Tether, the company backing the Stable coin USDT has burned 500 Million tokens.
500 Million tokens were transferred from the Tether treasury to this address, from which the company has issued token several times before.
The transaction and the token burn have received 9 and 7 confirmations respectively at the time of press. The tokens are not only removed from circulation but also destroyed completely.
Image Source: Omniexplorer.info
The stable coin which is supposed to be pegged 1:1 to the US Dollar plunged as low as $0.85 on exchanges like Kraken earlier this month. This led to other stable coins selling at a premium after which many investors are opting out of USDT and moving to other stable coins like TUSD and DAI. Exchanges like Binance, Huobi, and even Coinbase recently have introduced other stable coins on their platforms.
The market cap of Tether has been plunging since the start of this month. It has dropped from an all-time high of $2.8 Billion to $1.99 Billion at the time of writing.
Bitfinex took more than 800 Million USDT out of circulation by transferring it to the Tether treasury. When the tokens are burned the actual dollars have to be redeemed from their treasury. But due to Tether’s reputation for not maintaining transparency, it is not known as to who redeemed the USDT to Dollars.
Tether Tweeted:
Tether has just destroyed 500M USDt from the Tether treasury wallet with the following tx: https://t.co/HTG52LaRVh
For more information see the announcement here: https://t.co/McLTCGzmJi— Tether (@Tether_to) October 24, 2018
Also Read:
Coinbase Launches Stablecoin Backed by Circle on its Platform
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