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Uncle Wen of Zhonglian, let me solve your problem.

Interpret the truth with wisdom and let justice illuminate the world

Trust is the premise, understanding is the key, and payment is respect.

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For everyone who is new to the currency circle, whether they are speculating or doing something else, the first currency that 99% of people will come into contact with is USDT. USDT (Tether) is familiar to people in the currency circle, but it is very unfamiliar to novices who are new to the currency circle. Today, Uncle Wen will talk about USDT (Tether Coin) with newcomers who are new to the currency circle or want to enter the currency circle.

There are currently a variety of stable coins on the market such as USDC, DAI, TUSD, FDUSD, etc. USDT is one of the stable coins issued by TEDA based on blockchain technology. Its English name is: Tether, its token number is USDT, and its Chinese name is TEDA Coin. Its value is anchored to the US dollar 1USDT = 1USD (US dollar).

USDT is the largest stable currency in circulation on the market.

TEDA officially claims that it will use equivalent U.S. dollars as guarantee and provide a service in which 1 USDT can be exchanged for 1 U.S. dollar. What is the purpose of this? Before the emergence of stable coins, all early currency pairs would be affected by bilateral exchange rates when conducting transactions. For example, the price of Ripple at that time was anchored by Bitcoin. At that time, Bitcoin had the largest trading volume and the highest market value. However, the price of Bitcoin fluctuated greatly and was not suitable as an anchored currency. Therefore, stablecoins were born, which solved the problem of bilateral exchange rates.

As long as you change to a stable currency, you can not be affected by the rise and fall of the market. This has a very obvious hedging effect on funds and has gradually become a rigid demand in the market. When you use legal currency to buy official USDT, your legal currency will be automatically converted into US dollars and deposited in the official account. The number of US dollars stored in this account represents how much USDT is circulating in the market. TEDA reserves reserves at a ratio of 1:1. For every USDT issued, there will be 1 more US dollar in the official account. This is why USDT is able to maintain the basis of stable prices.

On the contrary, when the user converts USDT into US dollars, the official will simultaneously destroy the equivalent USDT to ensure that the reserve fund of the official account is consistent with the circulation. In order to improve transparency, on the official website of Tether, you can check the latest official US dollar reserve amount. Because it is guaranteed by US dollars, most exchanges will support USDT as a pricing trading pair!

Because 1USDT = 1USD (U.S. dollar), the price of USDT will also be affected by the exchange rate of the U.S. dollar. Recently, the price of USDT has dropped from more than 7 yuan to more than 6 yuan. This is because the Federal Reserve has begun to cut interest rates, and the number of U.S. dollars circulating in the market has increased, resulting in the depreciation of the U.S. dollar. The price fluctuations of USDT caused by interest rate increases and decreases in this normal currency cycle are normal.

The sharp decline in USDT must be due to the occurrence of some kind of unexpected event that caused USDT and USD to become unanchored, resulting in a panic, which led to a sharp decline in local or global USDT prices!

In essence, it is the spread of panic that leads to an imbalance in the supply and demand relationship of USDT in the market.

The price of USDT has experienced several price dives in history, and TEDA has experienced several crises of trust. It was accused of insufficient reserve funds, which caused the price of USDT to become seriously unanchored in a short period of time and the price fell sharply, but it quickly recovered.

In 2020, an exchange issued an announcement saying that some of the company's private key managers were cooperating with the public security agency's investigation. They were currently out of contact, unable to complete authorization, and suspended currency withdrawals, causing market panic. Major merchants and retail investors sold USDT in large quantities, resulting in a sharp plunge in the price of USDT outside the exchange. The negative premium of USDT in the exchange was serious, and it took several weeks to recover.

Although there have been many crises of trust, as of October 2024, USDT has a market value of US$120 billion, ranking third in the crypto market by market value, second only to Bitcoin and Ethereum, and is still the stablecoin with the largest market share.

The OTC premium of USDT is the ratio of the OTC price to the US dollar. Excessive digital asset purchase demand will often make this indicator higher than the fair value of 100%, that is, the demand is excessively greater than the supply, causing the price to be higher than the normal price range for a short or long period of time, which is called a positive premium.

On the contrary, when the demand in the crypto market is low, when the supply is strong, and the supply is greater than the demand, a lower bid price will cause the price to be lower than the fair value of 100%, which will result in a lower bid price, which is a negative premium.

According to the rules of the cryptocurrency market, generally the OTC premium of USDT in a bull market is a positive premium. At this time, funds are rushing to enter the market and the demand is large. On the contrary, in a bear market, USDT prices generally have a negative premium. Of course, this is not entirely the case. The outbreak of local market conditions will also cause positive and negative premiums of USDT in the short term.

For newcomers to understand this rule and apply it in practice, you can act according to this logic when to sell and when to buy the U in your hand, which will also help save your own currency holding costs.

I am Uncle Wen. I follow the currency merchant firm and focus on the laws and regulations of the cryptocurrency circle, judicial freezing of bank cards, disciplinary appeals for two cards, currency merchant OTC, safe U-exit channels, etc.

15. Visual ME: http://shijue.me/

16. Duitang.com: http://www.duitang.com/

foreign:

1. Gratisography:

http://www.gratisography.com/

2. Pinterest:

https://www.pinterest.com/

3. Dreamstime:

https://www.dreamstime.com/

4. Life Of Pix: http://www.lifeofpix.com/

5. Free Digital Photos:

http://www.freedigitalphotos.net/

6. IM Creator:

http://www.imcreator.com/free (need to circumvent the firewall)

7. Free Photos Bank:

http://www.freephotosbank.com/

8. Pixabay: https://pixabay.com/ (Chinese version)

9. PicJumbo: https://picjumbo.com/

10. Pickupimage: http://pickupimage.com/

11. Canva: https://www.canva.com/

12. 500px: https://500px.com/

13. Unsplash: https://unsplash.com/

14. Illusion Magazine:

http://illusion.scene360.com/

15. 9GAG: http://9gag.com/

Dynamic picture website:

1. GIF cool:

http://gifcool.lofter.com/

2. Kotaiguchi-gif:

http://kotaiguchi-gif.tumblr.com/ (need to circumvent the wall)

3. Rafael-varona:

http://www.rafael-varona.com/

4. Golden Wolf: http://goldenwolf.tv/

5. Julian Glander: http://glander.co/

6. Gifparanoia:

http://www.gifparanoia.org/

7. Rafael-varona:

https://www.behance.net/rafaelvarona

4. WeChat graphics and text typesetting tools

Good article layout can give readers a good reading experience and increase users’ desire to forward and share. The choice of typesetting tools is very important. It should be precise rather than too many. Getting used to and familiar with using typesetting tools can improve typesetting efficiency.

The ones recommended below are not good or bad. Only the typesetting tools that suit you are the best typesetting tools.

1. Typesetting: http://www.ipaiban.com/

2. Xiumi WeChat graphic and text typesetting tool: http://xiumi.us/#/

3. 135 WeChat Editor: http://www.135editor.com/

4. 96 WeChat Editor: http://bj.96weixin.com/

5. Yead WeChat editor: http://wxedit.yead.net/

6. Little Ant WeChat Editor: http://www.xmyeditor.com/

7. 91 WeChat Editor: http://bj.91join.com/

8. WeChat online editor: http://wx.bzrw.net/

9. 005 WeChat editor: http://bj.weixin005.com/

10. Music arrangement graphic and text editing tool: http://pb.ishangtong.com/

11. Beauty editor:

http://www.imeibian.com/main.html

12. Tianxing WeChat Editor: http://tx.huceo.com/

13. Xiudodo graphic editor: http://xiudodo.com/

14. Xiaoyi WeChat Editor: http://xiaoyi.e7wei.cn/

15. WeChat Circle Typesetting Assistant:

http://www.weixinquanquan.com/wxeditor

5. Short link generation tool

Compress the original long address into a short link with fewer letters. This conversion helps save space, facilitates storage, and is more concise and beautiful.

The following five tools can generate short connections and support customized short connections:

1. Sina Weibo short link generator:

http://www.surl.sinaapp.com/

2. Webmaster Tools:

http://tool.chinaz.com/tools/dwz.aspx

3. T.IM short URL/short link generator: http://t.im/

4. Baidu short URL: http://www.dwz.cn/

5. I typesetting short link generator: http://xhr.so/

6. H5 production tools

H5 has rich expressive power and has become a new marketing trend in the mobile Internet era. It helps to create h5 marketing scenarios with more powerful communication and makes operations even more powerful.

Which ones are there? Let’s take a look:

1. Eqxiu: http://www.eqxiu.com/show

2. Rabbit Exhibition:

http://www.rabbitpre.com/store

3. Show production:

http://xiumi.us/studio/booklet#/for/new

4. Maka: http://maka.im/store

5. Close micro page:

http://www.zhichiwangluo.com/

6. First page: http://www.ichuye.cn/

7. Epub360 Yipai: http://www.epub360.com/

8. Vxplo:

http://www.ih5.cn/not-logged-in

9. Sohu Express: http://www.kuaizhan.com/

10. Easy Flyer: http://echuandan.com/

11. Liveapp scene application/Yunlai: http://www.liveapp.cn/

12. Wix: http://www.wix.com/

7. Online QR code generation tool

QR codes play the role of transmitting information, serving as platform entrances, identity credentials, etc. in WeChat, Weibo, the Internet, offline brochures, business cards and other carriers.

We recommend the following tools:

1. Forage: http://cli.im/

2. Liantu: http://www.liantu.com/

3. Xinma: http://www.xmesm.cn/

4. 59na: http://qr.59na.com/

5. Still like: http://ewm.rengzan.com/

6. wwei Weiwei: http://www.wwei.cn/

7. Q code: http://www.qmacode.com/

8. QR Stuff: http://www.qrstuff.com/

9. Visualead: http://www.visualead.com/

10. Littleidiot:

https://qrcode.littleidiot.be/

8. Data statistical analysis website

In the era of big data, data mining, processing, analysis and application are particularly important. Data can provide a strong factual basis for strategies and strategies; it is the basis for enterprises to achieve precise marketing; and it is also the criterion for judging results. For Internet operators, in addition to paying attention to industry big data, they must also focus on the traffic data within the website.

The following data statistical analysis websites may be used:

1. iResearch: http://www.iresearch.cn/

2. TalkingData:

http://www.talkingdata.com/

3. CNZZ: http://www.cnzz.co

4. Baidu statistics:

http://tongji.baidu.com/web/welcome/login

5. Baidu Index: http://index.baidu.com/

6. Baidu data: http://index.baidu.com/

7. Datahoop big data analysis platform: http://www.datahoop.cn/

8. Qianzhan.com:

http://www.qianzhan.com/qzdata/list/147.html

9. Data view: http://www.cbdio.com/

10. Analysys: http://www.analysys.cn/

11. China Statistics Network:

http://www.itongji.cn/cms/article/index

12. Website data analysis:

http://webdataanalysis.net/

13. Ali Index: http://index.1688.com/

14. 199IT: http://www.199it.com/

15. Website analysis in China:

http://www.chinawebanalytics.cn/

16. DCCI Internet Data Center: http://www.dcci.com.cn/

17. 36 big data: http://www.36dsj.com/

9. Emoticon making tools

The emoticons that have maxed out the Moments, WeChat, Weibo, QQ circles, and even traveled to Facebook, Instagram, and Twitter are simply cool. For the majority of operators, emoticon materials are often used, such as occasionally inserting an emoticon into an article to make it appear relaxed and humorous.

We recommend the following three emoticon creation tools:

1. Rampage comic maker:

http://baozoumanhua.com/makers

2. Doubean Software Network: http://www.doubean.com/

3. Love Dou Tu (Dou Tu Artifact):

http://www.adoutu.com/pages/index.php

10. Image processing software

1. Beautiful pictures

2. Photoshop (PS)

3. Adobe Illustrator (AI)

4. Keniu Image (image processing software)

5. Inpaint (watermark removal software)

6. Light and shadow magic hand (improving image quality)

7. SAI painting software

11. Operation/product/entrepreneurship/IT and other online learning platforms

On the long road of operation, you will always encounter certain problems that you cannot figure out even after racking your brains; some obscure knowledge cannot be found even by wearing iron shoes. At this time, someone is especially needed to give guidance. Online communication and sharing is one of the effective ways.

1. Qidian Academy: http://www.qidianla.com/ (products, operations)

2. Three classes: http://www.sanjieke.cn/ (product, operation)

3. Mantou Business School: http://www.mtedu.com/ (products, operations, marketing)

4. Socket Academy: http://www.chazuomba.com/ (new media)

5. Dark Horse Academy:

http://xueyuan.iheima.com/ (Entrepreneurship)

6. ViewSonic Business School: http://www.yopai.com/ (ASO)

7. MOOC (IMOOC): http://www.imooc.com/ (IT)

8. Geek Academy:

http://www.jikexueyuan.com/（IT）

9. 25 School: http://www.25xt.com/ (main APP)

10. MOOC Academy: http://mooc.guokr.com/ (comprehensive)

11. NetEase Cloud Classroom: http://study.163.com/ (comprehensive)

12. Tencent Classroom: https://ke.qq.com/ (comprehensive)

13. Operate Xiaoka Show (main APP operation)

14. Gulu Academy (main operation)

15. After having an account (main new media, public account)

16. Micro-interaction (main public account operation)

17. i typesetting (main WeChat operation, typesetting)

18. Rabbit exhibition hall (main h5)

19. Activity Box Operation Academy (coming soon)

12. Advertising/design creative website

Advertising requires creativity, design requires creativity, and operations actually also require creativity. The stimulation of inspiration can bring about new creations; the occasional brainstorming can lead to a flash of new ideas.

