Tether Has Destroyed 500 Million of USDT from Its Treasury Wallet

  • The Tether company has destroyed 500 million in USDT tokens, officially announced via their website.
  • Bitfinex were accused of feeding data that ‘doesn’t exsist’ to CoinMarketCap, which was denied by the exchange.

Tether, which is the organization behind the dollar-pegged stablecoin USDT, has announced it took steps to redeem USDT tokens. Furthermore, the company destroyed 500 million of USDT. These tokens having come from their Tether treasury wallet. Lastly, it has been noted that a remaining 466 million tokens will stay within the wallet for ‘preparatory measures’ of future USDT issuances.

During the period of 14 October to 23 October, USDT had fallen below the $1.00 mark. A total of 680 million tokens were then sent across to the Tether treasury wallet.  The transfers were said to have come via an address that was controlled by the exchange Bitfinex. Above all, the exchange is known to have overlapping management and ownership with Tether.

The chunky transactions that had taken place have been linked to the clear-out of USDT token in circulation within the market. This has seen the market cap of the token, dropping around 25% and over $600 million within this period. As of writing this, the circulating supply of USDT is currently seen at around 1.97 billion, via CoinMarketCap.

Moving Away From Tether

The drama surrounding Tether has prompted investors to look elsewhere to fulfill their need for a reputable stablecoin. As reported by Hacked’s Sam Bourgi, Coinbase noted that Circle’s USDC became the first available stablecoin, offered on their platform. Given that Circle has backing from an institutional level, i.e. Goldman Sachs, it does assist with the attractiveness in moving away from Tether.

The Gemini exchange also recently announced the launch of their very own stablecoin – the Gemini dollar (GUSD). The GUSD is said to be the first stablecoin to receive regulatory approval by the New York Department of Financial Services (NYDFS).

USDT Technical Review

USDT daily chart

The USDT price has stabilized over the past few days now, within the $0.9800 territory. In terms of upside, for now it is seemingly capped up at $0.9900, as proven in recent trading. It has failed to prove any stability of late outside of the $0.9800 territory. Furthermore, this follows on after the excessive volatility was seen on the 15th October. As a result, the price dropped to an 18-month low.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.