How was USDT Developed?

Stablecoin with the highest market capitalization, guaranteed USD at the rate of 1:1, was issued by Tether company in 2014. The purpose of USDT is to minimize the risk of fluctuations in the value of the assets. other cryptocurrencies.

Stablecoin has the highest market capitalization value.

As of 2022, USDT has had more than 8 years of development, in the face of fierce competition from other Stablecoins, and before waves of volatility when UST lost Peg, TERRA LUNA USDT still holds its position. market share is difficult to overcome.

As one of the earliest stablecoin projects developed in the market, it is no wonder that USDT is the most integrated stablecoin by many parties. USDT is accepted for trading on more than 350 exchanges around the world, much higher than USDC with 310 exchanges and BUSD with 110 exchanges.

According to the latest statistics, the supply of USDT is currently most concentrated on Tron equivalent to 30 billion USDT, Ethereum with 28 billion USDT, BNB Chain with a total of 5 billion USDT, and Solana with a total of 1.8 billion USDT. Not only being integrated on the Blockchain, but users can now also trade USDT through Bridges.

As of 2022, USDT has had more than 8 years of development | Source: Internet

What is the role of USDT?

Thanks to its stability, USDT is used as a tool to hedge market volatility, details:

• Since each USDT is quoted at par with 1 USD, storing USDT protects from the normal volatility of the cryptocurrency market.
• Saving costs and ensuring the security of users thanks to the developed of Blockchain technology.
• USDT can be used to make most of the transactions because it is a popular currency in the Crypto market.

USDT Development Journey

Tether announced the release of USDT in early 2014, at the time when USDT was created on the market, there were still not many Stablecoins, this concept was still quite unfamiliar to users at that time. USDT's competitors at the time were BitUSD and NuBits, but after a short period, these two coins gradually disappeared from the market, while USDT's fiat-backed stablecoin model proved its stability.

Tether has repeatedly defended USDT against public opinion, especially when the legal corridor on Crypto is still limited. Some of Tether's criticisms against the media storm coming from the community:

• November 2019: Tether responds to a research paper by two authors, John M. Griffin and Amin Shams, claiming that USDT still does not have the necessary data source.
• June 2020: Tether opposes NewYork Southern District Court's allegation of USDT
• August 2020: Tether opposes allegations that the company is manipulating the Crypto market indirectly through USDT
• July 2021: Tether protested Financial Timé's inaccurate academic articles, causing a storm of public opinion at the time.
• October 2021: Tether opposes Bloomberg and Hindenburg Research articles on USDT
• December 2021: Tether gets involved in a lawsuit, the Financial Times continues to publish a series of articles about the private life histories of Tether founders and this has been strongly responded to by the company.
• February 2022: Tether disagrees with Coindesk's campaign because it thinks it can reveal confidential company data and information.
• June/July/August: Continue to provide feedback and comments on USDT and Crypto market analysis articles by famous newspapers.

In front of the media, Tether has made extremely drastic moves to protect his pet!

Tether announced the release of USDT in early 2014 | Source: Internet

If USDT crashes, what will happen?

As the Stablecoin with the highest Market Cap in the market, if USDT crashes, the Crypto market will fall into a crisis for a long time. The hypothesis is that if customers and investors in the Crypto community suddenly want to withdraw more than 80 Billion USDT from the e-wallet and transfer it back to the bank, then:

• Other coins in the Stablecoin ecosystem will appreciate rapidly.
• BTC, ETH, ETC… dyed red
• Investors sold off, the market gradually fell into a lack of liquidity.

As a stablecoin with the highest position to date, USDT plays an important role in stabilizing the Crypto market. However, in the face of stiff competition from USDC, BUSD, etc., will USDT still be able to keep the upper hand in the future?