Tether is a cryptocurrency issued by Tether Limited Company. Using the technology of blockchain, Tether coin allows the users to keep, send and receive digital tokens pegged to dollars, euros and yens. Tether is a stablecoin, whose value should be 1:1 with a fiat currency, e.g. USD. The company running Tether claims that USDT is fully backed by the given fiat currency.
How to use Tether with Trezor
|Firmware (device) support||Trezor One 1.6.2., Trezor Model T 2.0.7.|
|Available in Trezor Wallet?||Yes (Beta) (as an ERC20 token)|
|Third-party wallets||MyEtherWallet, MyCrypto|
It is possible to use Tether with Trezor on the Beta Wallet as an ERC20 token. For more information, see this manual: New cryptocurrencies in Beta Wallet.
History of Tether
Realcoin was announced in July 2014 by Brock Pierce, Reeve Collins and Craig Sellars. The first tokens were issued on 6 October 2014. Later that year, the project was renamed to "Tether". At that time, the company also announced it was entering private beta, which supported a "Tether+ token" for three currencies: USTether (US+) for United States Dollars, EuroTether (EU+) for Euros and YenTether (JP+) for Japanese yen. The company stated that every token was backed by the connected fiat currency.
At the time of writing, there are four Tether tokens: United States Dollar Tether on Bitcoin Omni layer, Euro Tether on Bitcoin Omni layer, United States Dollar Tether as an ERC20 token, and Euro Tether as an ERC20 token.
Controversies and scam allegations
Dollar reserve doubts
The state of Tether reserves is often the subject of controversy. Critics claim that the company has been issuing more tokens than it had dollars in their reserve. Tether has consistently denied this, but has not produced conclusive evidence that it is reserved 1-for-1.
Bitfinex and price manipulation
There are allegations and research that suggest that Bitfinex, the cryptocurrency exchange that shares common owners and managers with Tether, uses USDT to artificially drive up the price of Bitcoin. In a statement to The Washington Post, the CEO of both Bitfinex and Tether, J.L. van der Velde, denied the claims.
The research and allegations that Tether is not fully backed and that it is involved in price manipulation lead many people to believe that the whole project is a scam.