Tether’s Follow-up: The Stablecoin Burned 500 Million Tokens

Dawid Paluch
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On Wednesday, Tether, a dollar-backed stablecoin, said that it had burned 500 million of its tokens (USDT). The company announced it via Twitter account. Bitfinex, a crypto exchange, backs up the stablecoin.

The past few weeks have seen massive movement on stablecoin market. Last week, news broke up that Tether doesn’t have enough money to back up every token. The USDT’s price fell down and everyone pushed the panic button. A few days later, we reported that market looks for new stablecoin.

Tether burns tokens

The Wednesday post on Tether’s Twitter account informed the public that 500 million tokens were destroyed.

Tether had over 2.5 billion tokens on the market. Right now, there are less than 2 billion. It means that Tether lost over 25%.

Redemption

In a short statement on Tether’s website, the company said that it had recovered a significant amount of USDT from the circulating supply. Tether also mentioned:

“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.”

The statement also indicates that there is still roughly 1.5 billion USDT on market.

All of these transfers came from an address owned by Bitfinex. The cryptocurrency exchange is interlinked with the stablecoin in terms of ownership and management.

However, Bitfinex denied that it was aimed at saving the stablecoin. Kasper Rasmussen, the Director of Communications in Bitfinex, said that his company’s action “does not have anything to do with defending dollar parity.”

The company and Bitfinex still claim that every USDT can be redeemed with U.S. dollar and not one person can say that they converted Tethers to dollars, and lost money.

The public is skeptical that Tether can back their claims, though.

 

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