Ranked 3rd in the world, Tether is a benchmark crypto. Characterised by its price, which is always around $1, the token is remarkably stable. It is one of the first stablecoins to be recognised in the cryptosphere. It is backed by the value of the dollar, the world’s leading currency, giving it real added value.
Tether Ltd. has nevertheless experienced a number of controversies over the course of its history, which could have called its status into question. But the company has bounced back to offer its investors ever greater transparency. As a result, it is now a promising company, with a token that has been in the news for some weeks now. Indeed, like many other stablecoins, its growth is accelerating.
Faced with a token like this, you’re wondering what to do. We’ll guide you through the process and explain all the issues behind Tether.
Tether in a few key figures
Tether price chart in euros
Tether price
Source: CoinMarketCap
Its current price
In 2021, the token’s price fluctuated only slightly. At the start of the year, the value of one Tether was around 1 dollar (around €0.82). Since then, this figure has not really changed. There have certainly been slight falls in the price of Tether, with the value sometimes dropping below the 1 dollar mark, at the end of March for example. But these episodes have been short-lived and reasonable. The token is currently worth 1 dollar. See the price of other cryptocurrencies.
History of its price
2015 : Throughout the year, the price of the token did not move at all, remaining at exactly 1 dollar.
2016 : After a fixed price of 1 dollar at the beginning of the year, its token value saw two slight rises at the end of January and the beginning of May, before suffering a larger drop in August. At that point, the token was worth around $0.96 (or €0.79). After this period, the price stabilised again at $1 until December.
2017 : The start of the year sees little movement for the token, given that its price remains at $1. However, the value of Tether recorded the biggest fall in value in its history in April. The fall was still acceptable, however, as the price was still hovering around $1. At the time of this fall in value, you had to pay around $0.92 (equivalent to … euros) for one Tether. Since then, the token’s value has continued to fluctuate, with most of its value rising to over $1. For example, the token reached its highest price ever in December, with a value of around $1.06 (equivalent to €0.87).
2018 : The token price was slightly above $1 during the first quarter of 2018. Thereafter, the token fell below the dollar, but only by a few hundredths of a cent. After a larger-than-usual drop in early November, the value of Tether rose again until the following year.
2019 : During this year, the price of Tether recorded some fluctuations, but the price of the token overall always remained around 1 dollar, more precisely slightly above this bar.
2020 : The year 2020 is fairly similar to 2019 for Tether, with stability in the token’s value even more notable.
Tether’s stock market listing
Tether is ranked the world’s 3rd largest cryptocurrency, with a market capitalisation (or market cap) of $61,744,527,790 (or €50,605,913,253).
What factors cause the value of Tether to fluctuate?
There are a number of reasons why cryptocurrencies fluctuate in price. Many are common to most virtual assets, while others are more singular.
Supply and demand
This law applies to many cryptoassets. The case of Tether differs slightly, however, in that demand for $1 never ceases on the company’s side. In fact, in addition to offering a token backed by the world’s leading currency, Tether Ldt. is authorised to issue dollars.
The token’s reputation
In this respect, Tether is rather lucky. It is one of the most important factors in the price variation of digital tokens, insofar as it can influence investor confidence in a given asset. Among other things, this reputation is conveyed by the media. A news item that is more or less favourable to a crypto, or a simple tweet, can really swing its value.
Regulations and laws
Every government is different and has a different vision of crypto-currencies. Some might favour their prosperity through laws and rules that are favourable to them, while others would not hesitate to restrict their use. These are factors to be taken into account.
Forecasts and the future of Tether
For these analyses of the future of the token price, we have taken into account the studies of two experts in the field: Wallet Investor and TradingBeasts. Bear in mind, however, that these are still forecasts, and there is no guarantee that they will be fully realised in the future. So take them with a grain of salt!
Price forecasts for 2021
According to Wallet Investor, Tether is not the best one-year investment. As it is a stablecon, Wallet Investor points out that Tether does not offer very high returns. However, the trend in the token’s price is fairly positive, so it will surely end the year with a price above 1 dollar.
TradingBeasts maintains that it is a good investment and that its value is likely to increase more than before. For example, the site estimates that in June 2021, the price of Tether will be around $1.28 (or €1.05).
Long-term price forecasts
Over the longer term, we know in advance that the price of the token will normally be around $1, as it is backed by the dollar. This is confirmed by Wallet Investor’s estimates up to 2026.
TradingBeasts, on the other hand, sees a more significant rise in the price of the token, with a value of over $1.6 in 2022. For the following years, the site predicts that prices will continue to rise, remaining above $1 until 2024.
All about Tether
Origins of the project
The Tether project began in 2014, in the hands of Brock Pierce, Reeve Collins and Craig Sellars. Initially, the project was called Realcoin, but it quickly took on the name Tether, as we’ll see later. Very quickly, USDT tokens were issued on Omni, a platform based on the Bitcoin blockchain.
Tether is part of the stablecoin family and is pegged to the dollar. Stablecoins are cryptos based on other cryptocurrencies, commodities or fiat currencies. Because of its link to the dollar, Tether Ltd. can issue both Tether and dollars.
In addition to the USDT token, the company offers other services, such as Tether Gold, Tether EUR and Tether CNH.
Controversies surrounding Tether Ltd.
The company has been in the news a lot, and not to its advantage.
A hidden link?
Tether Ltd. hid its link with Bitfinex. This proximity was only revealed in 2017 following the Paradise Papers. The company is therefore criticised for a lack of transparency on this point.
Market manipulation?
Some people believe that Tether has manipulated the crypto market. This is said to have been the case in 2017 and 2918, when the number of USDTs in circulation was strangely dependent on the price of bitcoin… But in the end, this link and this manipulation have not really been proven, and could be due to pure chance.
