BTC Wires

Tether Destroys 500 Million Tokens

Tether (USDT) is a cryptocurrency, whose tokens are issued by Tether Limited and are called stable coins, as they are always designed to be equivalent to 1 USD.  USDT is issued on the Bitcoin blockchain via the Omni Layer Protocol.
Tether Limited has, however, very recently destroyed 500 million units of the embattled stablecoin, which has also been the victim of a lot of controversies.

As per Omni Explorer, the firm, early today morning, transferred 500 million USDT from the token’s treasury address to their official issuing address. However, as soon as the transaction had been confirmed, the tokens were revoked by the issuing address, thus effectively removing them from all circulations and also destroying them at the same time.

USDT’s market cap has been on the decline, in October, the main cause behind them is that fact that holders of USDT tokens have redeemed nearly 800 million USDT, and at the same time, almost 1 billion tokens were sitting in the treasury, out of circulation.

Tether has at 17:29 UTC published an official statement, reinforcing that the news about the destruction of the tokens was indeed genuine.

“Over the course of the past week, Tether has redeemed a significant amount of USDT from the circulating supply of tokens. 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… 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.”