What is Tether and should you invest in it?

Tether (commonly denoted as USDT) is a stablecoin hosted on several blockchains like Bitcoin, Ethereum, Tron, and Solana. A stablecoin is a cryptocurrency whose value is tied to the value of another cryptocurrency, fiat currency, or a commodity like gold.

Tether was one of the first stablecoins to be launched. Its value is tied to a fiat currency, the US Dollar (or USD), which is why it was named USDT (USD Tether). Each Tether token is pegged at a 1:1 ratio with the US Dollar, so one USDT would always be equal to one USD, irrespective of the fluctuations in demand. 

There are five Tether crypto tokens in circulation today – USDT, EURT, MXNT, CNHT and XAUT. The value of each is pegged at a ratio of 1:1 to the US Dollar, Euro, Mexican Peso, offshore Chinese Yuan, and a troy ounce of gold, respectively.