What is Tether OMNI?

Sep 13, 2022
3 min read

This blog post will cover:

  • What is Tether OMNI?
  • Where did Tether OMNI come from?
  • What are the advantages of Tether OMNI?
  • What are the disadvantages of Tether OMNI?
  • How to buy Tether OMNI on SimpleSwap?

What is Tether OMNI?

Tether is a cryptocurrency asset issued on the Bitcoin blockchain via the Omni Layer Protocol. It can be transferred, stored or spent just like any other cryptocurrency. The main difference is each unit of USDT is backed by a U.S. dollar. Moreover it is a stablecoin. It is created to always worth $1.00.

Where did Tether OMNI come from?

The history of the Tether starts in January 2012. Then J.R. Wallet described the possibility of building new currencies on top of the Bitcoin Protocol. To show that it is possible he created the Mastercoin. The Mastercoin protocol became the technological foundation of the Tether cryptocurrency. The first token was issued on October 6, 2014. At the beginning Tether supported three cryptocurrencies: USTether+ for United States Dollar, EuroTether+ for Euros, and YenTether+ for Japanese Yen. The team claimed that every currency is 100% backed with the real currency.The Maincoin Foundation as later renamed to the Omni Foundation.In 2015 Bitfinex enabled trading of Tether on the platform. But the relationship between Bitfinex and Tether is still unclear. While some representatives assured everyone they are two different things, the Paradise Paper stated that they have the same owner.From 2017 to 2018 the amount of Tether tokens grew from $10 million to about $2.8 billion. This growth is absolutely outstanding. Only during summer of 2018, it rose up to 80% of Bitcoin volume.

What are the advantages of Tether OMNI?

  • USDT in general brings some clarity to cryptoworld
    The value of token is very clear.
  • Since it is backed by U
    S. dollar it can be used as a trading method to smooth out risks.
  • The company promised to control the reserve of coins
  • USDT can be used in the electronic form as well
  • Uses Bitcoin blockchain
    Some may find it an advantage since this blockchain is tested and has been functioning for some time already.
  • Extremely low fees in comparison with other cryptocurrencies
    Although USDT seems to be an easy to understand and to use cryptocurrency, there are some disadvantages you may want to know before using it.

What are the disadvantages of Tether OMNI?

  • Depends on financial institutions
  • To purchase and sell fiat money users need to go through verification and confirmation of account
  • Unclear audits
    The company has released a lot of updates, but they don't say anything about upcoming audits.
  • It is completely centralized
    If you are looking for a decentralized currency, USDT is not the one to choose.

How to buy Tether OMNI on SimpleSwap?

Let’s say you want to buy Tether OMNI. What should you do? We suggest you go to the SimpleSwap homepage and follow the instructions below:

  • Choose the currency you want to exchange (e.g. BTC) in the first drop-down list. Enter the amount you would like to swap.
  • Select USDT in the second drop-down list. You will see the estimated amount that you will receive after the exchange.
  • Enter the Recipient’s Address. Tether OMNI will be sent to this address. Be careful and make sure you use the correct address.
  • Check all the information you have entered. If everything is correct click the Exchange button.
  • You will see the Bitcoin deposit address. You need to transfer the necessary amount of BTC to this address to start the exchange.

This is everything you need to know to buy USDT.

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