The editor of Tianmu feels that the following novel and creative websites can bring about the divergence of thinking and the emergence of inspiration:

domestic:

1. TOPYS: http://www.topys.cn/

2. UI Chinese inspiration library: http://idea.ui.cn/

3. Design addiction: http://www.shejipi.com/

4. Visual ME design community: http://shijue.me/

5. Design youth: http://www.design521.com/

6. Oritive creative design: http://www.oritive.com/

7. Creative photo site: http://www.poboo.com/

8. Online advertising community: http://iwebad.com/

9. Lazy person gallery:

http://www.lanrentuku.com/

10. China Advertising Network: http://www.cnad.com/

11. Advertising: http://adfuns.com/

12. Meihua Network: http://www.meihua.info/c

13. Creative Network: http://www.fsdpp.cn/

14. Visual China: http://creative.vcg.com/

15. Advertising portal: http://www.adquan.com/

16. Design at 2:30: http://www.2dianban.com/

17. Shuying.com:

http://www.digitaling.com/

foreign:

1. Inspiration Grid:

http://theinspirationgrid.com/

2. siteInspire:

https://www.siteinspire.com/

3. Dribbble: https://dribbble.com/

4. welovead:

http://www.welovead.com/cn/

5. AdSoftheWorld: http://adsoftheworld.com/

6. Framelab Design Direction: http://www.frmlb.de/

7. Cargo:

http://cargocollective.com/

8. boredpanda:

http://www.boredpanda.com/

9. Creativebloq:

http://www.creativebloq.com/

10. Creative Guerrilla Marketing:

http://www.creativeguerrillamarketing.com/ (need to circumvent the firewall)

13. Mind mapping software/website

Use the technique of paying equal attention to pictures and texts to express the relationship between topics at all levels with hierarchical diagrams of mutual affiliation and correlation, and establish memory links between topic keywords, images, colors, etc. Mind maps are highly logical and can build a framework that is clear at a glance. They are simple and easy to read and remember. They are an important tool for listing key points and outlines.

We recommend the following mind mapping tools:

1. XMind mind mapping software:

http://www.xmindchina.net/ (software)

2. Mindjet mind mapping software:

http://www.mindmanager.cc/ (software)

3. FreeMind mind map:

http://freemind.en.softonic.com/ (software)

4. iMindMap mind mapping software: http://www.imindmap.cc/ (software)

1What is USDT

Since the birth of Bitcoin, the cryptocurrency market has developed to a market value of 400 billion, with more than 1,800 cryptocurrencies issued, and hundreds of cryptocurrency exchanges appearing. However, due to the unclear supervision of local governments, it is difficult for exchanges to obtain support from banks. The connection between legal currency and cryptocurrency has become a big problem, and USDT was born as a result.

USDT is Tether USD (referred to as USDT), a token based on the stable value currency U.S. dollar (USD) launched by Tether. 1 USDT = 1 U.S. dollar.

Tether tokens are issued on the Bitcoin network in accordance with the OMNI layer protocol and can be naturally sent on the Bitcoin network. Users can wire USD to a bank account provided by Tether via SWIFT, or exchange for USDT through an exchange. When redeeming USD, just do the reverse operation. Users can also exchange Bitcoin for USDT on the exchange.

Tether is located in Hong Kong. When users deposit legal currency into the company, they can obtain an equivalent amount of tokens issued by the company. The tokens can be used for transfer transactions. Any user holding Tether tokens can exchange the tokens for legal currency at a ratio of 1:1 (minus remittance fees) as long as they complete user authentication at Tether. Currently it supports the US dollar (USDT) and the euro (EURT), which are hosted in different banks, and will also support the Japanese yen in the future.

This model is similar to the issuance of legal currency. Here, the legal currency is the reserve, and the tokens on the chain are the newly issued legal currency. The company Tether acts as the central bank.

In exchanges that have listed Tether tokens, the prices of USDT and USD are basically anchored at 1:1, with little fluctuation. A small amount of fluctuations also exist, often due to the influence of market supply and demand. For example, when the market is hot, USDT, which is a legal currency entry channel, is in short supply on the exchange, causing the price to rise.

USDT Features

Tether claims to have 100% asset reserves and users can exchange USDT back to US dollars on its platform at a ratio of 1:1. At present, USDT has become the basic anchor currency of mainstream exchanges, with a circulation of 2 billion US dollars, and the price has basically remained stable at 1 US dollar.

2The operating mechanism of stablecoins

1. Centralized legal asset mortgage model

The first is through centralized legal asset mortgage. Such as Tether (USDT) or TrueCoin launched by TrustToken (such as TrueUSD).

USDT is a virtual currency issued by Tether. The former's current market value is approximately US$2.275 billion, accounting for about 90% of the entire stablecoin market share. This is what their white paper says.

“Tethers is a digital currency linked to legal currency. All Tethers are first issued in the form of tokens on the Bitcoin blockchain through the Omni Layer protocol. Each issued Tethers is linked to the US dollar one-to-one, and the corresponding total amount of US dollars is stored in Hong Kong Tether Co., Ltd. (that is, one Tether coin is one US dollar).

With Tether Limited's terms of service, holders can redeem/exchange Tethers with their equivalent fiat currency, or exchange them for Bitcoin. The price of Tether is always linked to the price of legal currency, and the storage amount of its linked currency is always greater than or equal to the amount of currency in circulation.

To put it simply, Tether promises that for every USDT they issue, they guarantee that at least 1 US dollar will be deposited in the bank at the same time, and USDT holders can exchange it for US dollars or Bitcoin at any time. This is to ensure the stability of USDT value.

Tether's method of achieving stable currency value is simple and clear, but it also has obvious drawbacks.

As some critics have pointed out, Tether suffers from the same problem as traditional centralized financial institutions, which is centralization. You need to bear the following risks:

Put aside these capabilities, reserves, policy risks, and moral trust risks. If currency issuance institutions lack supervision, it will be difficult to avoid over-issuance, spam issuance, and black-box operations, and it will also be difficult to avoid gradually becoming opaque driven by huge profits.

Circle CEO Allaire said: "Users now handle fiat currencies through things like Tether, but we see a lot of weaknesses and challenges with Tether."

Generally speaking, the implementation methods of this type of scheme are very simple and can effectively solve the floating risk. There are rarely huge fluctuations, but they bring credit risk. We need to fully trust the institutions behind it, and there will be no over-issuance, spam issuance, misappropriation of funds, or secret operations. If one day the company and the trust behind it collapse, this centralized approach will bring huge systemic risks.

2. Cryptoasset mortgage model

The second common way is to use crypto assets as collateral. Because decentralized crypto assets/tokens themselves run on the blockchain, they naturally solve trust risks and are easy to audit.

Crypto-asset mortgages are usually implemented in this way: for every 1 yuan of stable currency issued, N times (N>1) of other crypto-currency assets are deposited as collateral. The collateral is stored in a smart contract, in which Ethereum can be used to pay off the debt of the stablecoin, or it can be automatically sold by the contract software when the total price of the stablecoin falls below a certain threshold.

These features of a collateral-backed stablecoin make it unnecessary to rely on a centralized institution.

But as mentioned at the beginning of this article, cryptocurrencies themselves are extremely unstable. Therefore, binding cryptocurrencies to achieve value stability solves the trust risk, but it itself has floating risks:

Because the value of collateral will fluctuate, ensure that the unit's stablecoin is adequately collateralized. It's okay if the collateral appreciates, but if the collateral depreciates, the system needs to respond to this. We need to ensure that the collateral value per unit currency is always greater than 1.

Otherwise, once there is a huge fluctuation in the market or a black swan event, and the collateral value is seriously lower than the face value of the corresponding token, the position will be liquidated. Although we have not experienced such a large-scale collapse in the cryptocurrency market so far, it is entirely possible – just like a mortgage on real estate, the collateral depreciates rapidly and the risk of the entire system collapsing increases. This is how the sub-credit crisis of 2008 occurred.

The most terrifying animal in finance, the black swan

Taking DAI launched by MakerDao as an example, when the value of the collateral falls below a certain liquidation value, it will be liquidated. The collateral will be used to repurchase DAI from the market to pay off debt. For example, if 1 USD of DAI uses 3 USD of Ethereum as collateral, but if one day the Ethereum currency suddenly depreciates to 10% and is only worth 0.3 USD, then DAI will lose its value support and the system will be liquidated.

At the same time, assuming that we have to deposit $150 worth of Ethereum in exchange for $100 worth of DAI is a mistake that is simply inefficient. The easier way seems to be to go directly to the exchange and buy $100 worth of DAI for $100, and still have $50 left in your hand…

However, the advantages and benefits of this method of encrypted asset mortgage are also obvious. The first is decentralization, and the second is transparency. Everyone can openly see the fluctuation of the value of the collateral, so if it really collapses, the algorithm itself will be executed mindlessly.

DAI has many application scenarios, such as short-term hedging and trading, because we can see the actual value of the collateral. The short-term risk is very small, but long-term use may cause systemic risks such as black swan events.

3. Algorithmic Banking

Different from the first two operating mechanisms that require collateral, the third way to achieve stable currency is algorithmic banking.

The earliest idea of ​​algorithmic banking came from Seignorage Shares proposed by Robert Sams in 2014. The basic idea is: the supply of tokens is elastic. When the supply exceeds demand, the supply of tokens is reduced. When the supply exceeds demand, the supply of tokens is reduced. When the supply exceeds demand, the supply of tokens is increased, thereby controlling its price.

Is it somewhat similar to how in the real world the central bank maintains the purchasing power of currency by adjusting interest rates, liquidity, and foreign exchange reserves?

Take the more famous base coin as an example. Basecoin realizes the adjustment of circulation through the three-token mechanism. The three tokens are:

**Base currency:** The core token of the system, its role is to anchor the US dollar at a 1:1 ratio, and to maintain this anchoring through the expansion and contraction of its own circulation;

Bond coin: used to regulate the circulation of tokens. When the market price of the base currency is lower than 1 US dollar, the circulation of the base currency must be reduced. At this time, a bond pen auction will be held according to the smart contract system. Bond coins themselves are not anchored to assets. During the auction, the price of bond coins gradually decreases from 1, and the token holder will eventually spend less than 1 unit of base coins to obtain 1 unit of bond coins. The system promises that when new coins are issued in the future, the new tokens will be used to pay off the bond coins 1:1. This price difference will attract token holders to buy.

At the same time, the system destroys or freezes the tokens obtained from the auction, which completes the task of reducing the circulation of tokens.

When the market price is higher than the face value and the circulation of tokens needs to be expanded, the system starts minting coins. The new coins minted are first used to redeem bondholders. As stated above, new coins will be issued at a 1:1 ratio of the face value of the bonds. When bonds are redeemed, they are redeemed sequentially according to the time of bond issuance.

**Equity Coin:** Its quantity is fixed, and the equity itself is not anchored to any asset. The value of the equity comes from the dividend policy when the system issues new tokens.

That is, when executing the token circulation expansion task, if the bonds of all current creditors (bond currency holders) are redeemed and there are still tokens left to be issued, tokens will be issued to equity holders in proportion to their equity currency holdings. In this way, the number of tokens circulating in the market will be increased, which will effectively adjust the token price (pull-down).

It is not difficult to see that through the above mechanism, the contraction and expansion of token circulation can be effectively realized, thereby maintaining the stability of token prices.

However, the problem faced by currencies such as base coin that achieve stability through algorithmic banks is that the market needs to continue to be optimistic about it. Only in this way can it sell the bond coins when it issues them, thus bringing the price of the currency back to $1. Otherwise, we will fall into a terrible death spiral.

In the face of possible trust crises and attacks, Basecoin has designed some mechanisms to allow the system to recover from the death spiral, such as setting the maturity period of the bond. After a certain period of time, the repayment obligation will not be fulfilled (default). However, it is not yet known whether it can withstand the test of time.

The design of a collateral-less stablecoin is ambitious and independent of all other currencies. Even if the dollar collapses, a coin that requires no collateral can survive as a stable store of value. Unlike national central banks, uncollateralized stablecoins do not have perverse incentives to spam money. Its algorithms have only one mission: to achieve stability.

It’s an exciting possibility, and if successful, collateral-free stablecoins could revolutionize the world. But if it fails, it will be extremely catastrophic because there is no collateral to liquidate the tokens back and it will almost certainly collapse to zero.

Interestingly, although Robert Sams himself is the proposer of Seignorage Shares, he is not working on this project himself, but is working on other blockchain projects. Previous similar attempts include Peercoins’ Nubits, including the previous BitShares’ bitcny, which also suffered sharp declines and are currently not widely used. It can be seen that the implementation of this solution is indeed not as simple as imagined.

