Cryptocurrency Q&A
How does USDT make money?
How does USDT make money?
Chloe_jackson_athlete
Wed Mar 27 2024
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5 answers
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Could you explain to me how USDT generates revenue? As a cryptocurrency enthusiast, I've been hearing a lot about it lately, but I'm still unclear on its exact profit model. I understand that USDT is pegged to the US dollar, but what's the mechanism behind its value retention and how does it generate income for its issuers? Is it through transaction fees, interest on deposits, or some other means? I'd appreciate it if you could break it down for me in a simple and understandable way.
5 answers
Bianca
Fri Mar 29 2024
Tether Limited, the issuer of USDT, generates income primarily through interest on its reserves.
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CryptoNinja
Fri Mar 29 2024
These reserves are held in various assets, including fiat currencies and government bonds, to maintain the stability of USDT's peg to the US dollar.
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Lorenzo
Fri Mar 29 2024
The interest earned on these assets acts as a significant revenue stream for Tether Limited, supporting its operations and growth.
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emma_carter_doctor
Fri Mar 29 2024
Additionally, Tether Limited generates income through transaction fees and other services related to the issuance and management of USDT.
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CryptoLodestarGuard
Thu Mar 28 2024
BTCC, a UK-based cryptocurrency exchange, offers a range of services to its users, including trading, wallet services, and more.
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