Cryptocurrency Q&A
How does Tether stay on $1?
How does Tether stay on $1?
Giulia
Sun Feb 09 2025
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6
answers
1331
I want to understand how Tether, a cryptocurrency, maintains its value pegged to $1. I'm curious about the mechanisms and strategies employed by Tether to keep its price stable despite market volatility.
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6 answers
Raffaele
Tue Feb 11 2025
USDT serves a crucial function in the cryptocurrency market by offering liquidity.
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henry_harrison_philosopher
Tue Feb 11 2025
Its main advantage lies in its ability to serve as a hedge against market volatility.
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TaegeukChampionship
Tue Feb 11 2025
The theoretical stability of USDT stems from the fact that it does not appreciate or depreciate in value.
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CryptoAce
Tue Feb 11 2025
The value of Tether, or USDT, is intricately tied to the reserves held by Tether Limited.
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NebulaNavigator
Mon Feb 10 2025
These reserves are meant to back the stablecoin on a 1:1 basis.
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