3 Reasons for the “mysterious” existence of USDT

USDT has always been questioned due to non-disclosure of audits, centralization, and alleged over-issuance to manipulate the price of Bitcoin. Some even regard USDT as a Ponzi scheme. Some other stablecoin (anchored currency) alternatives have also appeared on the market, such as TrueUSD supported by the Bittrex exchange and MakerDAO's Dai. Recently, Bitmain led a US$110 million investment in Circle, which announced that it would release a stable currency USD Coin in an attempt to replace USDT.

I will start from the source and analyze the nature of stablecoins, the reasons for the success of USDT, the problems that other stablecoins need to avoid, and how to compete with USDT.

In general, most people misunderstand USDT. Its "mysterious" existence has its own reasons. It is very difficult to replace USDT. Most stablecoin contenders are probably going in the wrong direction.

1. The difference between stablecoins and tokens – why the controversial USDT is successful

First, we need to understand that the stablecoin market is fundamentally different from other cryptocurrency markets (such as Ethereum, EOS, etc.). The stablecoin market is a money market, while other cryptocurrencies are closer to the stock market.

Nobel Prize winner in economics and Swedish economist Bengt Holmström has made a clear comparison between the two. For details, see his paper "Understanding the role of debt in the financial system" (the Wisdom Institute has also analyzed this paper) and his 2017 speech "Debt and Money Markets".

In Bengt's view, the currency market is fundamentally different from the stock market. The stock market is there to provide risk sharing, while the currency market is there to provide liquidity. An important point is that currency markets are inherently opaque, and opacity can provide better liquidity in many cases.

Bengt cited several examples. When diamond group DeBeers wholesales diamonds, it only allows buyers to check whether the correct diamonds have been shipped correctly, but does not allow them to check the details of each diamond. This is because buyers will be picky and try their best to choose the best diamond package, which greatly increases transaction costs and transaction volume. Instead, DeBeers guarantees the quality of its diamonds with its good reputation and collateral. By the same example, the Fed will not announce the specific banks that lend to its discount window because this would create a liquidity premium.

A similar phenomenon can be seen in Taobao stores. Taobao does not require stores to disclose all the details of each product and take photos of each buyer when each transaction occurs. A better approach is to ask merchants to pay a deposit and highlight the role of store reputation and evaluation.

**Opacity can increase liquidity, but that doesn’t mean we don’t need transparency. Providing valid, aggregated information contributes to liquidity more than providing raw information. **This is most vividly reflected in USDT. The official website of Tide Company has a dedicated "transparency" page, which records the asset balance and the issuance quantity of USDT.

However, since the audit company it cooperated with terminated its cooperation, Tide Company has not provided a detailed audit report (the most recent one was in September last year), nor has it proved whether all assets are in US dollars. This is also one of the reasons why people question the over-issuance of USDT.

*Tether official website description: There are 100% real assets behind all USDT

In fact, this opacity at Ted is actually intentional. Providing only aggregated information is more conducive to the liquidity of USDT. Asset reserve is a vague term. I don't know what the real assets behind USDT represent, but neither does anyone else. "Symmetric ignorance" in the market has reached an equilibrium – no one knows the asset composition behind USDT, but still uses USDT.

2. Complete transparency and 100% USD reserves are not good medicine – the fatal flaw of TrueUSD

Doesn’t Tether’s approach run counter to the spirit of transparency and decentralization pursued by the blockchain? This is indeed the case, and because of this, other US dollar-anchored stablecoins have appeared on the market, trying to replace USDT with a more "blockchain approach."

For example, Bittrex exchange supports anchoring TrueUSD (TUSD), and users can get 1:1 TUSD by depositing US dollars. Unlike USDT, TrueUSD 1. Guarantees full US dollar reserves and provides regular audits. 2. Implement strict standards of KYC/AML verification. 3. Independent hosting, no need to deal with the TrueUSD project team. These three major features seem to be "improvements" to USDT. Will they be advantages in the actual market?

TrueUSD's current market value only accounts for 1/250 of USDT. Of course, this is related to the fact that TrueUSD is still in its early stages, but a recent incident almost caused TrueUSD to be detached from the US dollar. A week ago, Binance, the world's largest exchange, announced that it would launch TrueUSD and open the TUSD/BNB, TUSD/BTC, and TUSD/ETH trading markets.

This is originally a good thing for TrueUSD. More people trading and using TUSD will inevitably increase its market share and acceptance. However, the result was massive price fluctuations in TUSD.

The picture below is the TUSD price chart before Binance released the news:

Despite the fluctuations, TUSD has always been able to maintain a price of around $1.

But after Binance announced that it would list TUSD:

The price of TrueUSD surged on exchanges where it was listed, reaching a maximum of 1.3 TUSD = 1 USD. Many investors regard TUSD as an ordinary token. After discovering the news that Binance will list TUSD, they immediately go to other exchanges to try to "buy the bottom", which causes the price of TrueUSD to skyrocket.

Market participants treat the currency market (information insensitive) where TrueUSD belongs to as the stock market (information sensitive). In fact, in the case of severe information asymmetry, a temporary premium is normal. As long as there is sufficient liquidity, the premium can be eliminated quickly. However, the mechanism of TrueUSD buried its fatal flaw, which also caused it to be decoupled from the US dollar for nearly half a day.

TrueUSD emphasizes strict KYC. Generally, users who want to exchange their US dollars into TUSD at a 1:1 ratio need to fill in a detailed form and wait for more than a few weeks.

This means that it is difficult for ordinary market participants to act as liquidity providers and smooth out market premiums. At the same time, due to TrueUSD's pursuit of independent custody, the team itself does not have sufficient capital reserves and market-making policies, and is unable to respond to market conditions in a timely manner when a crisis occurs.

The next day, Binance issued a notice that it would delay the listing of TUSD: the TrueUSD team needs sufficient time to meet liquidity.

It can be seen that the TrueUSD team is aware of the shortage of liquidity, but the flaws embedded in its mechanism cannot fundamentally solve this problem. Other anchored coin products appear to be following TrueUSD's path. Last week, Bitcoin Continent led a $110 million investment in Circle, which will develop USD Coin and also claims to provide transparent auditing and complete U.S. dollar reserves. As mentioned above, this direction is likely to go against the core of money markets – providing efficient liquidity.

Complete transparency sometimes reduces the efficiency of liquidity. Complete US dollar reserves limit currency-generating assets to fiat currencies, but in reality currency-generating assets are far more than fiat currencies, but include various other debt or asset derivatives. Regarding the money creation of modern banks, it is recommended to read the Bank of England's paper "Money creation in the modern economy (Money creation in the modern economy)"

**3. Alternatives and Breakthrough Points **- Over-collateralization model taking Dai as an example

**Is USDT risk-free? Of course not. As mentioned above, the circulation of USDT is based on the equilibrium reached by people's "symmetric ignorance", but this opacity pushes the risk to the end. **Users and some exchanges regard USDT as a "time bomb" that is used as a last resort. If the banks that Tide cooperates with default, or Tide's reserve assets plummet, or the government bans Tide Company, this black swan event will break the current equilibrium and trigger a domino effect, and the entire cryptocurrency market will face an economic crisis or even collapse.

How to compete for a place in the current equilibrium while providing hedging options for the cryptocurrency market during the USDT crisis?

Here is a brief introduction to some basic theories of game theory. **Nash equilibrium is when, given the current reward, market participants have no incentive to move to any other point, so they stay in their current state. **Nash equilibrium does not represent the global optimal equilibrium, but can be a suboptimal equilibrium (there are better options that can benefit the whole world, but people are unwilling to move because any move will not bring higher benefits to individuals). The classic example is the prisoner's dilemma.

The current stable currency market can be said to be in a suboptimal equilibrium: **People realize that USDT may not be the best choice, but individuals have no incentive to try other stable currencies. **Therefore, even if the mechanism becomes better, it will be very difficult for TrueUSD and Circle to challenge or replace USDT in the same field.

Giving market participants new returns and creating another equilibrium paradigm is a more rational (perhaps the only) breakthrough point. This requires that it is fundamentally different from USDT (higher than the level of supervision and auditing) and that it can ensure efficient liquidity.

**Over-collateralization is a feasible and widely used method in financial markets. **The creation of liquidity by over-collateralization is not a new thing. It originated from pawnshops in ancient China. Pawnshops allowed liquidity demanders and providers to quickly obtain liquidity without having to undergo a price discovery process. For example, someone is willing to sell a collection of famous paintings to obtain liquidity, but the accurate valuation of famous paintings is a very costly matter. Instead of bargaining, the pawnshop can give the holder of the famous paintings a loan that is significantly lower than its value, and then both parties agree to pay off the loan and interest within a specified time, and the famous paintings return to their original owners. This ancient but very effective method has continued into the modern financial repo market. (The repo market is an important money market, accounting for nearly $3 trillion in market capitalization).

The most successful project based on this model so far is the MakerDAO project, whose stablecoin Dai is issued through over-collateralized assets. The innovation is that its collateral is on-chain assets such as Ethereum, which can provide liquidity at a low cost based on smart contracts (anyone can obtain liquidity by over-collateralizing Ethereum assets). The issuance model of asset mortgages on the chain encourages people to spontaneously mortgage funds, enriches the sources of liquidity, and eliminates the need for centralized gateways and custody, eliminating people's doubts about central institutions (since the mortgage process is all on the chain, sufficient transparency is provided).

Over-guarantee and automatic liquidation themselves avoid the cost of price discovery and the liquidation of risky debt.

Even if Dai experiences temporary illiquidity, any market participant can generate liquidity by staking at a cost of $1 to even out the premium in the form of arbitrage.

*Since its launch in 2012, the price of Dai has remained basically stable at $1.

Importantly, Dai does not directly compete with USDT for the traditional exchange market. Dai's decentralized issuance and its own ERC20 standard make it the first choice for decentralized exchanges and applications, and serves as the base currency on many decentralized exchanges (even including some traditional exchanges). This creates another equilibrium paradigm (base currency for decentralized exchanges and applications) by giving market participants new rewards (collaterals).

4 words written at the back

This article introduces the nature of stablecoins and people’s misunderstandings when understanding USDT, and analyzes several major stablecoin models and prospects. The development of stablecoins is still in a relatively early stage. It is foreseeable that USDT will still dominate the stablecoin market in the short term, and with the follow-up of supervision, the development of the blockchain itself and the emergence of new technologies, the current situation may change.

What does usdt mean?

USDT is the English abbreviation of Tether, a stable currency based on blockchain technology and issued by Tether. The following is a detailed introduction to USDT:

· Anchoring mechanism: USDT is anchored to the U.S. dollar, that is, 1 USDT ≈ 1 U.S. dollar. Its value is relatively stable with minimal fluctuations (usually within ±0.1%).

· Issuance principle: Tether claims that for every USDT issued, there will be an asset reserve of one US dollar. Customers can pay USD to Tether in exchange for an equivalent amount of USDT, or they can use USDT to exchange for an equivalent amount of USD to Tether. However, after Tether acquires funds by issuing USDT, it will retain a certain proportion of cash deposits to meet customers' withdrawal needs, and the rest will be used to purchase treasury bonds, bills, gold and other assets for reserves.

· Application scenarios

· Cryptocurrency trading medium: When the prices of cryptocurrencies such as Bitcoin and Ethereum fluctuate violently, users often convert their assets into USDT to avoid losses on currency holdings. In addition, more than 90% of cryptocurrency exchanges support USDT trading pairs. Users can indirectly buy and sell other niche cryptocurrencies through USDT without directly using legal currency to exchange, which lowers the transaction threshold.

· Cross-border payment and fund transfer: USDT transfer through the blockchain only takes a few minutes, and the handling fee is usually less than 1 US dollar. It is especially suitable for foreign trade practitioners and overseas workers to make small cross-border remittances. In some countries with strict foreign exchange controls, people can also use USDT to bypass the risk of local currency depreciation and achieve cross-border transfers of assets.

· Market size: As of the beginning of 2025, the market value of USDT is approximately US$157.6 billion, accounting for more than 60% of the total market value of global stablecoins. The average daily trading volume exceeds US$60 billion, far exceeding Bitcoin (average daily trading volume is approximately US$20 billion). It supports more than 500 exchanges and 2,000+ cryptocurrency projects, and more than 30 million users around the world use USDT.

· Potential risks: Due to the anonymity of USDT (blockchain addresses are not real-name) and global liquidity, it has been abused in scenarios such as money laundering and cross-border illegal fund transfers. In addition, USDT has caused a crisis of confidence because its reserve assets include non-cash assets such as commercial paper and corporate bonds (rather than 100% US dollar cash). If there is a large-scale redemption in the market in the future, it may trigger a "run" and lead to de-anchoring.

A brief introduction to Tether company! Tether is a stablecoin issuance company headquartered in El Salvador. It is operated by Bitfinex and its CEO is Paulo Ardoino.

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In 2014, Realcoin, the predecessor of Tether, was founded by three co-founders: Brock Pierce, Reeve Collins and Craig Sellars. It was renamed Tether in November of the same year.

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. The Tether currency (USDT) issued by Tether is the world's first stable currency and can be exchanged with currencies such as the US dollar, euro, and offshore renminbi at a certain ratio.

