Tether is a stablecoin pegged to the U.S. dollar, meaning that its price should stay constant. In 2022, stablecoins were impacted by some of the volatility that had been more common across other types of cryptocurrency. More on that below, but this chart shows Tether’s historical and current price: What makes Tether unique? The term “stablecoin” essentially means that the Tether price doesn’t change much based on market fluctuations. This is the case because the USDT token is pegged to the US dollar at a 1:1 rate. Thus, one USDT token is approximately equal to 1 US dollar. Check out the Tether price chart above to see that for yourself. Its value stays fairly close to $1, even when the market fluctuates.
The Tether blockchain platform allows people to use cross-border financial services with a digital asset that can maintain its value like fiat currencies do. Tether also gives investors the ability to hold cryptocurrency without having to worry too much about the volatility that typical cryptos are exposed to. Tether USDt USD (USDT-USD) Tether and crypto exchange Bitfinex — both owned by iFinex — settled a lawsuit in 2021 with the New York Attorney General (NYAG) for $18.5 million. The companies were in trouble for covering up a loss of $850 million. In its investigations, the NYAG’s office discovered that sometimes Tether did not hold any USD reserves. The lawsuit began in April 2019.