What is Tether? USDT Stablecoin - How it works + MAJOR Issues

Summary

Tether (USDT) is the world's largest stablecoin by market cap. This lesson examines how Tether actually maintains its dollar peg, what reserves back it, the regulatory scrutiny it has faced, and why centralized stablecoins carry risks that decentralized alternatives do not. Essential viewing for anyone using USDT.

Key Concepts

Things To Remember

• Tether (USDT) is the largest stablecoin and widely used across exchanges.
• USDT is backed by Tether's claimed reserves — composition has been debated.
• Centralized stablecoins can be frozen by the issuing company.
• De-pegging events have occurred with various stablecoins — research before using.

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