Tether

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Tether
Tether Logo.svg
symbol USDT
Publishing year 2015
developer Tether Limited
Mining No
Website tether.to

Tether is an unregulated cryptocurrency with tokens issued by Tether Limited. Tether is traded as a so-called stablecoin 1: 1 to the US dollar .

history

Tether, originally called Realcoin, was introduced on July 9, 2014 by Brock Pierce, Reeve Collins, and Craig Sellars. With the help of the Mastercoin protocol, one wants to keep each realcoin in reserve with one US dollar.

November 2014 Realcoin, was renamed at the beginning of the private beta in tether because they wanted to prevent the cryptocurrency as an alternative currency for Bitcoin am seen. During the beta phase, Tether entered into a partnership with the Bitfinex trading platform and the startups Expresscoin, GoCoin and ZenBox supported by Brock Pierce .

Attack on Tether

In November 2017 it was announced that strangers had succeeded in transferring US $ 31 million from Tether Limited's main wallet to an unauthorized Bitcoin wallet with the address 16tg2RJuEPtZooy18Wxn2me2RhUdC94N7r . For security reasons, trading with the wallet in question was temporarily suspended and the Omni Core software was revised. However, since this change does not match the previous consensus model, the software change is a so-called hard fork .

technology

Tether is on the Bitcoin - Block Chain (before the transition to Litecoin -Blockchain) on the Omni-layer, or Ethereum Tron output protocol.

criticism

Critics criticize the Tether model, among other things, that it is only published by one company, Tether Limited, and that the background is not transparent enough. The managing directors of Tether Limited are also those of iFinex Inc., the company behind Bitfinex.

Again and again the suspicion was expressed that the stablecoin was not covered 1: 1 by US dollars. Finally, in March 2019, Tether Limited announced that Tether's coverage was not just US dollars. Other assets (e.g. other cryptocurrencies) and outstanding debts from loans granted to third parties are also used to cover the tokens.

In April 2019, it was revealed that the New York attorney general's office opened an investigation into allegations of the companies covering up the loss of $ 850 million in funds.

Web link

Individual evidence

  1. ↑ Jason Deutsch: Is Tokenization In Its Infancy? . August 16, 2017. Retrieved October 24, 2017.
  2. ↑ tethering Cryptocurrencies to Fiat Currencies Without Transparency: A Case Study . Social Science Research Network (SSRN). Retrieved March 11, 2018.
  3. ↑ Sarit Markovich: Commentary: The Overlooked Actor That Could Crash Bitcoin ( en ) Retrieved December 5, 2017.
  4. ↑ Brock Pierce Announces Dollar-backed Cryptocurrency 'Realcoin'. July 9, 2014, accessed May 16, 2019 .
  5. ↑ Realcoin Rebrands as 'Tether' to Avoid Altcoin Association. November 20, 2014, accessed May 16, 2019 .
  6. ↑ Cryptocurrency startup loses $ 31 million. November 21, 2017. Retrieved May 16, 2019 .
  7. ↑ Tether FAQ. Retrieved April 26, 2019 .
  8. ↑ Kyle Torpey: This US Dollar-Backed Token Issued On Bitcoin And Ethereum Is A Ticking Time Bomb . September 30, 2017. Retrieved October 24, 2017.
  9. ↑ Tether (USDT): Cryptography as Digital Crisis Currency and US Dollar Replacement? - what is behind the token . September 21, 2017. Retrieved October 24, 2017.
  10. ↑ Breaking: Tether is not 100 percent covered by deposited US dollars. March 14, 2019, accessed May 5, 2020 .
  11. ↑ $ 850 million gone: New York attorney general takes action against Bitfinex and Tether. April 26, 2019, accessed May 16, 2019 .
  12. ↑ Turbulence in the stablecoin tether is causing the crypto market to falter. April 26, 2019, accessed May 16, 2019 .