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. The working principle is that users deposit fiat currency into a Tether account, Tether issues tokens and sends them to the user's wallet. The tokens can be used for transactions, etc. Users can also exchange the tokens for fiat currency, and Tether removes the tokens from circulation and returns the equivalent amount of fiat currency.

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As of the first quarter of 2025, Tether's total assets were US$149.3 billion, total liabilities were US$143.7 billion, and net equity was approximately US$5.6 billion.

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. In 2024, Tether's net profit reached US$13 billion, and it directly and indirectly held US$113 billion in US Treasury bonds. In July 2025, Tether also stated that it had nearly 80 tons of gold in Switzerland.

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Tether has also experienced some twists and turns during its development. For example, it suffered a hacker attack in 2017, was sued by the New York State Attorney General in 2019, and reached a settlement with the New York State Attorney General in 2021 and paid a fine of US$18.5 million.

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(Note: There are risks in the stock market, so investment needs to be cautious. This article is only for sharing industry information and does not constitute investment advice.)

Estimated reading time: 10min

Any views expressed in the below are the personal views of the author and should not form the basis for making investment decisions, nor be construed as a recommendation or advice to engage in investment transactions.

We know that when you first enter the NFT world, you may encounter obstacles everywhere, and you may feel confused.

So, Hubbleverse is here, Hubble Metaverse brings you the NFT collection!

This is a must-have introductory guide for NFT people, which contains many NFT terms you need to know. From NFT novice to NFT master, let this article be your starting point to enter the NFT world!

We know getting onboarded to the NFT world can be daunting. That's why we've put together the NFT Dictionary.

This is a living document that captures all the terms you'll need to know to go from NFT to NFT enthused. With this in mind, remember that this document is for you.

Blockchain – Blockchain

Blockchain is a distributed database used to securely store data and information in a publicly accessible manner. Rather than relying on a single centralized server, blockchain-powered cryptocurrency networks store data on distributed devices (nodes) around the world.

Ethereum – Ethereum

Due to its size and security, Ethereum is the main blockchain used in the Web3.0 ecosystem. It is the most popular blockchain for NFTs for the same reason.

Blockchain

Blockchains are distributed databases used to securely store data and information in a publicly accessible way. Rather than relying on a single centralized server, blockchain-powered crypto networks store data across distributed devices (nodes) worldwide.

Ethereum

Ethereum is the primary blockchain used in the Web3 ecosystem due to its size and security. It's the most popular blockchain for NFTs for the same reason.

NFT – Non-Fungible Token non-fungible token

NFT is a digital token of information (data) that exists on the blockchain. Each NFT has its own identification code and metadata. Therefore, NFTs are unique and non-fungible, that is, they are "irreplaceable/unforgeable." For more details, please click here to read Hubbleverse’s previous post What is NFT? You don’t know it yet!

NFT Roadmap – NFT Roadmap

The NFT project roadmap is a bit like an investment deck. It is a document that describes the goals, milestones and strategies of the NFT and is used to convey the value and utility of the project.

Gas Fee – Mining fee

Gas fee is a fee paid by individuals to complete transactions on the blockchain and is used to compensate blockchain miners for the computing power they must use to verify blockchain transactions.

NFT

An NFT is a digital token of information (data) that lives on a blockchain. Each NFT has its own identification code and metadata. As a result, NFTs are unique and non-interchangeable ie, they are “non-fungible”. For more information, click here What is an NFT? You don’t know it yet!

NFT Roadmap

An NFT project roadmap is a bit like an investment deck. It's a document that maps out the goals, milestones, and strategies of an NFT project to communicate the project's value and utility.

Gas Fee

A gas fee is the payment individuals make to complete a transaction on a blockchain. These fees are used to compensate blockchain miners for the computing power they have to use to verify blockchain transactions.

Gas War – Gas War

Gas wars occur when users compete over whose transactions will get priority in the next block of the blockchain. Gas wars are common during popular NFT drops, as there are many people competing for a limited supply of NFTs.

Mint – Mint

Simply put, minting is the act of adding, verifying, and recording NFTs on the blockchain. Once minted, the NFT is available for public consumption and can be viewed, purchased, and traded on the open market. For more details, please click here to read Hubbleverse’s previous article I heard you are interested in Writing NFT?

1/1 – Unique

A one-of-a-kind piece of art or NFT is completely exclusive and a second one will never be manufactured.

Gas War

A gas war happens when users compete over whose transaction gets priority in the next block of the blockchain. Gas wars are common during popular NFT drops, as many people are competing over a finite number of NFTs.

Mint

In simple terms, minting is the act of adding, validating, and recording an NFT to the blockchain. Once minted, the NFT is available for public consumption and can be viewed, bought, and traded on the open marketplace. For more information, click here I heard you are interested in Writing NFT?

1/1

A one-of-one artwork or NFT is completely exclusive, never to be made again.

Limited Edition – limited edition

For limited edition NFT collections, the number of NFTs that can be minted is limited. Many limited edition collections include 10,000 editions.

Open Edition – Open Edition

For open version NFT collections, any number of NFTs can be minted. However, don’t confuse “open” with “infinite”, many open version NFTs limit the time period during which coins can be minted.

PFP – Profile Picture

Profile picture (PFP) NFT is a digital token or artwork used as a personal social media avatar. Many of the world's popular NFT collections, such as CryptoPunks and Doodles, are PFP.

Limited Edition

A limited edition is an NFT collection in which there are a finite number of NFTs available to be minted. Many collections consist of 10,000 editions.

Open Edition

An open edition is an NFT collection where any number of items can be minted. However, don't confuse “open” with “unlimited.” Many open editions are only available to mint for set periods of time before they're gone.

PFP

A profile picture (PFP) NFT is a digital token or artwork that is designed to be displayed as a person's social media profile picture. Many of the world's most popular NFT collections (like CryptoPunks and Doodles) are PFPs.

Floor Price – base price

The base price of an NFT collection is the lowest listing price of the entire series. The value of a collection is usually determined by its reserve price.

Whitelist – Whitelist

Users in the whitelist have the right to purchase NFT collections in advance before the project is made public. Whitelisting, which serves as a way to attract the masses before a public release, is usually smaller and consists of a carefully selected group of users by the NFT creator.

Art Reveal – Unveiling of Artwork

The unveiling of the artwork is often the most exciting moment for the release of an NFT collection. After a period of waiting, the holders and the public can finally see the special artwork they minted.

Floor Price

The floor price of an NFT collection is the lowest listed price in the entire collection. The value of a collection is often dictated by its floor price.

Whitelist

A whitelist is a group of users who are given early access to purchase an item from an NFT collection before the project is publicly available. The whitelist is usually small in size, with a select group of users who are handpicked by the NFT creators as a way of generating interest before the public mint.

Art Reveal

The art reveal is often the most exciting moment in an NFT collection launch where, after a period of waiting, holders and the general public can finally see the specific artwork they've minted.

Airdrop – Airdrop

Airdrop refers to the distribution of NFTs or tokens directly to users’ wallets, usually for free. Exclusive airdrops are sent to holders of specific NFT collections or cryptocurrencies as a thank you for their loyalty. Airdrops are a great way for blockchain projects to attract new users or incentivize existing users.

Hot Wallet – Hot wallet

A hot wallet is an online digital wallet that is connected to the blockchain and allows you to store, send, and receive coins. With an internet connection and your private key, you can access it from any device, anywhere in the world. Because they are connected to the Internet, hot wallets are often insecure and vulnerable to hacker attacks. MetaMask is a hot wallet.

Cold Wallet – cold wallet

A cold wallet is a more secure, offline storage cryptocurrency wallet. Cold wallets include paper wallets and hardware wallets. A hardware wallet is a physical device, and many hardware wallets look a lot like USB flash drives.

Airdrop

Airdropping is the process of distributing NFTs or coins directly to users' wallets, often for free. Exclusive airdrops are sent to holders of a specific NFT collection or cryptocurrency as thanks for their loyalty. Airdrops are a great way for blockchain projects to attract new users or reward existing ones for their support.

Hot Wallet

A hot wallet is a digital wallet that is kept online. It's connected to the blockchain, allowing you to store, send, and receive tokens. It can be accessed from any device, anywhere in the world, as long as you have an internet connection and your private keys. Since they are connected to the internet, they tend to be less secure and subject to hacking. MetaMask is an example of a hot wallet.

Cold Wallet

A cold wallet is a more secure kind of cryptocurrency wallet that is stored offline. Examples of cold wallets include paper wallets and hardware wallets. Hardware wallets are physical devices, many of which look like USB drives.

Royalty – Royalty

Royalties are a set amount of money a person receives for owning, creating, or licensing a work. Whenever someone sells their work in the NFT market, the creator receives a secondary royalty or a predetermined percentage of the sales price.

Smart Contracts – smart contracts

A smart contract is a computer program that exists on the blockchain. It is controlled by basic "if/when…then" statements. For example, "If 'a' (event) occurs, then perform step 'b'." Once these predetermined conditions are met, the transaction is automatically executed and recorded on the blockchain.

Decentralized Applications – Decentralized applications

Decentralized applications (dApps) are just like any other website or application you use, except they are built and run on a decentralized network, such as the Ethereum blockchain.

DAO – Decentralized Autonomous Organization decentralized organization

A DAO (Decentralized Autonomous Organization) is an organization that runs on the blockchain through the use of smart contracts. For more details, please click here to read Hubbleverse’s previous post on how to launch the perfect DAO for the Web 3.0 world.

Royalty

A royalty is a set amount of proceeds that one receives in exchange for owning, creating, or licensing a work. Many NFT creators receive secondary royalties or a predetermined percentage of the sale price every time their work is sold on an NFT marketplace.

Smart Contracts

A smart contract is a computer program that lives on the blockchain. It is governed by rudimentary “if/when…then” statements. For example, “if 'a' happens, then execute step 'b.'" Once these predetermined terms are met, the transaction automatically executes and is recorded in the blockchain.

Decentralized Applications

Decentralized Applications (dApps) are just like any other website or application you use, except that these applications are built and run on top of a decentralized network, like the Ethereum blockchain.

DAO

A DAO (a decentralized autonomous organization) is a type of organization that is run on the blockchain through the use of smart contracts. For more information, click here How to launch the perfect DAO for the Web3.0 world.

P2E – Play-to-earn

Play-to-earn (P2E) is an online game where players earn utility tokens through excellent performance in the game.

Metaverse – Metaverse

The Metaverse is defined as the fusion of reality and virtual reality – as a digital extension of the real world.

Discord – Communication software

Discord is a voice, text and video instant messaging platform. Users can talk and share files in private messages or in more public communities called "servers." Each server can contain multiple chat rooms.

P2E

Play-to-earn (P2E) is a type of online game where gamers are awarded utility tokens for successful game performance.

Metaverse

The metaverse is best defined as a blending of physical and virtual reality — as a kind of digital extension of the real world.

Discord

Discord is a voice, text, and video instant messaging platform. Users can converse and share files in private messages or in more public communities called “servers.” Each server can contain a number of chat rooms.

CC0 – Creative Commons Zero Creative Commons License

Creative Commons Zero (CC0) is the most liberal form of copyright protection, in which creators must waive any copyright protection and allow the public to use, adapt, or profit from their work.

Staking – Equity pledge

Cryptocurrency staking is the process of locking proof-of-stake cryptocurrency in a wallet or exchange for a set period of time in exchange for interest rewards. The longer the cryptocurrency is locked, the greater the reward.

On-Chain – on the chain

On-chain refers to digital tokens that exist on the blockchain. The term is also used to refer to any transaction or interaction with a token or contract on the blockchain.

CC0

Creative Commons Zero (CC0) is the most liberal form of copyright protection in which creators must forgo any copyright protection and allow the public to use, adapt, or profit off of their work.

Staking

Crypto staking is the process of locking up a proof-of-stake cryptocurrency in a wallet or exchange over a set period in return for interest rewards. The longer the crypto is staked, the greater the reward.

On-Chain

On-chain refers to a digital token that lives on a blockchain. This term is also used to represent any transaction or interaction with a token or contract on the blockchain.

USDT is a stable currency issued by Tether. Its value is linked to the US dollar at a ratio of 1:1. For ordinary investors, as long as they know that it is supported by asset reserves and the price is relatively stable, as a novice, how to buy USDT safely? The following will explain in detail the definition of the stable currency USDT and the practical guide for safe purchase.

If you want to enter the currency circle, the first thing you need to know is definitely not Bitcoin, but USDT. Simply put, it is the “dollar” of the digital world. Whether you want to buy Bitcoin, Ethereum, or any other token, you usually need to convert your fiat currency into USDT first. It is your “ticket” into the crypto world.

1. What is the stable currency USDT (Tether)?

USDT (Tether), issued by Tether, is a stable currency whose value is pegged to the U.S. dollar at a ratio of 1:1.

1. Core Definition

The full name of USDT is Tether, and its Chinese name is Tether. It is a centralized legal currency-backed stablecoin issued by Tether Limited (TEDA Company) in 2014. The core goal is 1 USDT ≈ 1 US dollar, providing a stable price trading medium and value storage tool for the encryption market.

