Tether is coining USDT 2 billion in preparation for a chain swap that involves a lot of FUD

Tether’s holdings and the question of whether the USDT stablecoin is fully backed by US dollars has long been a sensitive issue. More recently, however, the decision to burn and mint billions of USDT has sparked yet another FUD storm.

fish warning elephant

On November 4th, fans of the crypto space buzzed when the Twitter account Whale Alert Disclosure Tether minted 2 billion USDT and burned 1 billion USDT.

The source: Whale alert

To reassure the public, Tether CTO Paolo Ardoino quickly explain that every 1 billion USDT is minted to replenish the “inventory” for the Ethereum and Tron networks.

The source: Whale alert

Meanwhile, according to Whale Alert, USDT 1 billion is being burned on the Tron blockchain.

However, Tether seems to have anticipated the turmoil this move could cause and has already prepared explain. The stablecoin company stressed that the overall supply of USDT will not change.

“Tether worked with a third party to conduct a chain swap (conversion from Tron TRC20 to Ethereum ERC20) for USDT 1 billion. The entire USDT offer remains unchanged. “

Connect with reality

At the time of writing, the amount of tether circulating is USDT 72,744,305,535. If it were fully backed by dollar reserves, that would mean Tether holds about $ 72.7 billion.

But the question of whether USDT is fully backed by dollar reserves has sparked heated debate and mystery. The USDT 1 billion minting is not a new event. For example, on March 10th, Tether minted another billion USDT on the Tron blockchain. Later that month, the stablecoin hit a market cap of $ 40 billion notification officially.

In October, Tether’s market cap exceeded $ 70 billion, surpassing Cardano’s.

Of course, crypto watchers and USDT holders want to know where the billions of dollars are coming from and where the dollar reserves are.

As if that weren’t enough, as reported by Bitcoin Magazine, the largest stablecoin company had to pay a fine of $ 41 million to the Commodity Futures Trading Commission (CFTC) in October. The position of the CFTC is that Tether is making false claims how their USDT tokens are supported.

In a statement, Tether said:

“For Tether Reserves, there is no evidence that USDT tokens are not fully supported, simply not all reserves are in cash and are in a bank account on behalf of Tether. . As the representative of Tether in the order, the company always has sufficient reserves and has never failed to exchange the claim for cash. “

What about Terra?

While some investors are shunning stablecoin companies, Grayscale has an entirely different view. Earlier this month, crypto investment firm Terra (LUNA) added to its list of considered assets.

It’s worth noting that Stablecoin TerraUSD (UST) is also part of the Terra ecosystem. At the time of writing, it ranks 67th by market cap.

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Minh Anh

According to AMBCrypto

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