Stablecoin Tether Burns 500 Million USDT From Its Treasury Wallet

Marco Verch / Flickr

Tether,¬†the company behind the world’s largest stablecoin,¬†USDT, announced on Wednesday that it has destroyed 500 million USDT from its treasury wallet.

The token burn comes a day after it was discovered that 50 million UDST was transferred¬†to the Tether’s treasury wallet. In total, more than¬†680 million tokens have been transferred to the wallet since October 14, when the price of the dollar-pegged coin dropped below $0.95 following concerns about Bitfinex’s liquidity.

Read: Top Crypto Exchanges Scramble to List Stablecoin Alternatives to Tether

“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,” said the Tether team in the announcement.

Tether currently denies that it is intentionally reducing supply, but some skeptics believe that Bitfinex recently sold 100,000 worth of BTC to fund this redemption.

This news comes a day after San Francisco-based cryptocurrency giant Coinbase announced that it has added support for USD Coin (USDC), a stablecoin created by competing crypto exchange Circle, the owner of Poloniex.

More:¬†Upcoming USDT Redemption ‚Äď October 24th, 2018
Photo: Marco Verch / Flickr

Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.

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