Tether Fiasco: 500 Million Tether Stable Coins Burned

On Wednesday, 1:00 PM (ET), a total of 500 million USDT tokens were dumped and was announced on Twitter via its official account.

Tether Fiasco

Tether has been facing a lot of rumors in the recent times with the slump of its price even while pegging to the USD. Users in the community have been seeking proof if this stable coin has actual linking to the USD.

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The tokens which have been dump were likely in an account- the “Tether treasury.” From October 14, 2018 Tether (USDT) was continuously falling below the $1 price point until October 23, 2018. However, the tokens were transferred to the company-controlled Treasury wallet. To make matters more interesting these transfers came from Bitfinex addresses. Basically, a cryptocurrency exchange that overlaps with Tether in terms of ownership and management

Bitfinex in Scene

Now, Bitfinex in itself has been facing a lot of speculation of insolvency from the community and its links to tether. The cold wallet balance of Bitfinex has reduced by 100,000 bitcoins since September. This made a user believe that the exchange is dumping to push tether out of the market.

Moreover, this would bring back the tethers price back to $1 mark. Due to these actions, Tether’s supply in the market reduces to a total of $2 billion. Also, the company destroys and burns many of these tokens.

Kasper Rasmussen, Bitfinex’s director of communications clearly denies these allegations. He confirms that both, tether and the exchange will guarantee 1-for-1 redemptions. Further stating that Bitfinex is one of Tether’s customers. Hence when Tether’s circulation exceeds the requirements some of the coins was dump for proper functionality.

As per their announcement on Wednesday, Tether said that it had not burned all the tokens in the Treasury account and that 466 million tokens still remain, for worst case scenarios.

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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