Home News Tether to move over 1B USDT from Tron to Ethereum and Avalanche

Tether to move over 1B USDT from Tron to Ethereum and Avalanche

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

The platform announced in a tweet that 1 billion USDT will be transferred from the Tron network to the Ethereum blockchain. Avalanche will be transformed for an additional 20 million USDT. Tether claims that the overall supply of stablecoin will not change as a result of this.

After the recent TerraUSD (UST) and Terra (LUNA) debacles, the news came amid worries of a stablecoin implosion. Apart from that, the price of USDT fluctuated, falling below $0.99 cents on some trading platforms on May 12. As a result, many people are worried that the most widely traded stablecoin is struggling.

Tether CTO stated that USDT is different from algorithmic stablecoins like UST

Tether CTO Paolo Ardoino informed traders in an interview that USDT is different from algorithmic stablecoins like UST. The platform has a “strong, conservative, and liquid portfolio of cash and cash equivalents,” according to Ardoino. Treasury bills, money market funds, and commercial paper are examples of such investments.

Ardoino also noted that certain traders are profiting from the continued negative press surrounding stablecoins. He explained that some companies acquire USDT for less than $1 on some exchanges and then redeem it for more than $1 on Bitfinex and the Tether website.

Meanwhile, Terra founder Do Kwon recently revealed plans to bring the UST stablecoin back into circulation. The road forward, according to Kwon, will be to “absorb the stablecoin supply that wants to exit” before re-pegging UST.

As a result, Kwon agreed to enhance the base pool of special drawing rights from 50 million to 100 million. Furthermore, Terra’s founder stated that PoolRecoveryBlock might be reduced from 36 to 18. The system will “absorb UST more quickly,” according to Kwon.

Tether lauds Myanmar shadow government for making USDT an official currency

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