Tether is Coming to the Tron Network as an TRC-20 Token
By Jamie Green – Crypto Expert
Tether, noticeably the most popular Stablecoin, has announced plans to introduce their USD backed token to the Tron network. This token will function very similarly to USDT issued via Omni and the ERC-20 variant. By bringing this token to another network, traders have more opportunity to buy and sell crypto using USDT.
Tron was initially developed on the Ethereum blockchain which now runs on its own native blockchain. Companies and projects can issue their own tokens on this network which boasts faster speeds.
There has been huge interest into Stablecoins over the past few months which has seen many new additions to the markets. You can now find ten different Stablecoins that are pegged to the US Dollar to buy and sell cryptocurrency. These tokens have mechanics usually in the smart contracts to hold a stable value. These stable coins are preferred by traders as they allow crypto-to-crypto trades benefiting from the technology but do not fluctuate as much in price. It would take too long to transact Fiat directly for a trade.
The price of cryptocurrencies is subject to change due to volatility. To avoid negative price movements, a trader can exchange Bitcoin into a Stablecoin and back out when necessary. Cashing out crypto to fiat could incur delays however due to traditional banking practices and is not efficient enough to avoid price movements.
Tether is reportedly backed 1:1 by reserves of US Dollars. This backing should allow traders and holders to cash out crypto without worry as the money is inside an audited account.
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