Tether destroyed 500 million USDT tokens

USDT Stablecoin Issuer Destroys 500 Million Tokens It Issued.

According to blockchain data, Tether Limited has transferred 500 million USDT from the vault address to another address that was previously used to issue tokens. After that, the recipient address initiated the token cancellation procedure.

On its website, Tether has published a statement regarding this procedure. “Over the past week, Tether has redeemed a significant amount of USDT tokens. Accordingly, Tether will destroy the 500 million USDT held in the Tether storage wallet, leaving other USDT (about 466 million) in the wallet as a preparatory measure for issuing USDT in the future, ”the company writes. “The concept of issuing and withdrawing Tether is described in the white paper Tether. Issue and redemption of tokens are available for public viewing on the OMNI blockchain “.

According to the Tether white paper, USDT holders can redeem their tokens with real US dollars held in the company’s accounts. Tether claims that every USDT token is backed by the US dollar, which skeptics have repeatedly questioned.

A well-known critic of Tether and Bitfinex, tweeted as “Bitfinex&’Ed ”, was not impressed by today’s announcement. “No one can say they have converted USDT to dollars and received a transfer from Tether,” he wrote..

Since the beginning of the month, large USDT holders have been actively transferring tokens to the Tether vault, thus transferring about 800 million USDT in a few weeks. Tether-affiliated Bitfinex wallet alone received USD 680 million over the past week. After that and until today, the issuer’s vault contained about 1 billion USDT.

Events unfold against the backdrop of a significant deviation of the USDT rate from the dollar, which occurred last week, and the spread of alternative stablecoins in the market.

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