What is Tether backed by and how does it affect the stability of the cryptocurrency market?

1 answers

• Dec 28, 2021 · 3 years ago
  Tether, the stablecoin, is backed by a combination of cash, cash equivalents, and other assets. This backing helps to maintain the stability of Tether's value, as it ensures that each Tether token is backed by tangible assets. The stability of Tether has a direct impact on the cryptocurrency market as it is widely used as a medium of exchange and a store of value. If there are any concerns or uncertainties about the backing of Tether, it can lead to a loss of confidence in the cryptocurrency market, potentially resulting in increased volatility and instability in prices.
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