Over Half Of The USDT Tokens In Circulation Get Redeemed And Burnt By Tether LTD 

tether-usdt

Tether is in the news again as Tether Ltd, the issuer of USDT, has just announced that a chuck of the USDT tokens it redeemed has been burnt. This makes up for about 500 million USDT tokens that are in the Tether Treasury wallet. This is according to a post that was published on the 24th of October 2018. After these tokens were burnt, only 446 million tokens were left in the Tether Treasury ahead of the insurance policies Tether has in store. The 500 million tokens makeup for 52.8% of the total USDT in circulation.

Tether (USDT) Price Today – USDT / USD

Name Price24H (%)
Bitcoin (BTC)
$6,311.86
-1.44%
Tether (USDT)
$0.99
0.11%

You can check out the redemption on OMNI blockchain explorer. The transition for 500 million USDT tokens in block 547155 has been confirmed. The platform also advises the public to look into conceptual outlines of the token insurance and redemption process. Part of the outline users were referred is as follows.

“Every USDT token that is redeemed or issued as recorded on Bitcoin’s blockchain, must correspond to the specific withdrawal or deposit of funds held in the company’s bank”.

The white paper notes that for the sake of the public, and the transparent nature of the Bitcoin blockchain, the accounting process must ensure that transactions for the token must be tracked and verified. The information on OMNI blockchain explorer is that 466,678,763.48 USDT tokens are remaining in circulation. This is in line with the statement by the company.

Tether And Transparency

For a long time now, there has been a debate about the level of transparency within Tether Ltd. Some experts claim that Tether Ltd isn’t as transparent as a blockchain company should be. Not too long ago, Micheal Novogratz, a cryptocurrency entrepreneur, said that he is unsure about Tether’s claims that it is backed by the USD. Bitfinex, a close associate of Tether Ltd, has also been cut up in the crossfire on several occasions. In fact, the exchange has been accused of manipulating the price of BTC using Tether among other things.

The large-scale destruction of USDT tokens by Tether has contributed more to the already heated speculation. You’ll recall that the coin is already under a lot of heat thanks to the fact that it lost its peg against the USD. This led to speculation that Tether Ltd was buying back USDT tokens at a discounted price in a bid to manipulate the market.

Some other experts have suggested that Tether may be having issues because they are unable to back the tokens adequately. The rumored banking difficulties and insolvency facing Bitfinex, bearish market, and lack of transparency have all contributed in reducing the faith investors have in Tether.

Tether (USDT) Price Analysis

At the time of writing, USDT was trading at $0.987513. This shows that it is up by 0.05% against the USD and up by 0.28% against Bitcoin. However, it is still yet to regain its USDT peg. The next few days of trading will determine if the price action will change or not.


SEE ALSO:   According To Ripple’s Brad Garlinghouse, XRP Is Explicitly Legalized And Endorsed In Thailand 

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