If you have read our beginner’s guide to Tether, you would know that Tether is a stablecoin that is always supposed to have a value equivalent to 1 USD, but then what was the highest price of Tether ever? Does that question even arise?
Well, it would seem it does, because no matter how stable Tether’s price point may be, it also wavers from time to time. In this article, let us find out what has been the highest price of Tether in its history.
However, before delving into prices, let us begin by understanding why Tether is supposed to have a price equivalent to 1 USD.
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Tether (USDT) As A Stablecoin
Tether is a stablecoin which means that it’s value is pegged to a fiat currency, in this case, US dollar.The idea is that there will not be any upper limit on the number of Tethers that may be issued.
Instead, every time, someone buys a Tether, the developers will hold a US Dollar in lieu of it.
The Tether white paper explains how the system works in the following terms:
“In our solution, fiatpegged cryptocurrencies are called “tethers”. All tethers will initially be issued on the Bitcoin blockchain via the Omni Layer protocol and so they exist as a cryptocurrency token. Each tether unit issued into circulation is backed in a one to one ratio (i.e. one Tether USDT is one US dollar) by the corresponding fiat currency unit held in deposit by Hong Kong based Tether Limited. Tethers may be redeemable/exchangeable for the underlying fiat currency pursuant to Tether Limited’s terms of service or, if the holder prefers, the equivalent spot value in Bitcoin. Once a tether has been issued, it can be transferred, stored, spent, etc just like bitcoins or any other cryptocurrency. The fiat currency on reserve has gained the
properties of a cryptocurrency and its price is permanently tethered to the price of the fiat currency.”
One may take note of the fact that there have been multiple allegations surrounding Tether’s maintenance of adequate USD reserves.
This would ideally mean that the price of Tether (USDT) would not always remain as stable as it is hoped.
Moreover, it has also been insinuated, often with plausible reasons, that the BitFinex exchange makes use of Tether to manipulate the price of Bitcoin.
Although nothing has been conclusively proved, it may be a good idea to remain mindful of these facts.
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What Is The Price of Tether Right Now?
The price of Tether, according to data sourced from Coinmarketcap.com, at the time of writing, is $1.02.
With a total market cap of 2.05 billion dollars, Tether is ranked at the seventh place in the list of cryptocurrencies, as per market cap. At the time of writing, it is registering a small increase in price estimated at 0.03%.
What Was The Highest Price of Tether (USDT)?
If you look at most cryptocurrencies, you would find that their highest price was achieved somewhere around December, 2017 as that was the most glorious time for cryptocurrencies. However, this does not seem to be the case with Tether.
If you take a look at the price history of Tether, across the whole range of data available (as per Coinmarketcap listings), you would find that Tether actually reached its highest price point on the earliest date of data availability.
On 25th February, 2018, Tether reached a price point of $1.22, the highest level recorded. Even though it did go pretty high by its own standards even in December 2017, the price did not really breach $1.09 range, having touched a little more than $1.11 in November 2017.
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