Crypto Academy Week 6 Homework Post for @yohan2on | Stable coin - USDT
This article is my homework for the 6th week of Steemit Crypto Academy.
Professor @yohan2on explained "The relevance of Stable coins" and
"The Categories/types of stable coins" in this course.
Now, I will briefly explain the stable coin named USDT.
Stablecoins
Source
Stablecoins are a much-needed solution to the cryptocurrency markets' price instability. To ensure market stability, most of these digital currencies are backed by an underlying asset. Stablecoins that are pegged to fiat currencies, for example, are one of the most common types of stablecoins.
Tether (also known as USDT) is a stablecoin that is backed by the United States dollar 1:1. Financial service providers are required to set aside $1 for each unit of USDT in circulation and keep it in reserve.
The number of stablecoins available has increased dramatically in recent years, as has their value. There are even crypto assets pegged to other fiat currencies, such as the EURO, and many other cryptoassets.
USDT - TETHER
Source
USDT - Tether is a stablecoin, which is pinned 1:1 to the U.S. dollar.
Tether is provided by Tether Limited, a Hong Kong-based company. Initially, the company believed that each USDT was backed by a single dollar, but it has since acknowledged that the scheme is more like a fractional reserve system.
Tether Limited is in charge of accepting fiat deposits and withdrawals on behalf of customers, as well as minting and destroying Tether tokens according to the reserves it controls.
It is one of the most widely used methods for crypto traders to enter and exit the market. Tether is readily available, and new Tether is printed on a regular basis. Although many people choose Tether because of its simplicity, the company has been sued many times for alleged market manipulation.
The Omni Layer protocol, a framework for creating and exchanging digital assets on top of Bitcoin, was used to launch and issue Tether on the Bitcoin blockchain.
Tether tokens can be minted and burned using this technology depending on the quantity in custody. The Omni Layer protocol may also be used to monitor and report Tether circulation.
USDT - Tether is available on Binance, Huobi, Kraken, Ploniex ect.
Cc:-
@steemitblog
@steemcurator01
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@yohan2on
Hi @dilbilgici
Thanks for attending the 6th -Crypto course and for your effort in doing the given homework task.
Feedback
This is good work. Well done with your research study on Tether.
Homework task
7
Dear Professor @yohan2on thank you very much !