Most of us know Tether because of being involved in a controversy over its funds during the last months. Tether (USDT) is a digital token that is backed by fiat currency, in this case by US dollars. But now, this project is starting a new token: EURT. The main difference is the EURTs will be backed by Euros and not by dollars.
Tether Releases EURTs
Tether has decided to create the new EURt supported on Ethereum and compatible with the ERC20 standard. The intention of the company is to allow money transactions that are fast and without the volatility of digital currencies.
The company wrote a statement that explains the introduction of EURTs:
“Following the widespread success of our Bitcoin-based USD Tether, issued via the Omni Layer Protocol, we have today launched and issued both US Dollars and Euros as Ethereum-based Tether, compatible with the ERC20 standard.”
This token is able to be transferred via the Ethereum network. It allows for interoperability with Ethereum based protocols and DApps. Users are able to transact fiat pegged currencies through the Ethereum Network. The company has decided to use ERC20 compatible tethers in order to reduce network fees and have faster confirmation times.
Furthermore, the company has decided to ask Zeppelin Solutions to review the Tether Token contracts. According to the result of the report, no critical or high severity issues were found. Medium and Low severity issues were reported and some solutions were proposed.
Besides that, several exchanges are working in order to accept EURTs.
The company has been in 2017 in the media because of different reasons. One of these reasons was that the Tether treasury wallet was hacked. $30,950,010 USDT were removed from the Tether Treasury wallet on November the 19th and sent to an unauthorized bitcoin address.
Another important topic that has been discussed was Tether’s funds and how the fund keeps growing. According to the company, each USDT issued is backed by a US dollar. But the last months of 2017, Tether has been issuing more and more tokens. This raised several concerns whether the company has the funds or not.
It is important to remark that Tether is not money, but a monetary instrument. There is not legal right against Tether in order to redeem or exchange USDT for money. ‘We do not guarantee any right of redemption or exchange of Tether by us for money. There is no guarantee against losses when you buy, trade, sell or redeem Tethers.’
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Tags:bitcoinBTCCryptocurrencyCryptocurrency Marketerc20EUREuroEURTEURTsLitecoinLTCTetherTether ControversyTether DollarTether EuroTether FundsTether Market CapitalizationTether PriceUSDUSDTUSDTs