Stages of USDT cryptocurrency development
The initial offering of Realcoin tokens, now known as USDT, took place in October 2014. But after that, a lot of events passed before the stablecoin took on its modern form.
Tether cryptocurrency – USDT ticker – is a token pegged to the dollar. Jay Willett became its creator. He proposed the Omni Layer protocol for issuing new coins on the Bitcoin blockchain. Later, other developers, as well as businessmen, joined the team. The initial distribution of tokens took place in October 2014. Consider the main stages in the development of the USDT cryptocurrency after this point.
How the Tether Cryptocurrency Evolved
In October 2014, the company announced the issuance of three tokens that will be pegged to the exchange rate of the world’s major currencies – the dollar, the euro and the yen. According to the developers, each of the issued tokens will be tied to the reserve reserves of fiat currency.
In November 2014, the first Realcoin token was renamed Tether. This happened after the signing of a partnership agreement with the Bitfinex exchange, as well as several startups that offered tools for working with cryptocurrency.
The cryptocurrency entered the listing of the Bitfinex exchange in early 2015. A little later in the same year, Brock Pierce leaves the project, and the coin gets listed on another Poloniex exchange.
A year later, in 2016, Craig Sellars leaves his post. However, he remained in the project and continues to provide consulting support to the developers.
The stablecoin’s position was also strengthened by the fact that it was accepted as a means of payment. Frex broker FxOpen announced that it is ready to receive payments to replenish deposits in USDT tokens.
In the fall of 2017, data was leaked, after which information surfaced that Bitfinex exchange officials Philip Potter and Giancarlo Devasini had simultaneously founded the legal entity Tether Holdings Limited. In March, the coin was listed on the Kraken exchange, and then on OKEx and EthFinex.
At the beginning of 2018, tokens appeared, pegged to the dollar and the euro, but working on the Ethereum blockchain. They immediately became available for purchase on the Bitfinex exchange. However, already at the end of January, the CFTC regulator filed a lawsuit demanding confirmation of the company’s foreign exchange reserves, which provide the issued coins. In March of the following year, Tether was forced to admit that part of the collateral was not the legal entity’s own funds, but borrowed. The ratio of own and credit funds was 74 to 26.
In January 2020, the company released a coin backed by gold.
Now USDT is a liquid asset that is used for making payments, investing and other purposes. In terms of capitalization, Tether takes the 4th place, second only to the recognized leaders.