The USDT stablecoin was designed to remain pegged to the US dollar, to the fact where it was its sole purpose, providing the cryptotraders with the gist of the true fiat value they had in their portfolios.
Initially, tether was designed by Brock Pierce, who changed his qualification from an actor to digital currency entrepreneur, and various different venture capitalists. The stablecoin was first introduced via a dominant fiat-to-digital cryptoexchange – Bitfinex. As of now, the USDT token is utilized on almost every dominant cryptoexchange, but the only chance of USD withdrawal at full 1.00 USD price is if you own tether tokens on Bitfinex.
Tether has once more lost its 1.00 USD peg, with the value of the not-so-stable-coin dropping the lowest since mid-October, trading at 0.93 USD. One of the reasons for this price drop to happen is caused by the arrival of competing stablecoins to the scene, with launch of such dollar-pegged currencies, as PAX, GUSD, TUSD, and USDC. All of them have the purpose and function similar to tether, except for the fact that their reputation is not as shady as tether’s is.
Another reason that caused such a decrease in value is the liquidation of the USDT tokens by cryptotraders, to the point where the exchanges are unable to compensate the currency at the desired rate, therefore separating the BTC or, in this case, the USD value of the currency from the target. The stablecoin is a catchy tool that makes its successful implementation difficult. Therefore, the same issues may be encountered by the emerging competitors further.