Tether Is Transferring Over $1 Billion In USDT From Tron To Ethereum And Avalanche
Tether (USDT) has announced that it is orchestrating a chain swap to transfer USDT assets from Tron’s TRC20 to Ethereum and Avalanche’s blockchain, in response to recent events in the stablecoin space.
Tether announced in a tweet that 1 billion USDT will be transferred from Tron’s blockchain to Ethereum
An additional 20 million USDT will be converted to Avalanche, on the other hand. Tether claims that this will have no effect on the stablecoin’s total supply.
After the recent TerraUSD (UST) and Terra (LUNA) debacles, there were fears of a stablecoin implosion. Apart from that, USDT fluctuated in price, falling below $0.99 cents on several trading platforms on May 12. As a result, many people are concerned that the most widely traded stablecoin is struggling.
Tether CTO Paolo Ardoino informed traders in USDT is not like algorithmic stablecoins like UST. Tether has a “strong, conservative, and liquid portfolio that consists of cash and cash equivalents,” according to Ardoino. Treasury bills, money market funds, and commercial paper are all examples of this.
Ardoino also pointed out that the ongoing FUD surrounding stablecoins is becoming a money-making stream to some traders. He explained that some firms are buying USDT below $1 on some exchanges and are redeeming it for above $1 on Bitfinex and the Tether website.
Do Kwon, the founder of Terra, recently revealed plans to reestablish the UST stablecoin peg. Before re-pegging UST, Kwon indicated that the first step will be to “absorb the stablecoin supply that wants to exit.”
As a result, Kwon voted to enhance the base pool of special drawing rights from 50 million to 100 million. In addition, Terra’s founder stated that PoolRecoveryBlock can be reduced from 36 to 18. According to Kwon, this will allow the system to “absorb UST more swiftly.”
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