Tether EURt Price (EURT)

The Tether platform tries to prove the transparency of its system by publishing a record of total reserves and assets on a daily basis. For that, there is a special transparency page on the official website of the platform. However, Tether transparency is doubted since one company owns, mints, and manages the Tether supply which is one of the key reasons for the critical attitude of the cryptocurrency community.

Tether released USDT, which has become the third most widely held cryptocurrency by value in the world after Bitcoin and Ethereum. It makes the asset unique, as it has managed to reach the top position in a market built largely on speculation. The success is explained by the fact that this asset was a pioneer in its niche and became a breakthrough instrument that formed the shape of the cryptocurrency industry. The advent of the asset has also become a blow for a traditional financial system resulting in significant influence on the financial world.

Tether doesn’t belong to the list of decentralized companies as many other cryptocurrencies, but it supports the development of decentralization in the sphere of finances. The team of the platform stands for accessibility of cryptocurrencies around the globe. Tether stablecoin gives users control over their assets so that they can stand against the denomination of cryptocurrencies’ value in times of downtrend.

A stable coin representing one unit of fiat currency removes the necessity to develop sophisticated oracles and APIs for the interaction of the contract with the world of fiat money. At the same time, the asset is a part of the Ethereum network, consequently, it enables the introduction of complex software logic into a smart contract to develop standalone blockchain-based software dealing with fiat currencies securely.

The audit of smart contracts developed by the in-house team was conducted by Zeppelin Solutions before the release of digital coins. The auditor didn’t find any critical errors or vulnerabilities.

EURt cryptocurrency

With the introduction of EURt, users received a digital asset that represents the currency EURO in the cryptocurrency world. It helps to avoid the problem of volatility during conversion. Similar to USDT, EURt is based on the Ethereum standard ERC20.

The existence of EURt on blockchain makes it a helpful instrument for converting digital assets into the asset that is benchmarked against fiat Euro without leaving the cryptocurrency market. It means that it isn’t necessary to exit into a bank and open a fiat bank account in any jurisdiction for that. Without this tool, transferring assets to fiat would cause huge friction, complications, and pressure for cryptocurrency holders. With EURt, there is no necessity for that, so this instrument contributes to the overall growth and development of the cryptocurrency industry.

In January 2018, tokenized euro was listed on Bitfinex, a cryptocurrency exchange that was also founded by Tether Holdings Limited. In addition, Ethfinex became one of the first platforms where users could input and output EURt.

In May 2022, the company stated that it decreased its commercial paper holdings by 50% and rolled the funds into the US treasuries. The company plans to continue the gradual reduction of commercial paper holdings further.

Tether stablecoins controversy

Being one of the most liquid stablecoins in the market, Tether assets are reportedly backed by a solid, conservative portfolio including fiat assets and fiat equivalents, for instance, money market funds, short-term treasury bills, and commercial paper holdings from highly-rated issuers (A-2 and above).

Though the founders asserted initially that the Tether’s reserves should have been fully backed at a ratio of 1:1, there was much controversy on the subject that still persists. Some experts are skeptical about the actual amount of reserves backing digital assets, stating that the asset was created for the artificial inflation of the Bitcoin value to manipulate the cryptocurrency market. It was even the subject of an investigation by the New York attorney general’s office in 2019 that revealed that the Tether asset is only backed by 74% despite the company’s claim about real fiat money in the bank for every stablecoin put in circulation. The company refused to fully audit itself but continued to issue new coins, therefore, critics started questioning even this number.

Eventually, Tether issued a report in May 2021, saying that 2.9% of Tether is backed by cash, while 49.6% of Tether is backed by commercial paper. As a result, the company paid an 18.5 million USD fine, but didn’t admit any wrongdoing. In this connection, it is also worth noting that according to the Terms of Service published on the official website of the platform, Tether Limited has no legal obligation to redeem tokens for dollars and euros.

Tether team

The members of the senior management team have huge expertise in technology and finances. The staff of the company is spread globally. Paolo Ardoino, Tether CTO, was previously Bitfinex CTO and senior software developer. He is a Bachelor of Computer Science and a graduate of the University of Genoa, one of the largest universities in Italy.