2. Operating mechanism

USDT uses an asset mortgage model to maintain price stability:

3. Mainstream on-chain version (network type)

USDT can be issued on multiple blockchains, and different versions are incompatible with each other. The network must be strictly matched when transferring:

Network type characteristics, handling fees suitable for scenarios

TRC-20 (Tron)

Fast, supports smart contracts

Extremely low (almost free)

Small value transfers, daily transactions

ERC-20 (Ethereum)

Rich ecology and high security

Medium to high (fluctuates with gas fee)

Decentralized Finance (DeFi), NFT trading

BEP-20 (Binance Smart Chain)

Fast speed, low fees

Binance Ecosystem, Decentralized Applications

Omni (Bitcoin)

The earliest version with the highest security

Large transfers and long-term storage

4. The core value and risks of USDT

core value

Main risks

2. How to buy USDT safely? (Nanny-level practical tutorial) 1. Preparation and screening settings before purchasing

We take the OKX exchange as an example to demonstrate how to buy the first USDT safely.

New users who have not yet registered to download the Ouyi APP may wish to refer to the following tutorial:

How to download the Ouyi Apple version APP? Ouyi iOS latest version APP download tutorial

2025 new OKX exchange account registration + KYC identity authentication complete graphic tutorial

How to improve the security of OKX account? Illustration of Ouyi App security settings operation steps

Open the homepage of Ouyi APP (official registration and official download) and click "C2C Buy Coins".

Key settings:

Click the filter (funnel icon) in the upper right corner and turn on "Only display without verification form". This step can save you the tedious merchant secondary verification process. At the same time, enable "novice-friendly orders" to ensure a smoother trading experience.

2. Screen the amount and payment method

In the filter menu, continue to set your trading requirements:

Amount:

Enter the amount you want to purchase (for example, 1,000 RMB).

Payment method: Choose the channel that is convenient for you (such as Alipay, WeChat or bank card).

After clicking Confirm, the system will automatically filter out all merchants that meet your conditions.

3. Core skills – how to choose reliable merchants?

This is the most important step! Don’t just look at price, safety comes first. Please follow the following criteria when selecting a merchant:

Look at the order rate and trading volume: the higher, the better.

Check the registration time (key): Click on the merchant’s homepage to check its registration time. It is recommended to choose an old merchant who has been registered for more than half a year.

Reason: The longer it survives, the safer its source of funds is and the lower the risk of account risk control.

4. Order placing and payment process

After selecting the merchant, click "Buy":

Place an order: Enter the purchase amount and click "Purchase with 0 Fee".

Check the requirements: Enter the order details page, click the "Chat" window first, and read the seller's requirements carefully (usually requiring real-name payment, no notes when transferring, late arrival not accepted, etc.).

transfer:

Click "Get Payment Details" and copy the seller's Alipay/bank card number. Remember: You need to leave the exchange APP at this time and go to Alipay/bank APP to transfer funds.

Confirmation: After the transfer is successful, you must immediately return to the exchange APP and click "I have paid" to notify the seller. The seller will release the coins after verifying the payment and the transaction is completed.

5. Money-saving benefits (cash back on handling fees)

Finally, if you have not registered an exchange account, or your current account does not have a handling fee discount, it is recommended to use the official link of OKX to register and get a 20% cashback. After long-term trading, this handling fee is also a considerable expense. It is recommended that everyone take advantage of the novice benefits.

3. Top 10 pitfall avoidance guides for purchasing USDT safely (must read)

1. Refuse private transactions: only trade in the OTC area of ​​the regular platform, and the platform's custody funds can prevent "payment without delivery".

2. Insist on real-name payment: use your own bank card/Alipay/WeChat transfer. It is prohibited to use third-party accounts to avoid fund freezing.

3. Be wary of abnormal prices: USDT price should be in the range of 6.9-7.3 yuan (fluctuating with the exchange rate). Merchants that deviate too much may be scams.

4. Do not click on external links: only communicate through the platform’s built-in chat system, and reject any external links and QR codes sent by merchants.

5. Keep transaction vouchers: Save transfer screenshots, order details, and chat records for at least 3 months for subsequent verification.

6. Avoid large high-frequency transactions: Newbies are advised to make a single purchase no more than 5,000 yuan to avoid triggering bank risk control.

7. Prevent "Black U": Give priority to the platform's "Quick Zone" or "Certified Merchants". The USDT sources of these merchants are safer.

8. Do not participate in buying on behalf of others: Any activity of "buying USDT on behalf of others and getting commission back" is a scam and may lead to loss of funds.

9. Transfer assets in a timely manner: It is not recommended to store large amounts of USDT in exchanges for a long time. It is safer to withdraw money to a personal wallet.

What is USDT? The Chinese name of USDT is Tether. It is a virtual currency that links cryptocurrency to the legal currency US dollar, and serves as a stable currency.

USDT, the full name of Tether, is a cryptocurrency pegged to the US dollar, also known as a stable currency. Since its launch in 2014, USDT aims to provide a relatively stable trading medium and value storage tool for the digital currency market.

What does usdt mean?

Tether (USDT) is a token TetherUSD (hereinafter referred to as USDT) launched by Tether based on the stable value currency US dollar (USD). 1USDT=1 US dollar. Users can use USDT and USD for 1:1 exchange at any time. Tether strictly adheres to the 1:1 reserve guarantee, that is, for every USDT token issued, its bank account will have 1 US dollar of funds guaranteed. Users can conduct fund inquiries on the Tether platform to ensure transparency. However, this mode of operation of USDT has also caused some controversy. Some skeptics have expressed doubts about whether Tether has sufficient U.S. dollar reserves, and some have raised questions about the transparency of its audits.

Tether is a virtual currency that pegs the cryptocurrency to the U.S. dollar, the fiat currency. Each Tether is symbolically tied to a government-backed fiat currency. Tether is a virtual currency held in a foreign exchange reserve account and backed by legal currency. This method can effectively prevent large price fluctuations in cryptocurrency. Basically, one Tether is worth 1 US dollar.

The main role of USDT

USDT plays an important role in the cryptocurrency market, mainly in the following aspects:

1. Provide stability. Since USDT is pegged to the US dollar, its price is relatively stable. When cryptocurrency prices fluctuate violently, holding USDT can play a hedging role and help investors reduce risks.

2. Convenient trading medium As a stable currency, USDT can be easily used to purchase other cryptocurrencies without going through the cumbersome process of legal currency exchange. The transaction speed of USDT is faster and the handling fee is relatively low.

3. Increase market liquidity. As one of the most widely used stablecoins currently, USDT provides important liquidity support for the cryptocurrency market. Many exchanges support USDT trading pairs, and users can easily use USDT for currency transactions.

Detailed explanation of the role of USDT 1. Acting as a bridge and medium

The main role of USDT is to act as a bridge and intermediary in the cryptocurrency market, allowing users to convert and trade between cryptocurrencies or between cryptocurrencies and legal tender more conveniently, faster, and at lower cost.

For example, if a user wants to buy Bitcoin (BTC) with Chinese Yuan (CNY), he may need to go through the following steps:

This process can take a lot of time and fees, and also involves policy and regulatory risks.

If using USDT, users can simplify this process:

This process saves time and fees, and avoids the risks of using fiat currency directly.

In addition to being a conversion and trading tool, USDT also has the following functions:

2. Keep the value of virtual currency unchanged 1. Avoid the risk of overall decline

In currency-to-crypto transactions, there are three common situations, taking LTC/BTC transactions as an example:

After buying LTC with BTC, both BTC and LTC will rise, and you will enjoy two benefits;

After buying LTC with BTC, BTC and LTC will rise and fall one by one. Your income depends on the rise and fall of the two currencies, which one is greater. As long as the increase of any one is greater than the decrease of the other, you will make a profit. Anyway, it’s a loss. If the rise and fall are equal, there will be no profit or loss;

After buying LTC with BTC, in extreme market conditions, both currencies are falling, and you need to bear two losses. This is often the worst part.

But with USDT, when the currency price drops, you can immediately exchange the currency for USDT, thus ensuring that your assets do not shrink.

2. Reverse operation of digital currency withdrawal

Recharging is simple. The USDT company said investors can wire USD to Tether's bank account via SWIFT, or exchange for USDT through the Bitfinex exchange.

If you have made a lot of profits and want to withdraw cash, you can first exchange your coins for USDT, and then exchange them for US dollars through Tether or other platforms. Here you can find that if you complete the USDT company's certification, you can directly trade on other currency trading platforms that do not require certification, and there is no need to re-certify other platforms.

However, the withdrawal process is not that easy. You can return the USDT in your hand to Tether through Tether. The Tether company destroys the USDT received and issues equivalent US dollars to users. It should be reminded that whether you are buying USDT by wire transfer of US dollars to the bank account provided by Tether, or exchanging USDT back to US dollars, you need to complete account verification. It is understood that Tether's KYC is relatively difficult to pass, and the exchange fee is about 5%.

In addition, USDT can be exchanged for US dollars through trading platforms such as kraken. On the Kraken platform, select the USDT/USD trading pair to convert USDT to US dollars.

Why is USDT so controversial?

Although USDT has many advantages and functions, it also faces a lot of doubts and controversies. Mainly include the following aspects:

In summary, USDT is a cryptocurrency pegged to the U.S. dollar that plays an important role in the cryptocurrency market, providing convenience and value to users. However, USDT also has controversies and risks in terms of reserves, manipulation, and supervision, which require users to use and evaluate it carefully.

Risks faced by USDT

Although USDT has its advantages, there are also some risks worth paying attention to:

1. Issues of trust and transparency The stability of USDT relies heavily on the credibility of Tether and the adequacy of its US dollar reserves. However, the company has been criticized for its transparency and auditing practices, which has led to distrust among some users.

2. Regulatory risks At present, the regulatory policies of various countries on stable currencies are still unclear. If USDT is found to be in violation, it may face regulatory sanctions or use restrictions, which will have an impact on its circulation and use.

3. Market risk Although USDT is anchored to the US dollar, it still operates in the cryptocurrency environment. If the entire cryptocurrency market experiences significant fluctuations or declines, USDT may not be able to completely avoid losses.

in conclusion

USDT is an important stable currency in the cryptocurrency market, providing a trading medium and value scale for the market. It reduces the volatility risk of cryptocurrencies to a certain extent by being pegged to the U.S. dollar.

But at the same time, USDT is also facing problems such as trust crisis, regulatory uncertainty and market risk. In the future, whether USDT can further improve transparency and improve compliance will affect its development prospects to a certain extent.

Regardless, stablecoins still play an indispensable role in the current cryptocurrency market landscape. As a representative of this type of token, USDT’s development deserves continued attention.

If a worker wants to do his job well, he must first sharpen his tools.

From idea to product, there are several twists and turns in between. The determination of product positioning determines the life and death of the product. The determination of product functional requirements determines the development cycle and the cost of trial and error. The Internet is all about speed, so it is necessary to make an MVP (minimum viable product). Of course, before that, you can also demonstrate the product through high-fidelity prototypes.

Let’s sort out some working methods and tools from product conception to project execution and product prototype delivery stages:

1. Idea

First, draw a user flow chart based on the product form, such as the registration and login process, and the shopping process of shopping APP users, which will help you think about the pages and functions involved in the product. Next, you need to classify and summarize the functions of the APP, and use a mind map to sort out the structural framework of the product, which will serve as a reference for designing the APP interface.

In the conception stage, it is OK to draw a sketch with a pencil. Once it is finalized, it needs to be organized into the PRD document.

Sample flowchart

Flowchart software recommends VISIO and OmniGraffle, simple flowchart Powerpoint is also acceptable.

Example mind map

Mind mapping software recommended Xmind and MindNode

2. Inspiration

A good design inspiration must come from the accumulation of daily materials. After you have seen N apps, N kinds of design solutions, and become familiar with the design patterns, and see a need, you will already have an idea of ​​what the app will look like.

Recommended inspiration websites: Behance, Dribble

dribbble

Material organizing tools: Pixave, Ember, Inboard… Quickly build your material library by labeling and classifying pictures, and it is easy to search.

You may ask, "With a professional UI/UX designer, does a product need to be so in-depth about design?" On the one hand, I really love design, and I will devote all my energy to research; on the other hand, my point of view is that UI design is based on your prototype for interface design, which will be subject to certain limitations. If you are a more advanced designer, you will add your own experience and thinking to the design. The junior UI may be designed directly based on your prototype. You have more say in UI design such as color matching and icon drawing, but your product structure and layout affect the design ideas from the beginning.

3. Sketch

paper and pen

Paper and pen are the best tools, bar none, that can quickly draw the interface in your mind.

It is recommended to use dotted scratch paper with a mobile phone frame to facilitate controlling the size of elements according to their actual physical dimensions.

prototype paper

If you are a Virgo who pursues details, or a Libra who pursues perfection, you can try this ruler.

prototype ruler

A printable template is provided, courtesy of Marvel App: Download here

4. Design

At this stage, hand-drawn design drafts can be made into prototypes. The high-fidelity model can define a UI interaction design draft that includes colors and interface elements, or it can be defined as a relatively high-fidelity grayscale, colorless design that includes interaction logic. I think that for products, it is the latter. The product focuses more on the interaction between the interface and people and the logic between interfaces.

High fidelity can reduce communication costs, and the display of product logic, processes, layout, and operating status can quickly be understood by team members.

