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Market

Tether Is Transferring Over $1 Billion In USDT From Tron To Ethereum And Avalanche

May 12, 2022 - Around 2 mins mins to read

Tether (USDT) has announced that it is orchestrating a chain swap to transfer USDT assets from Tron’s TRC20 to Ethereum and Avalanche’s blockchain, in response to recent events in the stablecoin space.

Tether Is Transferring Over 1 Billion In USDT From Tron To Ethereum And Avalanche
Tether Is Transferring Over $1 Billion In USDT From Tron To Ethereum And Avalanche

Tether announced in a tweet that 1 billion USDT will be transferred from Tron’s blockchain to Ethereum

An additional 20 million USDT will be converted to Avalanche, on the other hand. Tether claims that this will have no effect on the stablecoin’s total supply.

After the recent TerraUSD (UST) and Terra (LUNA) debacles, there were fears of a stablecoin implosion. Apart from that, USDT fluctuated in price, falling below $0.99 cents on several trading platforms on May 12. As a result, many people are concerned that the most widely traded stablecoin is struggling.

Tether Is Transferring Over $1 Billion In USDT From Tron To Ethereum And Avalanche
Tether Is Transferring Over $1 Billion In USDT From Tron To Ethereum And Avalanche

Tether CTO Paolo Ardoino informed traders in USDT is not like algorithmic stablecoins like UST. Tether has a “strong, conservative, and liquid portfolio that consists of cash and cash equivalents,” according to Ardoino. Treasury bills, money market funds, and commercial paper are all examples of this.

Ardoino also pointed out that the ongoing FUD surrounding stablecoins is becoming a money-making stream to some traders. He explained that some firms are buying USDT below $1 on some exchanges and are redeeming it for above $1 on Bitfinex and the Tether website. 

Do Kwon, the founder of Terra, recently revealed plans to reestablish the UST stablecoin peg. Before re-pegging UST, Kwon indicated that the first step will be to “absorb the stablecoin supply that wants to exit.”

As a result, Kwon voted to enhance the base pool of special drawing rights from 50 million to 100 million. In addition, Terra’s founder stated that PoolRecoveryBlock can be reduced from 36 to 18. According to Kwon, this will allow the system to “absorb UST more swiftly.”

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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Annie

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1 billion USDT

Avalanche

LUNA

Stablecoin

Terra

TerraUSD

Tether

trc20

TRON

USDT

UST

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.
Market

Tether Is Transferring Over $1 Billion In USDT From Tron To Ethereum And Avalanche

Tether (USDT) has announced that it is orchestrating a chain swap to transfer USDT assets from Tron’s TRC20 to Ethereum and Avalanche’s blockchain, in response to recent events in the stablecoin space.

Tether Is Transferring Over 1 Billion In USDT From Tron To Ethereum And Avalanche
Tether Is Transferring Over $1 Billion In USDT From Tron To Ethereum And Avalanche

Tether announced in a tweet that 1 billion USDT will be transferred from Tron’s blockchain to Ethereum

An additional 20 million USDT will be converted to Avalanche, on the other hand. Tether claims that this will have no effect on the stablecoin’s total supply.

After the recent TerraUSD (UST) and Terra (LUNA) debacles, there were fears of a stablecoin implosion. Apart from that, USDT fluctuated in price, falling below $0.99 cents on several trading platforms on May 12. As a result, many people are concerned that the most widely traded stablecoin is struggling.

Tether Is Transferring Over $1 Billion In USDT From Tron To Ethereum And Avalanche
Tether Is Transferring Over $1 Billion In USDT From Tron To Ethereum And Avalanche

Tether CTO Paolo Ardoino informed traders in USDT is not like algorithmic stablecoins like UST. Tether has a “strong, conservative, and liquid portfolio that consists of cash and cash equivalents,” according to Ardoino. Treasury bills, money market funds, and commercial paper are all examples of this.

Ardoino also pointed out that the ongoing FUD surrounding stablecoins is becoming a money-making stream to some traders. He explained that some firms are buying USDT below $1 on some exchanges and are redeeming it for above $1 on Bitfinex and the Tether website. 

Do Kwon, the founder of Terra, recently revealed plans to reestablish the UST stablecoin peg. Before re-pegging UST, Kwon indicated that the first step will be to “absorb the stablecoin supply that wants to exit.”

As a result, Kwon voted to enhance the base pool of special drawing rights from 50 million to 100 million. In addition, Terra’s founder stated that PoolRecoveryBlock can be reduced from 36 to 18. According to Kwon, this will allow the system to “absorb UST more swiftly.”

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.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

CoinCu News

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