Tether has always been $1.00. It is (supposedly) backed by USD, whereas there is a real (whatever that means) United States Dollar backing each and every tether token. On really red days, tether might go up to $1.005, an on really green days, it might be $0.997. It is always right about $1.
Yesterday, I saw it down to 96 cents. It is back up to 98 cents now, but it is looking a little bit unstable.
Tether was always a great exchange coin. It was a really easy way to get "out" of crypto without getting out of crypto. If everything was going down against the dollar, you could exchange into tether and win some more bitcoin at the end of the fall (if you bought back in at the right time of course).
In the last year or so, there has been a lot of audits, or at the very least, threats of audits. There is a questionable amount of tether tokens where it is a bit hard to think that there are 2.4 billion american dollars in a bank backing up the tether coin.
I have not touched tether for a long time. I have not thought that it was on the up and up for a while now. It's use is still great, and using it to flee bear markets is great... but... it is kinda like playing hot potato. Trade into tether, try to grow your crypto stash... and hope that you are not holding it when it all hits the fan.
If the whistle blows and the rug gets pulled out on tether and you are caught holding the potato, you could be holding on to nothing. If tether is (as many speculate), a big scam, and you are holding a bunch of tether, and tether goes down to 14 cents... I don't need to do the math for you to realize you lost a bunch of money.
Invest wisely. If you feel like playing with tether, know what you are getting into. There is much to gain, but don't be caught holding that potato.
Any investment is like a hot potato, or just holding dollars... hot potato.
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Yes it suppose to be stable and $1. It created that way and it introduced as a stable one. As in starting I thought this will be always one. But saw some changes (little but still).
It saved my portfolio so many times. It prove to be life saver in some condition, specially market is not stable (market never stables but I mean in worse condition).
I am not aware about any new issues. But the last year's audit issue and other problems like they don't have equivalent USD to backed tether is already resolved I think and they provide document that prove all the allegations wrong. In case any new issue raise then I don't know about it.
Thank you for sharing such a nice article.
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No problem. I like and have used tether as well. I do think that it might be a "hot potato" that could cause some trouble down the line. Thank you for reading!
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Let's what happnes in near future 🙂
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