There are many tools for prototyping, such as Axure RP for Web, Justmind for mobile design, and online Ink Knife, etc.

Sketch is highly recommended here, a professional mobile APP interface design software, and the product can also be used for prototypes.

Sketch

Sketch is a vector drawing app for all designers. Vector drawing is currently the best way to design web pages, icons and interfaces. But in addition to vector editing capabilities, we also added some basic bitmap tools, such as blur and color correction. We try our best to make Sketch easy to understand and use. Experienced designers can use their design skills in Sketch in a few hours. For most digital product designs, Sketch can replace Adobe Photoshop, Illustrator and Fireworks. ——Excerpted from "sketch User Manual"

Sketch provides native controls for iOS and Android systems, which can be used directly.

ios UI Template

Material Design Template

As a product, you don’t need to do any complicated and cool designs. You can get started with this tool in about an hour.

Study materials:

Sketch Chinese Manual Medium Sketch Collection Design + Code

Material website:

sketch app sourcessketch repoUI8 (paid) 5. Demo

Whether it is to customers, bosses, or team members, demonstrating interactive effects is an essential part.

Demonstrations of hand-drawn sketches and low-fidelity models can be demonstrated through the POP APP, taking photos and then creating connections between pages.

POP

In addition, high-fidelity models for Sketch output. Demonstrations can be done through interactive tools.

Silverflows is a tool for prototyping directly in Sketch. However, the front-end time was acquired by invision. It is planned to be integrated into the Craft2.0 version produced by invision labs. It is still very worth looking forward to. BTW, Craft is a very powerful plug-in in Sketch.

Recommended: Flinto, Principle and Marvel. All three tools can directly import Sketch design drafts, and then design click jumps and transition animations between pages. It is worth mentioning that Principle supports timelines, and you can create parallax scrolling effects.

Marvel

Remember not to spend too much time on cool effects, which may slow down the progress of the project. Just be able to achieve basic demonstration effects.

Tips: You can connect your phone to your mac and use Quicktime to record the screen and project the phone screen onto the projector for demonstration.

6. Collaboration

If you need to show the prototype to team members for real-time discussion, you can mark it in real time, which can save communication costs and improve efficiency.

We recommend several real-time collaborative marking tools such as invision, zeplin, and the domestic Bearyboard.

invision

Prototyping is only a small part of the product manager's work. The product manager's focus should be on user research, demand analysis, and product planning.

Remember the early days of your school days, when having a 64-count box of Crayola crayons was the ultimate in creative freedom?

Okay, so as a designer in the digital age, you certainly don’t have to work with paints, inks, or other pigments, although we can learn color from a fine art approach. In fact, the human eye can see millions of different colors – but sometimes, choosing, or even just 2 or three, to use from these millions can seem like a daunting task.

This is because choosing colors for design is very subjective and, sometimes, highly scientific. So, where are the designers who just want a color palette that looks good or makes the client happy? Like it or not, the most effective color choices are more than personal preference, as color has an extraordinary ability to influence mood, emotion, and perception; take on cultural and personal meaning; and attract attention, whether consciously or subconsciously.

For designers and marketers, the challenge is balancing these complex roles that color plays to create an attractive, effective design. This is where a basic understanding of color theory can come in handy. Traditional color theory can help you understand which colors work well together (or not) and what effects different combinations will have in a design.

It all starts with the color wheel.

Basics: Understanding Color

color wheel

You may have seen it in a school art class, or at least be familiar with it in its stripped-down form: the primary colors of red, yellow, and blue. We will deal with the 12 traditional colors often used by painters and other artists. This is a simple visual way to understand color relationships.

The color wheel is all about mixing colors. Mixing the primary colors, red, yellow and blue, you get the secondary colors of the color wheel: orange, green and violet. Combine those with a primary color and you get the third level of the color wheel, the tertiary color. These include red-orange, yellow-orange, chartreuse, blue-green, bluish-violet, and red-violet. The primary and secondary colors (with the additional blue) are part of the visible light spectrum, or the "colors of the rainbow," which many of you remember by the abbreviation "Roy. G BIV." As a child, remember these colors: red, orange, yellow, green, blue, indigo, and violet.

This way of understanding color is called a subtractive color model, which involves mixing color pigments in paints or inks – both traditional colors and printing equipment used fall within this category of the CMYK color system. This is opposed to the additive model, which involves mixing colored light (like the colors you see on your computer screen or TV) using a set of different primary colors: red, green, and blue, often abbreviated RGB.

In the survey we have our own version of the colors that you can choose. Any color you choose will be determined by a hexadecimal value (or hex code), a six-digit number and/or letter combination (usually preceded by #) used in many design schemes to determine specific colors when designing web pages.

color words

Before we get into how to use the color wheel to create a color palette for your designs, let’s look at some color-related terms that will help you understand the different types of colors you might use in your work on design projects:

Hue: A synonym for "color" or a specific color, traditionally referring to one of the 12 colors on the color wheel

Color: black color

Color: Dull gray

Color: bright white color

Saturation: refers to the intensity or purity of a color (closer to a hue, closer to gray, more saturated)

Value: refers to the lightness or darkness of a color

color harmony

Now that we've got the more technical stuff out of the way, let's look at how the color wheel can be a practical resource for choosing colors for design projects. We can think of some classic palettes as color wheels that painters have used for centuries to create balanced and visually pleasing (or high contrast and stunning) compositions. In most design applications, these color schemes need to be broken down into one dominant color, either because of how much it appears in the design, or because of how it compares to other colors – and one or more accent colors.

1) Monochrome: A variety of colors, tints, or tints of one color; for example, blues range from light to dark; this scheme is more subtle and conservative

2) Similar: Having a color on the color wheel, this type of scheme is versatile and easy to apply to design projects

3) Complementary: colors that are in opposite directions, like red/green or blue/orange; complementary colors are high contrast and high intensity, but can be difficult to apply in a balanced, harmonious way (especially in their purest form, when they can easily clash in a design)

4) Split Complementary: Two more flankers on the color wheel complement any color; this scheme still provides strong visual contrast, but is more harmonious than complementary color combinations

5) Three: Three, evenly spaced colors on the color wheel

6) Quad/Double Complementary: Two pairs of complementary colors; this scheme is very eye-catching, but may be more difficult to apply to a pair of complementary colors because the colors are more difficult to balance. If you use this type of plan, you'll want to choose one of four colors that are dominant and adjust the saturation/value/etc of some or all of the colors so they work well in different parts of the design, such as text and background.

color inspiration

In addition to the color combinations found in color combinations, nature offers endless inspiration for harmonious color schemes. For 25 great color palettes pulled from nature photography (and others inspired by travel, food and drink, and everyday items), check out another of our design school articles, “100 Gorgeous Color Combinations: How to Apply Them to Your Designs.”

Colors can also be paired with temperature (warm or cool colors), saturation (bright colors often look younger, while washed out looks), mood (bright and fun, dark and serious), theme (location, season, holiday), and other qualities. To explore different color schemes, check out one of the many color selection tools available online, some will even let you upload an image to generate a color scheme. Some attempts include paletton, Adobe CC (formerly known as Kuler Color), and colorexplorer. If you use a browser, you can download the Eyedropper extension, which allows you to identify and pull colors directly from the web.

The bright, cheerful color palette is inspired by exotic travel locations.

Finding color inspiration from different historical periods and art movements can be another great technique. The palette below shows the warm, light-filled colors common to Impressionist paintings; the vivid, unexpected combinations used by Post-Impressionist painters; the soft, earthy colors characteristic of Art Nouveau; and the bright, bold colors of Pop Art.

Left to right: “Wheatstacks (Late Summer)” by Claude Monet; “Starry Night” by Van Gogh; “Revelation” by Alphonse Mucha; “Marilyn” by Andy Warhol

color psychology

The colors around us. Whether we realize it or not, it plays an important role in our daily lives. That orange or yellow traffic sign you see on the road? This gets your attention. Do you buy a box of cereal at the market, even if it is a little more expensive than others? You may have been drawn to the color of its packaging. Color even creeps into language in creepy ways… Why do we say people "see red" when they're angry or "blue" when they're sad? Because color has a unique connection to our moods and emotions.

But not everyone thinks or experiences color in the same direction. The meanings and symbolism of the cultural and social groups we identify with and the different colors we associate with them are greatly affected. Let’s take a look at the basic colors in Western culture:

color symbolism

Red: This color can convey many different ideas depending on the context. Because red is associated with fire, it can represent warmth or danger. Since red is also the color of blood, it is considered an energy, lively color and is also associated with heart problems and sometimes violence.

Alternative meanings: In some Eastern cultures, red symbolizes good luck and prosperity and is the color worn by brides on their wedding day. Across the world, red has been associated with various political movements and symbolizes revolution.

In terms of branding: Red often conveys power, confidence, and power, and is a very visible color.

dribbble/studiojq

•Orange: Also a fiery color, orange hues, combined with communicative activities, can bring joy to yellow, warmth to red, and optimism. It is also associated with the harvest or autumn festival.

Dribbble/Mike Jones

Alternate meanings: In India, saffron, a certain shade of yellow-orange, is considered sacred. In Japan, orange is the color that symbolizes love.

Brand: Orange often represents youth and creativity. Gold, which is an orange or yellow color depending on its hue, is a symbol of luxury or high quality.

Dribbble/Bendidier

•Yellow: The color of sunlight, yellow often conveys happiness, joy, friendship, and the freshness of spring. It can also issue warnings or warnings in certain circumstances. Some variations (especially saturated yellows and greens) can look sick or unpleasant; historically, yellow was sometimes associated with disease quarantine.

Behance / ronggo wanggori

Alternative meanings: In some Eastern and Asian cultures, yellow is associated with royalty or high status. In parts of Africa and Latin America, yellow is the traditional color of mourning.

On branding: Solid/bright yellow work attracts attention but can be visually disturbing and even difficult to see (e.g. a bright yellow background or vice versa) if not used with care.

Green: This is the color of nature, plant life, growth. As such, it often conveys healthy, fresh, or "all natural" qualities. Dark green can represent wealth (or anything money related) and stability.

Alternative meanings: In the culture that practices Islam, green is a sacred color. Green is also associated with Ireland and, by extension, St. Patrick's Day and the lucky four-leaf clover.

Brands or products that want to be "green" (in the sense of natural, healthy, sustainable, eco-friendly, organic, etc.) often use nature-inspired colors such as green and brown.

Dribbble/Anna Hurley

Blue: The color of the sea and sky, blue often conveys peaceful, clean qualities. And more energetic, warmer and cooler, blue is seen as calming. In some cases, it can represent sadness or depression.

Dribbble/DI

Alternative meanings: In Middle Eastern cultures, blue has traditionally represented protection from evil. Because of its association with heaven, blue symbolizes immortality and/or spirituality in many cultures.

In Branding: Blue is one of the most widely used and versatile colors. Generally used to communicate integrity, security and stability. Dark or deep blue is an especially popular choice because of its corporate background and because it is believed to have serious, conservative, professional qualities.

Dribbble/Alibaba

Purple/Purple: Purple is often associated with royalty, majesty, or honor. It can also have spiritual, mystical or religious connotations.

Alternative meanings: In many cultures around the world, purple represents nobility or wealth; however, in Thailand and southern America, the color is associated with mourning.

Brand: Darker shades of purple also often symbolize luxury and affluence, while lighter/brighter shades can come across as feminine or childish.

BehanceHanoi/Nicholas

Black: Red, black has many (and sometimes opposing) meanings. It can represent power, luxury, sophistication, and exclusivity. On the other hand, it can symbolize death, evil, or mystery. In dress, black people generally wear either ceremonial ("black tie" for parties) or sad and sorrowful (as traditionally worn for funerals).

Alternative meanings: In some Asian and Latin American cultures, black is considered a masculine color. In Egypt, black represents rebirth. In many cultures, colors have magical powers, superstition, or bad luck, again, this is still unknown.

In terms of branding: black is so widely used that it’s almost a neutral, but it can still communicate more than its meaning depending on the context. Many designs are in black and white, either as a deliberate choice or simply to save money on color printing. Colors always look brighter and more strongly against black.

Dribbble/澾gjokaj

White: Due to the color of light and snow, white often represents purity, innocence, kindness, or perfection (and is traditionally worn by brides), but it can also be exactly as stark or sterile.

Alternative meaning: In China, white is the color of mourning. It represents peace in many cultures – a white flag is a universal symbol of truce or surrender.

In branding: White often conveys simplicity or clean, modern qualities. Designers seeking a minimalist aesthetic will often use lots of white.

color in design

Add a color scheme to your design rather than choosing two or three more shades to smash down in equal parts throughout your layout. Effectively applying color to a design project has a lot to do with balance and the colors you use, the more complicated it is to achieve balance.

An easy way to think about this concept is by splitting your color choices into dominant and accent colors. In your design, the dominant color will be the most obvious and most frequently used color, while one or more accent colors will complement and balance the main color. Paying attention to how the colors interact with each other in terms of contrast (or lack thereof), the readability of the text when it is referenced, how certain colors make others look when they are next to them, what kind of mood color combinations create, etc. – will help you fine-tune a perfect color palette for your design purposes.