Empty dollar reserves?
The other reason for questioning the company is that some believe it does not have the dollar reserves to match the number of USDT in circulation. However, numerous analyses, reports and audits have refuted this rumour.
Main characteristics
A stable token
As you will have gathered, the price of Tether reflects that of the dollar, making it a stable token. It is therefore a suitable token for investors who are not looking for large fluctuations. However, you should expect to make only small gains, precisely because of the token’s stability.
A recognised token
Tether is highly ranked, and not for nothing! The company and its token are performing well and know how to overcome the trials and tribulations. Being indexed to the world’s leading fiat currency is also a significant advantage.
News about Tether
Tether available on Coinbase
At the beginning of May, Coinbase added Tether to its catalogue of cryptocurrencies. This was made possible by the impressive market capitalisation of Tether Ltd, which now exceeds $50 billion. Coinbase, which was recently listed on the stock exchange, is a leading platform in the cryptosphere. So this is very good news for our stablecoin!
Tether launches on Avalanche
Very soon, in mid-June to be precise, the token will be available on Avalanche. Investing in new platforms is one way of attracting new traders. What’s more, Avalanche is particularly well suited to Tether, since the platform accepts EVM (or Ethereum Virtual Machine), a process that Tether already uses.
The growth of stablecoins continues
In this period of growth for all stablecoins, Tether has reached an important milestone: its market capitalisation has passed the $60 billion mark. The team behind the token is delighted, and was quick to tweet:
“Tether has just surpassed a market capitalisation of $60bn! In May 2020, the market capitalisation of #Tether tokens was $8bn.”
That’s a growth of… 581% in demand for the token! Thanks to this performance, Tether has overtaken Cardano and Binance Coin in the crypto rankings and is now in 3rd place.
tether token
Source: CoinMarketCap
Advantages and disadvantages of investing in Tether
Advantages
Great stability. As you will have gathered, one of Tether’s primary objectives is to avoid excessive price volatility by being backed by the dollar, the world’s leading currency (a real one this time).
Confidence in the token. As the 3rd largest crypto in the world, Tether has earned itself a very good reputation and a certain amount of trust from investors.
Increasing transparency. The company provides a range of relevant information on its site, with a view to transparency. In the same vein, Tether Ltd. undergoes regular audits to reassure investors and guarantee its promise to always hold an equivalent amount in US dollars.
Disadvantages
Its link with the dollar. This proximity can be beneficial, but also restrictive at times. If the dollar undergoes major price variations or an inflationary episode, for example, this will not be to Tether’s advantage.
Possible harmful control. Unlike other cryptocurrencies, Tether is a Stablecoin. This implies greater control by states and governments, which could be detrimental.
Questions surrounding the company. In the world of virtual tokens, trust is important and the slightest misstep is denounced. For example, the company’s hidden links with Bitfinex are still a source of concern for some investors.
How does Tether work?
In practical terms, Tether is pegged to the dollar. This means that one USDT token is supposed to correspond to exactly 1 US dollar. This equivalence is made possible by the company’s constant demand for dollars. There is therefore an incessant balancing act between supply and demand, which is itself influenced by the trust that the various players place in Tether Ltd.
What is Tether used for?
Why choose Tether and not another virtual currency? There are several advantages to using Tether and stablecoins in general. For example, such a virtual currency offers crypto platforms access to US dollars, without having to handle them themselves. It should be noted that fiat currency is not the speciality of this type of site, and managing it in addition to cryptos can be complex. Finally, of course, Tether means that you don’t have to suffer major fluctuations and guarantees its investors a great deal of stability.
Tether’s partnerships
The crypto has had the opportunity to sign several interesting collaborations over the course of its existence.
Collaboration with OMG Network
In 2020, Tether announced a partnership with OMG Network. That year, Ethereum, Tether’s main transaction service, was experiencing technical problems. The aim of the partnership with OMG Network was to overcome these problems and make the transaction process smoother.
Partnership with Solana Network
Also in 2020, Tether Ltd. joined forces with Solana Network. As a result of this collaboration, the USDT token made its appearance on the Solana Network. In addition, transactions were made more fluid and efficient.
Realcoin becomes Tether
Originally, the project was called Realcoin. But within the first few months of its existence (in 2014), the initiative changed its name so as not to be confused with other similar platforms.
How can I get Tether in 2021?
There are several platforms where you can get USDT tokens. At the moment, the best are Binance Hubi Global and OKEx.
For your information, not all cryptos can be bought with USDT. Some will require bitcoin.
Finally, we recommend that you store your tokens carefully in a suitable wallet. In this case, we recommend a hardware wallet. Some are even available on the official Tether website.
Can Tether be mined?
Unlike other cryptocurrencies, the Tether token cannot be mined. The token is only available for purchase on dedicated platforms.
Why and how to use Tether tokens?
Why use these tokens?
If you’re looking for stability and a recognised crypto. This is the token for you! Note, however, that investments in Tether are not the most lucrative.
How can I use these tokens?
You can simply exchange your tokens. It is a good idea to buy tokens at a low price and then resell them directly to Tetcher Ltd, if the value of the token is less than a dollar.
Our opinion on Tether: is it too late to invest?
Tether is a very special crypto. It will not be suitable for all portfolios, but will satisfy investors who use it wisely. The token is impressively stable and unquestionably reliable. However, we should not forget the obstacles the company has encountered, which could have tarnished its reputation. However, the company has taken steps to continually improve and be more transparent with its customers. The company has also been in the spotlight recently, with a market capitalisation of over 60 billion dollars. This performance has earned it a rise in the crypto rankings.
So, are you tempted by this stablecoin?
