Tether is a stablecoin cryptocurrencytheoretically pegged to the US dollar.This stablecoin was launched in 2014 by a company called Tether Limited. The company is incorporated in the British Virgin Islands and its founders are Brock Pierce, iFinex CEO and former child actor; Reeve Collins, former head of commodities trading company Noble Group while Craig Sellars is a financial services veteran. The credentialsreputation of Tether Limited have been the subject of much controversy. In 2019, the New York Attorney General's office accused Tether of creating false statements about its reserves. The company settled the case in 2021 without admitting any wrongdoing. Tether was also was denoted as a "major foreign national" under the International Emergency Economic Powers Act by the US Treasury Department. The implication for US citizens and companies is that they are prohibited from conducting transactions with Tether without a license. One of my favorite Youtubers, CoffeeZilla - AKA Internet/Crypto Detective, elaborated on validity of pegging allegations and liquidity in this video below:
Against this murky backdrop,Tether (USDT) continues to be the most widely used stablecoin in 2023, with a market capitalization of over $74 billion. It is used by a wide range of crypto exchanges, including ** and Kraken. Tether has also been used to launch a number of new cryptocurrency projects, such as decentralized exchanges and lending platforms.
History and Reputation of USDC:
USD Coin (USDC) is a digital stablecoin pegged to the United States dollar. This stablecoin was launched by Circle in September 2018. Circle is global financial technology company which calls gigantic financial institutions like BlackRock, Fidelity Investments, and COINBASE as investors. USDC is primarily available as an Ethereum ERC-20 token, and on blockchains including Hedera Hashgraph, Algorand, Avalanche, Solana, Stellar, Polygon, and TRON . Visa announced that it would allow the use of USDC to settle transactions on its payment network on March 29, 2021.
It's is vital to note that the on the Circle website changed from the previous “backed by US dollars” to “backed by fully reserved assets” in June 2021 . USDC reserves are regularly attested (but not audited) by Grant Thornton, LLP, and the monthly attestations can be found on the Centre Consortium’s website. As of July 2022, Circle states that there are 55 billion USDC in circulation . On March 11, 2023, USDC lost its peg to the dollar after Circle confirmed $3.3 billion, approximately 8% of its reserves, were at risk due to the collapse of Silicon Valley Bank that occurred the previous day. However, USDC its peg to the dollar four days later. So yes, as of TODAY is it still pegged to the US Dollar.
In conclusion, Tether (USDT) and USD Coin (USDC) are two of the most popular stablecoins on the market. This makes them less volatile than other cryptocurrencies, and more attractive to investors and traders. To help you evaluate their worth and risk, I've put together the following table:
Comparison Table of USDT and USDC:
All in all, decisions and approaches should be influenced by investment goalsrisk tolerance. Though USDT and USDC are stablecoins, they are still blockchain currencies, and therefore ALWAYS do your due diligence and NEVER invest more than you can afford to lose. Lastly, for sound financial advice, find certified financial advisors for more insights.
Do you personally have USDT or USDC? If so, is it for trading or other crypto related financial decisions?
Once you have considered these factors, you can make an informed decision about which stablecoin is right for you.
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