Tether (USDT) is a cryptocurrency which is backed by fiat (traditional) money. It was originally conceived as a Stablecoin with the promise of maintaining one dollar in reserves for each Tether issued. This would have pegged or tethered the value of this coin to $ 1.00. Yet, the company managing it later stated that it does not guarantee that investors would be able to redeem the Tether coin for 1 dollar.