Let’s learn about USD Coin, a stablecoin
with a bit of drama attached to its history. Unlike traditional cryptocurrencies, Tether’s
price is not set by supply and demand. Instead, its price is designed to remain pegged
to the US Dollar. Stablecoins are easier to integrate into decentralized
applications, and they are faster and cheaper to send than international fiat transfers. Since Tether can be sent to any wallet that
supports a Blockchain that runs it, it is virtually borderless. Back in 2014, Tether was called RealCoin. It rebranded as Tether in 2015. Now get the popcorn. In November 2017, Tether suffered a reported
hack which led to over $30 million dollars in USDT being stolen.
A hard fork followed shortly after this incident. A few months later, in January 2018, a scheduled
audit to guarantee the real asset reserves simply didn’t take place. Tether then broke away from its audit firm. Shortly after that, a subpoena from regulating
authorities was sent to Tether. Later, in April 2019, Letitia James, the New
York Attorney General, accused Tether Limited’s parent company, iFinex Inc, of concealing
a loss of around $850 million dollars of client and corporate funds. It was also alleged that Bitfinex took a minimum
of $700 million from Tether’s cash reserves to hide the gap after the funds disappeared. What?? eww, that’s a lot of alleging, bro. Now, although Tether had landed itself in
hot water for not providing regular and transparent audits about their fiat reserves, it has recently
made significant efforts to demonstrate its transparency. Attestations and audit statistics can be viewed
on Tether’s website at wallet.tether.to forward slash transparency.
Tether is integrated into Omni, Liquid, Ethereum,
EOS, Tron, Algorand, and more. You’re watching the video channel of MarketSquare,
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