Tether Coordinates With Huobi Amid FUD About TRC20

Key Points:

• Tether announced coordination with Justin Sun’s Huobi exchange to perform a chain swap, converting from Ethereum ERC20 to TRON TRC20.
• TRC20 USDT did not meet the anti-money laundering requirements of tools such as Chainalysis, so it was rejected by institutions and relatively compliant OTC merchants.

On January 13, 2023, Tether announced to coordinate with Justin Sun’s Huobi exchange to perform a chain swap, converting from Ethereum ERC20 to TRON TRC20, amidst some FUD about TRC20 in the Chinese market.

The story has begun when Wu Blockchain reported on January 12 that some OTC merchants in the Chinese market said that they no longer accept TRC20 USDT, and need users to go to the exchange to exchange for ERC20 USDT before trading.

As a result, the Tether team released on Twitter that Tether announced coordination with the Huobi exchange, converting from Ethereum ERC20 to TRON TRC20 and during the process of coordinating, the total supply of Tether will not change.

In few minutes Tether will coordinate with Huobi to perform a chain swap, converting from Ethereum ERC20 to Tron, for 400M USDt. The #tether total supply will not change during this process.

Learn more about chain swaps ⬇️https://t.co/abfgnEMqkQ

— Tether (@Tether_to) January 13, 2023

Right after the statement was made public on social media, Whale Alert reported that $399,999,990 USDT was transferred from Huobi to Tether Treasury.

🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 399,999,990 #USDT (400,079,989 USD) transferred from #Huobi to Tether Treasuryhttps://t.co/9fn5i1Xszc

— Whale Alert (@whale_alert) January 13, 2023

However, the story has not been done yet, in particular, Wu Blockchain yesterday reported that the TRC20 refusal of Chinese OTC merchants was suspected to be related to the Justin Sun and TRON FUD spread by the community.

Recently, some OTC merchants in the Chinese market said that they no longer accept TRC20 USDT, and need users to go to the exchange to exchange for ERC20 USDT before trading. It is suspected to be related to the Justin Sun and TRON FUD spread by the community. Exclusive

— Wu Blockchain (@WuBlockchain) January 12, 2023

As Wu Blockchain explained in the thread of the situation above, the reason why OTC merchants refused to accept TRC20 USDT is that it did not meet the anti-money laundering requirements of tools such as Chainalysis, so it was rejected by institutions and relatively compliant OTC merchants.

Matrixport, founded by Jihan Wu, has suspended the deposit and withdrawal of TRC20 USDT since the 9th, and there is no announcement until now.

Coincu reported on January 12 that the cryptocurrency exchange Huobi would delist the following 33 tokens: ABT, ATP, APN, AST, DIE, DHT, DFA, EDEN, GEAR, HC, INDI, IOI, INV, IRIS, GCOIN, GOF, KMA, MTA, NAS, OPUL, PEARL, PRIMATE, QASH, SMT, SLC, SKU, SOC, TALK, and the notice will take effect on January 16.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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