Tether Is All Set To Transfer 1B USDT To Ethereum
After the latest advancements made in the stablecoin space, USDT (Tether) has declared to be organizing a chain swap for the shift of USDT assets taken from the TRC20 of Tron to Avalanche and Ethereum’s blockchain. In a post shared on Twitter, it was stated by Tether that up to 1 billion in USDT assets are to be shifted from the blockchain of Tron to that of Ethereum.
While looking at the other side, a further 20M worth of USDT is to be transferred to Avalanche. Tether brought to the front that in this way the cumulative stablecoin supply will not be altered. It also noted that it will take just some minutes for Tether to collaborate with some third party to conduct a chain swap, transferring assets to Ethereum ERC20 from Tron TRC20, for 1 billion in USDT as well as to Avalanche from the same Tron TRC20, for nearly 20 million in USDT.
As per the platform, no variation will be made to the cumulative supply in the respective procedure. The declaration was witnessed during apprehensions that a meltdown would probably occur in the value of stablecoin following the recent debacle taking into account LUNA (Terra) and UST (TerraUSD). In addition to this, some fluctuations also took place in the price of USDT, decreasing below approximately 99 cents over several exchange venues on 12th May. As a consequence of this, the spoken apprehensions regarding the topmost stablecoin are growing day by day.
Nonetheless, in an interview, Paolo Ardoino (the CTO of Tether) claimed that the platform has a resilient conservative, as well as a liquid portfolio comprising cash as well as equivalents to cash. This takes into account commercial paper assets, currency market funds, as well as treasury bills. Along with this, Ardoino disclosed that the continuous FUD regarding stablecoins is a money-making flood to benefit some of the traders. In his elaboration, some companies are purchasing USDT at less than $1 from a few exchanges and after that redeem it at more than $1 on Tether and Bitfinex venues.
In the meantime, Do Kwon (the founder of Terra) recently revealed his strategy for the restoration of the stablecoin peg of the UST. In his words, in advance of UST’s re-pegging, the objective will be to engross the stablecoin supply for someone who intends to quit. Due to this, it was asserted by Do Kwon that an increase would be witnessed in the base pool taking it from having up to 50M to 100M exceptional drawing rights.
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