Cryptocurrency Q&A
Is USDT backed by USD?
Is USDT backed by USD?
Chloe_thompson_artist
Sun May 12 2024
|
5 answers
1155
I've often heard that USDT is somehow connected to the US dollar, but I'm not entirely sure how. Could you clarify for me? Is USDT actually backed by USD in a direct way? I'm trying to wrap my head around the concept of stablecoins and how they maintain their pegged value. If USDT is indeed backed by the US dollar, how does that process work? And what happens if the value of the US dollar fluctuates? Would that affect the value of USDT? I'm really curious about this and would appreciate a detailed explanation.
5 answers
Caterina
Tue May 14 2024
Tether (USDT) is a cryptocurrency categorized as a stablecoin.
Was this helpful?
317
69
Margherita
Tue May 14 2024
BTCC is a cryptocurrency exchange headquartered in the UK, offering a range of services.
Was this helpful?
78
90
Martino
Tue May 14 2024
This type of coin aims to maintain a constant value by being pegged to a fiat currency.
Was this helpful?
220
52
SolitudeSeeker
Tue May 14 2024
In the case of USDT, it is pegged to the US dollar (USD).
Was this helpful?
317
56
SumoStrength
Tue May 14 2024
The company supporting Tether asserts that each USDT token corresponds to an equal amount of real USD held in reserve.
Was this helpful?
223
23
