Is Tether stablecoin backed by real-world assets and how does it maintain its price stability?

3 answers

• Nikhil SharmaDec 28, 2020 · 5 years ago
  Yes, Tether stablecoin is backed by real-world assets. It claims to be fully backed by reserves, including traditional currency and cash equivalents, and they regularly undergo audits to ensure transparency. This backing helps to maintain its price stability as it provides a sense of security and trust among users. However, it's important to note that the exact composition of these assets is not publicly disclosed, which has raised some concerns in the past.
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• Coates FrancisMar 03, 2023 · 3 years ago
  Absolutely! Tether stablecoin is backed by real-world assets, or at least that's what they claim. They say that for every Tether token in circulation, there is an equivalent amount of reserves held in their accounts. This backing is supposed to provide stability to the price of Tether. However, there have been controversies and doubts surrounding the transparency of their reserves, which has led to some skepticism within the crypto community.
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• Mahdi KarvandiApr 08, 2024 · 2 years ago
  Yes, Tether stablecoin is backed by real-world assets. According to their website, each Tether token is backed by one US dollar held in their reserves. This backing is what helps to maintain the stability of its price. However, it's worth mentioning that Tether has faced criticism and legal challenges in the past regarding the transparency of its reserves and the accuracy of its claims. So, while it may be backed by real-world assets, there are still concerns about its overall stability.
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