NOTE: At the end of the article, we have a GetSmart Quiz for you. If you correctly answer all the questions, you will receive (1) entry to win $4,000 CAD of Bitcoin! Draws are held at the end of every calendar month. Tether is easily the biggest stablecoin globally and, in terms of marketcap, it’s the third-largest cryptocurrency in the world. In this article, let’s learn more about stablecoins and Tether’s somewhat rocky history. ## In Brief • Tether is currently the third-largest cryptocurrency in the market, with a market capitalization of >$60 billion.
• Tether Limited claims that USDT is backed 1:1 by the US Dollar.
• Tether was launched in 2014 and was originally called “Realcoin.”
• Tether is an attractive proposition for users and traders because of its Acceptance, Utility, and Stability.
• Tether can be used as a hedge against fluctuations and for trading purposes.
• Tether is supported by Bitcoin, Ethereum, EOS, Algorand, OMG, and Tron.

## What Is A Stablecoin?

Stablecoins were created as a way of tackling the constant fluctuations and volatility in the price of cryptocurrencies. They do this by tying the value of a cryptocurrency to stable assets, aka peg. These assets are usually fiat currencies because they tend to be more stable over a longer duration of time—the company or entity backing the Stablecoin stores the assets backing the cryptocurrency in reserve.