April 21st, 2015]
- Armis, picisi, crowdfunding, altcoin, bitcoin, tra - Video [Last Updated On: April 23rd, 2015] [Originally Added On: April 23rd, 2015]
- Bitcoin and Altcoin price charts / graphs [Last Updated On: May 20th, 2015] [Originally Added On: May 20th, 2015]
- Altcoin faucets - Dailycoins.net [Last Updated On: May 23rd, 2015] [Originally Added On: May 23rd, 2015]
- What is an Altcoin? - CryptoCoinsNews [Last Updated On: May 30th, 2015] [Originally Added On: May 30th, 2015]
- Lumbridgecity - Bitcoin and Altcoin Trading Community [Last Updated On: June 13th, 2015] [Originally Added On: June 13th, 2015]
- How to mine dogecoins | Dogecoin Review | Is Doge Coin ... [Last Updated On: July 3rd, 2015] [Originally Added On: July 3rd, 2015]
- The Altcoin Guys - Cryptocurrency Development [Last Updated On: August 17th, 2015] [Originally Added On: August 17th, 2015]
- mining - Is there an altcoin that is only feasible to mine ... [Last Updated On: August 17th, 2015] [Originally Added On: August 17th, 2015]
- Haasbot Bitcoin Bot | Automate Bitcoin and Altcoin Trades [Last Updated On: August 20th, 2015] [Originally Added On: August 20th, 2015]
- Altcoin Forecast [Last Updated On: September 18th, 2015] [Originally Added On: September 18th, 2015]
- The AltcoinBoard - Index [Last Updated On: September 11th, 2016] [Originally Added On: September 11th, 2016]
- Altcoin News [Last Updated On: September 11th, 2016] [Originally Added On: September 11th, 2016]
- My New Best Bitcoin (and altcoin) Wallet Exodus Wallet ... [Last Updated On: October 8th, 2016] [Originally Added On: October 8th, 2016]
- Altcoin News - Daily Cryptocurrency Articles - CoinDesk [Last Updated On: October 16th, 2016] [Originally Added On: October 16th, 2016]
- The Altcoin Report #3: Zcash - Genesis MiningGenesis Mining [Last Updated On: November 14th, 2016] [Originally Added On: November 14th, 2016]
- CoinDesk How to Mine Litecoin - A Guide on Litecoin Mining ... [Last Updated On: November 14th, 2016] [Originally Added On: November 14th, 2016]
- LCF Coin Prelaunch Review: Rothschilds & Chinese govt altcoin? [Last Updated On: February 2nd, 2017] [Originally Added On: February 2nd, 2017]
- The Altcoin Report #4: Litecoin - Genesis Mining [Last Updated On: February 5th, 2017] [Originally Added On: February 5th, 2017]
- Creditbit May Soon Find Itself among the Top 10 Altcoins - NEWSBTC - newsBTC [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Interest in Bitcoin Services Grows as Altcoin Platforms Lose Traction - The Merkle [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Crypto Traders Flock to Altcoins Amid Bitcoin Price Malaise ... - CoinDesk [Last Updated On: February 20th, 2017] [Originally Added On: February 20th, 2017]
- Why altcoins are dying and how to make one in under an hour ... [Last Updated On: February 20th, 2017] [Originally Added On: February 20th, 2017]
- What is altcoin? - Definition from WhatIs.com [Last Updated On: February 20th, 2017] [Originally Added On: February 20th, 2017]
- Altcoin Uptick Ends as Bitcoin Prices Pass $1050 - CoinDesk [Last Updated On: February 21st, 2017] [Originally Added On: February 21st, 2017]
- Markets Update: The Top Ten Altcoins Then and Now - Nigeria Today [Last Updated On: February 27th, 2017] [Originally Added On: February 27th, 2017]
- Opinion: What's the Difference Between a Bitcoin Hard Fork and an Altcoin? - CoinJournal (blog) [Last Updated On: February 28th, 2017] [Originally Added On: February 28th, 2017]
- Livecoin, the Fourth Largest Altcoin Exchange, Is Now Available in Eight Languages - Coinspeaker [Last Updated On: March 1st, 2017] [Originally Added On: March 1st, 2017]
- Karbowanec a Ukrainian local altcoin used with mobile top ups - TechAnnouncer (press release) (registration) (blog) [Last Updated On: March 2nd, 2017] [Originally Added On: March 2nd, 2017]
- Bittrex Altcoin Exchange Review - The Merkle [Last Updated On: March 2nd, 2017] [Originally Added On: March 2nd, 2017]
- Livecoin, the Fourth Largest Altcoin Exchange Is Now Available in Eight Languages - Blockchain News [Last Updated On: March 9th, 2017] [Originally Added On: March 9th, 2017]
- Altcoins Make a Comeback in Wake of Bitcoin ETF Decision - The Merkle [Last Updated On: March 13th, 2017] [Originally Added On: March 13th, 2017]
- Bitcoin Dominance Index Crashes Below 80% as Ethereum and Dash Rise - CoinJournal (blog) [Last Updated On: March 14th, 2017] [Originally Added On: March 14th, 2017]
- PoSWallet Offers Online Altcoin Staking and Exchange Services - newsBTC [Last Updated On: March 18th, 2017] [Originally Added On: March 18th, 2017]
- Several Exchanges Face Connectivity Issues During Bitcoin and Altcoin Trading Craze - newsBTC [Last Updated On: March 18th, 2017] [Originally Added On: March 18th, 2017]
- allcoinsnews.com Bitcoin, Altcoin & Blockchain Tech News [Last Updated On: March 21st, 2017] [Originally Added On: March 21st, 2017]
- SpectroCoin Announces Altcoin Support for Bitcoin Debit Cards - Yahoo Finance [Last Updated On: March 22nd, 2017] [Originally Added On: March 22nd, 2017]
- YoCoin Review: Pump and dump altcoin with recruitment [Last Updated On: March 22nd, 2017] [Originally Added On: March 22nd, 2017]
- SpectroCoin Announces Altcoin Support for Bitcoin Debit Cards - PR Newswire (press release) [Last Updated On: March 24th, 2017] [Originally Added On: March 24th, 2017]
- Op-Ed: Will Bitcoin's High Transaction Fees Open the Door for Altcoin Adoption? - CoinJournal (blog) [Last Updated On: March 24th, 2017] [Originally Added On: March 24th, 2017]