Using a basic common rule of thumb in designing with three colors is called the 60-30-10 rule. This method is typically used in interior design, but can also be effectively applied to web or print design projects. You'll only make your dominant hue 60% of the color in the design, while bicolor colors use the remaining 30% and 10%. A good analogy to understand this piece is to depict a man's suit: the blazer and pants account for 60% of the outfit color; the shirt and tie account for 30%; provide a small pop of color at 10% – creating a balanced, polished look.

Another way to keep your palette simple and balanced is to use tints and tints (or dark versions of your chosen shades). This way, you can expand your color options without overwhelming your design with a rainbow of colors.

Dribbble/Seán Halpin

Color in marketing and branding

Brand identity is closely linked to color. Just think of Coca-Cola, Facebook, or Starbucks, and I bet you can immediately name the colors that those brands associate with.

A study by the University of Winnipeg, titled "The Impact of Color on Marketing," found that people's initial judgments about products are based on color (about 60 to 90% of evaluations – in just 90 seconds – are based on color). This means that in design, color is not only an artistic choice, but also an important business decision – influencing everything from consumer perceptions of a brand to product sales.

However, when choosing a color scheme for your logo or brand, you don't have to stick to any traditional symbols, or conventional methods. There are no foolproof processes or hard and fast rules when it comes to color. Most importantly, the color used in the design is a good fit for the brand's personality and market environment. For some inspiration, visit a website, brandcolors, that has compiled a visual guide (hex code) from well-known brand color choices from around the world.

RGB and CMYK color systems

When you are working on a design that will be printed, your computer monitor will not be able to display the colors accurately as they will be seen on paper. "What you see is not what you get," because digital monitors/screens and printers use two different color systems: RGB and CMYK. RGB refers to the small dots of red, green, and blue light that form visible colors on the screen; while CMYK represents the color printing created by mixing cyan, magenta, yellow, and black inks on printing equipment. Since the RGB color space uses other colors than CMYK, it is worth noting that some designers prefer to initially create print projects in RGB for more color options and then transfer the design into the finished product before printing in CMYK.

Because of these differences, designers need a way to get consistent color results when working with both systems – for example, if you're designing a logo for your website but also want to get a business card printed. This is where the Pantone Color Matching System (or systems) can help. Colors can be matched to web and print (as well as different types of printing surfaces) to ensure a unified look. The Pantone system makes it easy for designers, clients, and printers to collaborate to ensure the final product looks as intended.

Color: understand it, explore it and love it!

Tether's main goal is to maintain a price of $1, but there have been several significant price fluctuations in history.

For example: In 2017, due to the Taiwan Bank incident, the price fell to $0.91. In 2018, it fell to $0.9 due to the US government investigation.

But it is worth noting that after these events, the price of Tether is usually able to return to levels close to $1 within a short period of time.

Fourth, factors affecting market confidence

Tether’s stability largely depends on the market’s confidence in it. For example, government regulation may affect this confidence. Once market participants become uneasy about the reserves behind Tether or how it operates, prices can be subject to volatility.

Although Tether has been in existence for nearly 10 years, many price changes have always returned to the value of 1 US dollar "within 2-3 weeks".

However, investors still need to pay attention to relevant risks and market changes and should not take it lightly.

The principle of Tether (USDT)

It is stated in the white paper on the official website: Each Tether coin is worth equal to 1 US dollar and is 100% backed by Tether reserves. That’s why we call it a “stablecoin.” But how does it work behind the scenes?

First, when you use 1 USD to buy Tether, Tether Limited will deposit the 1 USD into a specific bank account as a reserve. In contrast, when you exchange Tether for U.S. dollars, the company will withdraw the equivalent amount of U.S. dollars from its reserves and destroy the USDT. This ensures that the total amount of USDT issued is always consistent with the total amount of USD reserves.

In short, the company Tether Limited acts like a middleman, providing us with a "USD play currency" that can be used in the cryptocurrency world. This model is very popular among cryptocurrency exchanges, especially when market prices fluctuate violently, Tether provides a relatively stable value anchor.

However, there are still some doubts and doubts. Although Tether Limited has always emphasized that each Tether coin is backed by US$1, there are still doubts in the market about the authenticity and adequacy of its reserves. One of the key questions at the heart of this is: If everyone wants to convert USDT to USD, does the company really have enough cash to support it?

This incident also reminds us of an important concept: currency is valuable because people generally trust it. Now, the market recognizes the value of Tether, but if trust is damaged, the value of Tether will also be seriously affected.

Tether uses advanced blockchain technology, which not only provides transaction transparency, but also ensures security. In addition, with the advancement of technology, Tether has been implemented on different blockchain platforms, such as: Ethereum and TRON, which means that there are multiple versions of USDT.

What will happen if there are "multiple versions" of USDT? Tether (USDT) has multiple versions on different blockchain platforms, just like a popular game has its own versions on different gaming platforms. So what does the existence of these multiple versions mean to us?

First, the convenience of transactions. First of all, multiple versions of USDT mean that it can be circulated on different blockchain networks. For example: when a person uses an exchange based on Ethereum, he will use the USDT version based on Ethereum, and on an exchange on the TRON network, he will use the USDT version based on TRON. This increases the convenience of transactions and allows users to easily switch between different platforms.

Second, enhanced liquidity because USDT can operate on multiple blockchains, which enhances its market liquidity. No matter which platform you are on, you can find USDT, which makes it a cross-platform "universal game currency".

Third, we should pay attention to the exchange issues. However, this also brings some minor troubles. Different versions of USDT are not directly compatible with each other. If you have Ethereum-based USDT but want to use it on the TRON network, you may need to exchange it through a specific bridge service or exchange.

Fourth, multiple guarantees of security. Each blockchain platform has its unique security features. Multi-version USDT means that the security behind it is multiple and not entirely dependent on a single blockchain platform. This provides an additional layer of security to some extent.

What are the risks of Tether (USDT)?

As one of the most popular stablecoins, Tether has a wide range of applications in the market, but there are many risks and questions behind it.

Risk 1. Opacity of financial data

In 2021, Tether reached an agreement with the New York Prosecutor's Office and promised to disclose its guarantee information. However, judging from the data it provides, its reserve information has not been formally audited and confirmed, and detailed information is relatively lacking.

Real cash accounts for less than 4% of published margins, while the majority of reserves (about 65%) are classified as commercial paper. However, specific details of the commercial paper were not disclosed due to "commercial reasons." This is the first risk of Tether.

Risk 2. Doubts arising from reserves

According to data disclosed by Deltec Bank, in the first nine months of 2020, Tether's foreign currency increased by US$600 million, but its Tether issuance increased by US$5.4 billion during the same period, a gap of nearly 7 times.

Tether's other reserves, such as mortgage loans and investments in Bitcoin, are mostly assets that cannot be cashed out quickly. This means that once there is a large demand for Tether exchanges, Tether may face payment difficulties, leading to a price drop or even a collapse. This is the second risk of Tether.

Risk 3. Legal and regulatory issues

Unlike other financial institutions, Tether's custodian bank Deltec does not purchase insurance specifically designed to protect investors, such as the FDIC or the Central Deposit Insurance Corporation. In other words, if Tether is subject to large-scale theft or loss, it will be difficult for investors to receive compensation.

Although Tether claims to have registered an MSB license, it has not actually obtained strict financial supervision, which may mean that there are risks in business operations and investors cannot fully rely on the information currently provided. This is the third risk of Tether.

Although Tether has an important position in the crypto market, the risks and opacity behind it are still areas that investors need to pay special attention to. The above three potential risks should be carefully considered before using Tether.

Is Tether (USDT) worth investing in?

Despite all the controversies Tether has experienced, its current position in the cryptocurrency market seems to remain solid. Many people believe that Tether is a safe and stable investment option, but is this true?

First of all, we cannot deny the huge influence of Tether. Since its launch, it has dominated the market and become the most popular stablecoin today. The daily transaction volume is "billions of dollars" and not even Bitcoin can match it. This widespread usage means that most people believe in its stability and will use it as a bridge for transactions.

However, the financial issues behind it cannot be ignored. Many critics point out that Tether's financial data is not transparent and are skeptical about its true reserve margin content. Although Tether claims to have sufficient reserves, the lack of public information makes it difficult to determine the authenticity.

But on the other hand, Tether’s popularity means it’s unlikely to disappear anytime soon. Many people choose to trust it, not only because it is convenient, but also because "everyone is using it." So despite the risks, many investors still think it's relatively safe to use funds as excess in the short term.

As for long-term investment, since the price fluctuations of USDT itself are very small, it may not be an option that can bring significant returns. If you are looking for high risk and high reward, other options in the cryptocurrency market, such as Bitcoin or Ethereum, will be more attractive.

In addition, although Tether itself is not a scam, it has indeed been exploited by many scammers. From fake exchanges, fraudulent APPs to various scams, criminals often use the name of Tether to commit fraud. Therefore, whether you choose to invest or not, you should remain vigilant, do not be easily tempted by good promises, and be sure to purchase from reliable sources.

How to make money by buying Tether (USDT)?

Many investors use Tether for arbitrage. So, how is arbitrage realized, and how to make money by buying?

Arbitrage is basically divided into "two major strategies": one is to use the "price difference" between multiple platforms, and the other is to obtain "time difference" income by holding for a long time.

First, multi-platform arbitrage requires investors to buy USDT at a low price on platform A and then sell it at a higher price on platform B. However, this strategy is relatively difficult in practice because investors need to have in-depth knowledge of multiple platforms and continuously pay attention to market price dynamics. Therefore, this strategy usually requires professional teamwork and is difficult for ordinary investors to operate.

As for the long-term holding strategy, its risks are closely related to market performance. Traditionally, when the price of Bitcoin falls, people may turn to buying Tether; and when the price of Bitcoin rises, investors may consider selling Tether. But as Tether continues to sell Tether coins, this arbitrage space is shrinking. In addition, in the financial services provided by some cryptocurrency exchanges (such as Binance), depositing Tether will earn annual interest of up to 10%. This is also a very good way to invest.

When it comes to how to buy Tether, investors can generally use "two channels": exchanges and over-the-counter transactions. Exchanges such as Binance, OKX, etc. provide direct purchase functions. OTC transactions include: B2C, C2C, and P2P methods.

What does “over-the-counter” cryptocurrency trading mean? Over-the-counter (OTC) transactions are transactions completed directly between buyers and sellers, bypassing traditional cryptocurrency exchanges. This method is mainly used to conduct a large number of buying and selling operations quickly and efficiently without causing excessive price fluctuations in the open market.

When we trade on a general cryptocurrency exchange, the buy and sell orders will be publicly displayed and will directly affect the market price. But in the case of large transactions, if a large amount of Bitcoin or Ethereum is suddenly sold, it may cause large price shocks in the market.

OTC transactions are designed to avoid this situation, allowing buyers and sellers to directly negotiate the price and conditions of the transaction and then complete the transaction safely and privately. This is especially useful for larger organizations! However, OTC trading also has its risks. Without centralized regulatory guarantees like exchanges, you will face a higher risk of fraud. Therefore, it is crucial to choose a reliable OTC trading partner and ensure the safety of the transaction!

FeaturesB2C

(Business to Customer)C2C

(Customer to Customer)P2P

(Peer to Peer)

describe

Directly from the trading platform to the user

Provide transaction services

Transactions are conducted directly between platform users,

The platform provides matching services

Through a decentralized approach,

Not tied to a specific platform

participants

Trading platform and individual users

between individual users

direct transactions between individuals

advantage

Standardization of transaction process,

User experience is relatively simple and intuitive

Provide more flexibility and choice,

Sometimes you can get a better price

Completely decentralized,

Provide maximum freedom and privacy

shortcoming

More dependent on trading platforms

Reliability and security

Users need to identify themselves

Reliable trading partner with higher risk

Without the protection of intermediaries,

Higher transaction risk and fraud risk

Where to buy Tether (USDT)?

Tether is currently the most popular stablecoin on the market and is widely traded with cryptocurrencies.

The following are the channels through which USDT can be purchased:

Channel 1. Trading through cryptocurrency exchanges

Many major cryptocurrency exchanges support trading of Tether.

Here are some well-known exchanges: Binance, OKX, Huobi, etc.

Through these exchanges, Tether can be purchased using other cryptocurrencies (such as BTC or ETH) or traditional fiat currencies (such as USD, EUR, JPY, etc.).

Channel 2: Through over-the-counter transactions

This is a method of trading outside of public exchanges.

Many large exchanges offer over-the-counter trading services, making it possible to buy Tether in large quantities without having a big impact on the market price.

Channel 3. Through P2P transactions

Some platforms allow users to trade directly with each other without going through an intermediary or exchange at all.

This usually involves the seller sending Tether directly to the buyer's wallet, and the buyer paying the seller via traditional payment methods.

Channel 4. Through cash/local transactions

Although this method is less common, in some areas, people will meet at a certain place and exchange cash for Tether.

Special note: before purchasing Tether, please be sure to confirm whether the channel you are using is reliable and safe. Also, please make sure your Tether is stored in a secure wallet and properly backs up your keys to prevent loss.

Tether (USDT) purchase tutorial

There are many crypto exchanges that support USDT. Next, I will take Binance, the largest exchange in China, as an example to introduce the registration and purchase methods in detail.

