Do you already know Tether?

If not, I am going to explain you the background of this project in some short sentences.

What is Tether?

Tether is a new cryptocurrency which has been founded in the year 2015. It is based on the blockchain technology... but one thing is different related to other coins. Just take a look at the chart:

As you can see, the value of Tether hasn't changed, although the marketcap has been increasing since the release.

And that's the special thing about Tether! The company promises that one Tether will always have the value of 1$, no matter which marketcapitalization they have. The founders think that this is fundamental for digital money.

But can this system work?

Tether claims that they backup every Tether with one dollar on their bankaccount to backup the value of the currency.

On April 18, 2017 Tether marketcap was at $50 million and now it's around $2.2 billion. This is obviously a big amount of money that was pumped into the system and it's hard to believe that the company was able to get enough money to backup the whole value of all circulating Tether.

Why did Tether grow that fast?

There are actually several reasons. On the one hand, people may be searching a possibility to put their profits in a stable currency without exchaning them into FIAT currency.

On the other hand, everyone knows that there are only some exchanges that allow you to change FIAT money into Cryptocoins. Most of the exchanges only allow crypto to crypto because of the laws in many countries.
In this case a stable cryptocurrency would make it much easier to exchange cryptos and also to hold a stable value for a longer time without having to worry that you might lose your money.

Influences on the Cryptomarket

Here are some consequences:

1: Much money is moved into Tether, which weakens the other Cryptocurrencies.

2: It simplifies the trading on cryptoexchanges and may help the cryptomarket to grow.

3: If Tether is lying and the values aren't backed up it could produce a big panic sale. It's unclear where people would put their money after the Tether Crash but it may be likely that a big part would invest it into Bitcoin.

The future of Tether and the cryptomarket

The last days weren't very easy for many people. Just realx and believe in the future of technology. Don't panic and take a second to admire all the things that are coming in the future:

How do you judge the future of the cryptomarket? 🤳

Don't waste your power and upvote this article if you liked it! 😀

Ask questions or start a discussion in the comments! 👍🏽

Official article by "genblockchain"