USDT-TEDA coin introduction details


USDT is the Tether USD (hereinafter referred to as USDT) token based on the stable value currency U.S. dollar (USD) launched by Tether. 1USDT=1 U.S. dollar. Users can use USDT to exchange 1:1 with USD at any time. Tether strictly abides by the 1:1 reserve guarantee, that is, for every USDT token issued, its bank account will have 1 USD fund guarantee.

Users can check funds on the Tether platform to ensure transparency. Users can use SWIFT to wire USD to the bank account provided by Tether, or exchange USDT through the exchange; when redeeming USD, the reverse operation is sufficient. Users can also exchange Bitcoin for USDT on the trading platform.

 
USDT overview

USDT is issued and traded using the Omni (formerly Mastercoin) protocol, which is a 2.0 currency based on the Bitcoin blockchain. The USDT transaction confirmation and other parameters are consistent with Bitcoin. Users can wire US dollars through SWIFT to the bank account provided by Tether, or exchange USDT through the exchange. When redeeming USD, the reverse operation is sufficient. Users can also exchange Bitcoin for USDT on the exchange.

Tether strictly abides by the 1:1 reserve guarantee, that is, for every USDT token issued, its bank account will have 1 USD fund guarantee. Users can check funds on the Tether platform to ensure transparency.

USDT is not a new currency. It has been online trading as early as 2015. However, due to the late introduction of domestic exchanges, many investors do not know it well. After the currency transaction, many investors are more concerned about how to convert their tokens into legal currency. The emergence of USDT provides a channel for everyone to exchange their tokens into legal currency.


 
USDT structure

Each layer is introduced as follows:

The Bitcoin blockchain layer mainly implements the Tether distributed ledger function. Tether transaction information is stored in Bitcoin's distributed ledger through OP_RETURN.

Omni protocol layer, the main functions of Omni protocol layer are as follows:

1. Create and destroy USDT

2. Provide OmniApi

3. Track the circulation of Tether and provide blockchain browser function through http://Omnichest.info

4. Support user trading and saving Tether (USDT)


Tether business layer, the main functions of the Tether business layer are as follows:

1. Fiat currency exchange Tether (USDT)

2. Tether (USDT) exchange for fiat currency

3. Tether (USDT) in regulatory circulation




Features of USDT

Intuitive: USDT and USD are equivalent, 1USDT=1 USD. Each currency = how many USDT, which is equivalent to its unit price in US dollars.

Stability: Because TEDA coins are supported by legal currencies, users can still trade on the blockchain asset market without being affected by the price fluctuations of most blockchain assets.

Transparency: Tether, the issuing company of TEDA, claims that its legal currency storage account is regularly audited to ensure that every TEDA coin in circulation on the market is backed by a corresponding US dollar. The status of the storage account is public and can be queried at any time. In addition, all TEDA coin transaction records will be published on the public chain.

Small transaction fees: There are no fees for transactions between Tether accounts or transactions between wallets with Tether coins. A transaction service fee is required to convert TEDA coins into legal tender.




The role of USDT

1. Avoid the overall downside risk


In the currency transaction, there are 3 common situations. Take LTC/BTC transaction as an example:

After buying LTC with BTC, both BTC and LTC are rising, and you enjoy two benefits;

After buying LTC with BTC, BTC and LTC will rise and fall one by one. Your income depends on the rise and fall of the two currencies, which is greater. Only if the increase of any one is greater than the decrease of the other, it makes a profit. Anyway, it's a loss. If the ups and downs are equal, there is no profit or loss;

After buying LTC with BTC, the extreme market situation, both currencies are falling, you need to bear two losses. This is often the worst.

But with USDT, when the price of the currency drops, you can immediately change the currency to USDT to ensure that your assets will not shrink.


2. Reverse operation of digital currency withdrawal

Recharge is very simple. USDT said that investors can wire USD to Tether's bank account through SWIFT, or exchange USDT through Bitfinex exchange.

If you have made a lot of profit and want to withdraw cash, you can first convert your currency into USDT, and then exchange it into US dollars through Tether or other platforms. Here you can find that if you complete the certification of the USDT company, you can directly trade on other currency trading platforms that do not require certification, and you do not need to re-certify other platforms.


But the withdrawal process is not so easy. You can return the USDT in your hand to Tether through Tether. The Tether company destroys the USDT received and issues the equivalent dollar to the user. It should be reminded that whether it is to purchase USDT through wire transfer of USD to the bank account provided by Tether Company, or to exchange USDT back into USD, account verification is required. It is understood that Tether's KYC is more difficult to pass, and the exchange fee is about 5%.

In addition, USDT can be exchanged for US dollars through trading platforms such as kraken. On the Kraken platform, select the USDT / USD trading pair to exchange USDT into U.S. dollars.



 
Risks of USDT

Regarding the risk of USDT, Tether also wrote in the "Tether White Paper: A Fiat Currency Token Using Bitcoin Blockchain Transactions":


Tether is a decentralized digital currency, but we are not a perfectly decentralized company. As a centralized pledger, we store all assets.

The company may go bankrupt;

The bank where the company opened the account may go bankrupt;

Banks may freeze funds;

The company may lose money;

The risk of recentralization may paralyze the entire system;


It can be seen that USDT is issued by the Tether company and has its own centralized attributes. There are still many risk points in it, and investors need to judge carefully.


 
Evaluation of the media

Tether (USDT), almost the most popular stable currency in recent years, has a market share of close to 3 billion U.S. dollars, far surpassing stable currency rivals USDC, Gemini Dollars, and JPM Coin. USDT is used as a currency to replace the U.S. dollar in digital currency trading platforms, so people do not have to change them into legal tender. Nearly 80% of all bitcoin transactions and all money laundering activities are done by Tether. This couldn't be more natural, just like most digital currency transactions.

Tether is the top five digital currency company in terms of cash flow. They get 3-5% profits from the US$2 billion provided by global users, and all of this has almost no operating costs. This kind of "stable currency," which they call a 1:1 exchange ratio with the US dollar, does not consider the additional profits they obtain from it.