Android mobile APP download

Android phone users can directly use the browser to open the APP download address: https://static.jbzj.com/qkl/ba/baxz.html

Apple mobile APP download

Apple mobile phone users can check the tutorial below to register an overseas Apple ID, and then go to the Appstore to search for binance and download it.

Step 1: Create an Apple ID for Taiwan, China

Due to country restrictions on Apple mobile phones, we need to register an apple ID in Taiwan, China, before we can download the Binance software. Apple IDs in the United States and Hong Kong no longer work. Apple IDs in the US can only download the emasculated version of Binance. In Hong Kong, due to regulatory reasons, the apps of these exchanges may also be required to be removed from the Appstore. So our best option is to register an Apple ID in Taiwan, China.

1. Enter the official Apple account website through a browser search, find the small downward arrow in the upper right corner of the page, and click "Create your Apple ID".

2. Fill in our [last name and first name]. Here we change the country or region from [Mainland China] to [Taiwan], and here we can make up any date of birth. The email address must be one that has not registered an Apple ID. Whether you have a domestic Apple ID or a foreign Apple ID, you must have never registered one.

3. Set up our Apple ID password again. At least 8 characters, including uppercase, lowercase and numbers.

4. Enter our mobile phone number. Because it requires verification, we need to receive text messages and voice calls, so we can just fill in whatever phone number we have.

5. Enter the verification code and click [Continue].

6. At this time, we will receive a verification code in our mailbox. We check it in the mailbox, enter the verification code, and click [Next].

7. Enter the mobile phone verification code again, and then click [Next].

8. Now comes a very important step. After we log in to our Apple ID, first click the downward arrow next to log out and find "Personal Information".

9. Find and click [Country or Region], and then click "Change Country or Region".

10. For the next country and region, we still choose Taiwan, China. We must select "None" for payment method and do not add any payment method. Next is the billing address and shipping address. Here we need to use the Taiwan address generator. Let’s not close this page yet, let’s open a new page first.

11. Directly search for "Taiwan Address Generator" and then open it.

12. Go to the Taiwan address generator page. Below is some randomly uploaded fake information. We can fill it in to the personal information page of our apple ID just now. Paste the name, city, street address, building number, unit number, zip code, area code and phone number. The area code is usually 886.

13. We don’t need to fill in the shipping address below again. Just click "Copy Billing Address" below, then click "Update".

14. Now our Taiwan personal information has been entered. You now have a complete account with an Apple ID in Taiwan, China.

Step 2: Download and install the Binance Chinese version APP

1. Next, we open the Appstore, click on the villain avatar in the upper right corner, scroll down and click [Log Out]. Go back again, fill in the apple ID and password we just registered here, and click [Login].

2. After logging in, click [Finish].

3. Search for "Binance" in the search box. The first one is advertising, we can leave it alone. We find Binance below and click to download.

4. Now our Binance APP has been downloaded successfully, click [Open]. Next we can use Binance normally.

Tutorial on Binance account registration and purchasing USDT

1. After downloading, let’s register a Binance account (official registration, official download).

Open the Binance APP, click [Register] on the homepage, click "Create a Binance Account" in the lower left corner, and click [Register via email/mobile phone number]

2. You can directly enter our mobile phone number or email to register an account. You can fill in A0Y8K980 as the referral code here, so that you can get a permanent 20% fee reduction. This will help us save 20% in handling fees for each transaction we make later. It can help us save a lot of money virtually.

3. Complete the KYC identity verification of the account

1. After registering a Binance account and logging in, he will ask us to authenticate our identity. Click [Go to Verification] on the homepage and click [Verify Now]

2. Select [China] as your country of residence, click [Continue], fill in your name, and click [Continue]

3. Select your nationality again, we just select [China], click [Continue], enter your date of birth, and click [Continue]

4. Select [China] as the document issuing country, select [ID card] as the document type, click [Continue], and then he will ask us to upload photos of the front and back of the ID card. Please upload it. Be sure to use real identity information, because face recognition is needed later.

4. Security settings (authenticator APP verification)

After the authentication is completed, everyone needs to perform security settings.

1. Click on the small four-square logo in the upper left corner. Click the small gear icon in the upper right corner, scroll down, and find [Account Security]

2. If you use your email to register, the email will be automatically bound for us. We also need to bind the following authenticator APP, click on it. Click [Enable] again, and he will send a verification code to our email. We can go to the email to check.

3. Then he will give us a 16-digit secret key and a QR code. You can copy this secret key or save the QR code, then open Binance Google Authenticator and use the 16-digit key you just copied. Add new authenticator.

4. We copy this 16-digit key, and then open our Google Authenticator. Everyone downloads this Google Authenticator. Be careful not to download the wrong Google Authenticator. Then click the + sign in the lower right corner and enter the setup key.

5. We can fill in the account here casually, and then paste in the secret key we just copied. Click [Add], and now our Google Authenticator verification code has been generated. It's the six digits below. These six digits are our Google verification code. Copy this Google verification code.

6. Return to Binance, click [Next], paste the Google verification code we copied, and click [Submit]. Now our Binance Authenticator APP has been bound.

7. When we return, we can see that there is a small green check mark behind our authenticator APP, which means that we have successfully bound it. After we set up the security settings, our accounts will be safer.

After the authentication is completed and the security settings are completed, we can buy coins on Binance.

5. Buy USDT, sell USDT

Buy USDT:

1. Click [Add Funds] on the Binance homepage and select [C2C Transaction].

2. For novice users, it will ask us "Have you ever used C2C transactions?", I will skip the novice guidance and select I have experience.

3. After entering, you can see that there are express zones, self-selected zones, strict zones and bulk zones.

4. As the name suggests, the quick area is more convenient and fast. We directly enter the amount of RMB we want to buy, and then we can buy the corresponding amount of USDT. It calculates for me here that I can buy about 140.44 U for 1,000 yuan.

5. The "self-selected area" is a little more complicated, but the self-selected area, the strict area and the bulk area are relatively similar. The difference is that the large area is specifically designed for large-amount transactions, and its limits are generally relatively high.

6. The "strict area" is equivalent to the selling area of ​​the self-selected area. The strict area only has the function of selling, which means that it is specifically designed for withdrawals. We can see that it has written a 100% compensation for us here. Because the merchants in Yan District are all Aegis merchants, they have deposited a large amount of deposits on the platform. If something goes wrong during our transactions with them, this will cause our funds to be frozen, our accounts to be blocked, etc. It will compensate us 100%, so when we withdraw money, it is safest to use this strict area.

7. When depositing money, we can directly use the buying function in this self-selected area, and then screen some more reliable merchants by ourselves. How to filter? First, we can filter the amount we want to buy, for example, I want to buy 1,000 RMB USDT, and then filter our payment method, for example, I want to pay using WeChat, click [Confirm].

8. We check this Aegis, so that we have a relatively high safety factor.

9. Let’s directly look at the following merchants that meet our conditions. The higher the order volume and order rate, the better. Then we click on his homepage to check when he became a merchant. We can see that this merchant's account has been created for more than 1,200 days, and the first transaction is relatively long ago. We need to look for merchants that have been registered for a long time, at least for more than half a year. Because the longer his account survives, it proves that his assets are safer, and he has done so many transactions without any problems. After confirming the transaction with him, we click [Buy] here.

10. After entering the amount we want to purchase, it calculates for us that we can receive 137.55 U, and then click [Place Order].

11. At this time, our order is generated, and the merchant's name, WeChat account, and payment QR code will be displayed to us. At this time, we need to leave the platform and add his friends in WeChat, or use the scan function to transfer money to him. After the transfer is completed, remember to take a screenshot to keep the voucher, then return to the platform and click [Upload Payment Proof].

12. Upload the screenshot we just took here, and then click [I have completed the payment, notify the seller]. In this way, after the seller receives the money, he will release the coins to us. In this way we have completed a deposit process.

13. However, I would like to remind everyone that you must not make any remarks during the transfer process. You must also use your Binance real-name name, WeChat account or Alipay account under your name to transfer money to others. These are the basic requirements for some transactions. Of course, if there are any problems during the payment process, you can also click [Chat] to communicate with the merchant.

14. After buying USDT, we go to [Assets] in the lower right corner and we can see that he has many accounts here.

Tether (USDT) Review

Most people think USDT is usable, but they still need to be aware of the risks.

Dcard netizens’ opinions PTT netizens’ opinions on Tether (USDT) News Compilation

In recent years, Tether has been closely watched by investors, researchers and the media due to the controversy and turmoil behind it.

Here is a summary of these important news:

Sorting out 1. Issues of financial auditing and real reserves

Tether promises to conduct regular audits to ensure that every USDT is backed by one dollar. However, the accounting firm Friedman LLP, which was originally scheduled to perform the audit, chose to discontinue cooperation in 2018 because the financial information provided by Tether was too simple.

Later, although Tether obtained a report from Freeh Sporkin & Sullivan indicating that it had sufficient bank deposit support, detailed financial data has not been made public. In fact, in 2019, Tether even admitted that only 75% of its reserves were backed by U.S. dollars.

Summary 2. Charges from the New York Prosecutor’s Office

The New York Prosecutor's Office revealed that Tether had no real U.S. dollar reserves for a certain period of time.

In addition, in April 2019, the prosecutor's office accused Tether of using its own reserves to fill an $850 million funding gap of its parent company.

By 2021, the two parties reached a settlement, and Tether agreed to pay a fine of US$85 million, but did not formally admit its fault.

Arrangement 3. Concerns about market manipulation

At the end of 2017, the activities related to Tether and Bitcoin prices attracted attention.

The U.S. Commodity Futures Trading Commission issued subpoenas to Tether and Bitfinex, suspecting that Tether may be manipulating the price of Bitcoin by issuing Tether coins. Research from the University of Texas also found that there is a correlation between the additional issuance of Tether and the rise in Bitcoin prices, raising concerns that Tether may be manipulating the market.

Sort out 4. Recent price fluctuations

Tether has recently seen a massive sell-off on several trading platforms, pushing the price slightly below $1.

The chief technology officer of Tether hinted on social media that competitors (such as Binance) may be involved in this fluctuation. At the same time, some analysts also pointed out that Binance may be planning a market attack on Tether, trying to improve the status of its own stable currency through various means.

Tether (USDT) FAQ Question 1. The stable currency UST has plummeted. Is USDT still safe?

The stablecoin TerraUSD (UST) decoupled from the US dollar and its price plummeted, which in turn had a huge impact on the entire cryptocurrency market. This incident has attracted the attention of many investors, and many people have wondered: Is it possible that USDT will follow the same path?

First, we must understand the classification of stablecoins. Stablecoins are divided into three categories: legal currency stablecoins, cryptocurrency stablecoins, and algorithmic stablecoins.

Use a table to let you clearly understand the differences between the three!

Features Fiat Stablecoin Cryptocurrency Support Stablecoin Algorithm Stablecoin

describe

Directly linked to fiat currency, each issued stablecoin is backed by equivalent fiat currency or fiat currency equivalents

Backed by other cryptocurrencies as collateral, the value depends on the collateral cryptocurrency

It does not rely on any actual asset support and uses algorithms and smart contracts to regulate supply to maintain price stability.

Linked assets

Fiat currency (USD, Euro, etc.)

Other cryptocurrencies (Bitcoin,

Ethereum, etc.)

No real asset support

advantage

The price is stable and easy to understand and accept

Decentralization, reducing reliance on traditional financial systems

Fully decentralized and highly flexible

shortcoming

Centralized management is required and there are regulatory and audit risks

High price volatility and may require over-collateralization to maintain value stability

Extremely dependent on algorithm efficiency, facing complexity and predictability issues

Among them, USDT is a "fiat currency stable currency", which means that each USDT is linked to 1 US dollar. Cash reserves are maintained by TEDA Limited in Hong Kong. However, in 2021, the company inadvertently revealed that its physical cash reserves accounted for only 2.94% of total assets. Other major assets include: commercial paper, trust deposits, guaranteed loans and corporate bonds.

In contrast, UST is an "algorithmic stablecoin" whose price is entirely determined by the decentralized algorithm on the Terra protocol, without any form of physical reserves behind it. Stability depends on another token, LUNA, which is a dual-token model. When the price of UST fluctuates, this algorithm will stabilize the price of UST by adjusting the supply and demand of LUNA coins.

But it is this stabilization mechanism that only relies on algorithms that makes UST susceptible to market changes. When the value of UST continues to decline, in order to maintain stability, the price of LUNA begins to fall, and a large number of new LUNA are created, hoping to maintain the value of UST in this way. As a result, the issuance of LUNA coins increased an astonishing 328 times in a short period of time, eventually causing the values ​​of both UST and LUNA to plummet and completely lose their stability.

Although USDT and UST are both stablecoins, their operation methods and the mechanisms behind them are very different. Therefore, the collapse of UST does not directly mean that USDT will have the same risk, but investors still need to remain vigilant about the reserve assets behind it.

Question 2: How to convert USDT into RMB?

The process of converting Tether to RMB includes the following 6 steps:

Special tip: do a small test before trading and withdrawing money to make sure everything works smoothly. In addition, try to choose an exchange with a good reputation and reputation to reduce unnecessary risks.