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Tether Eats Up $500 Mill

Tether, the USD pegged stablecoin, revokes coins worth $500 million today.

Around 9 PM today, Tether sent $5 million from its treasury to another wallet. The treasury has the address of 1NTMakcgVwQpMdGxRQnFKyb3G1FAJysSfz. Then, as soon as the transaction was confirmed, the sending wallet revoked the coins effectively isolating them from main stream and destroying them.

Tether Transaction
This is the wallet to which the tokens were sent:

Tether Transaction
The burning of tokens may have been undertaken in response to the accusations of injecting fake liquidity to push up the price of Bitcoin.

Tether’s official blog post had something to say on this strange event:

‘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 measures for future USDT issuances.’

‘Conceptually, the Tether issuance and redemption process is outlined in the Tether whitepaper, with issuances and redemptions visible through observing the Tether treasury balance on the OMNI blockchain. ‘

Tether is all set to balance out its fictional lending that came into question more than once in the past month. The coins that were out of circulation when the recent cash-out happened had to be dealt with.

At the time of writing, Tether is going strong at 98 cents.

Tether Chart
Source: CoinMarketCap

 

Sarim Mehmood

An electrical engineer to be. Sarim is a blockchain & crypto enthusiast and an early investor in ETH and Ethereum based projects. Contact the editor at editor.opinions@blockpublisher.com

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