Tether Destroys 500 Million USDT. USDT, a USD-pegged cryptocurrency, saw the destruction of 500 Million of its units by its issuer Tether Limited.
The Tether Treasury held the coins previously. During the past couple of weeks, there has been an enormous influx of USDT into the Treasury, especially when the stablecoin lost equality with the US dollar last week, as questions arose about the access of Tether to keep their money services. Usually, the estimation of the coin is stable at almost the same price as the US dollar.
While all of this was happening, close to a billion USDT was being held in the treasury – but wasn’t really out in circulation. Following this ‘destruction’ of 500 Million USDT, Tether now holds 467 Million USDT in its treasury. There have been various speculations about why this happened.
Tether published a statement to confirm that the tokens have been destroyed:
“Over the course of the past week, Tether has redeemed a significant amount of USDT from the circulating supply of tokens. In line with this, Tether will destroy 500m USDT from the Tether treasury wallet and will leave the remaining USDT (approx 466m) in the wallet as a preparatory measure for future USDT issuances.
Tether Destroys 500 Million USDT. The parity of Bitcoins in Bitfinex’s cold wallet has dropped by around 100,000 coins since early September. Speculations arose that Bitfinex is attempting to take Tethers off the market. This may have been to drive the cost back up to equality with the dollar or even to leave the stable coin business altogether, as there are several competitors now.
The coin started to slip more than average on Oct. 14. The company-controlled Treasury wallet received a sum of 680 million USDT by Oct, 23. The majority of the transfers radiated from an address controlled by Bitfinex. A huge digital currency exchange that overlaps with Tether, both in terms of ownership and as well as administration.
One of the most interesting things about this action from the firm is the timing of it all. Earlier in October, Tether’s market cap was facing a strong downtrend. Over the course of the month close to 800 Million, USDT redeemed. Tether’s market cap fell below the $2 Billion marks.