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- Following the latest instances in the stablecoin space, Tether (USDT) has announced a chain swap to transfer USDT assets from Tron to Ethereum and Avalanche.
- 1 Billion USDT will be transferred to the Ethereum blockchain, whereas an additional 20 Million to Avalanche.
- Although the company highlighted that it is not facing issues, the business is going as usual.
Stablecoin’s section in the cryptocurrency industry has made a significant position now. And after the recent developments in the stablecoin space, Tether (USDT) has recently announced it is planning a chain swap to shift USDT assets from Tron’s TRC 20 to Ethereum and Avalanche’s blockchain network.
Tether highlighted that 1 Billion USDT would be moved from Tron to Ethereum blockchain via a recent Tweet. At the same time, the additional 20 Million USDT would be transferred to Avalanche. However, this process would not result in an alteration in the total supply of the stablecoin.
This move by Tether comes after the recent breakdown in the stablecoin after TerraUSD (UST) and Terra (LUNA) instances. Furthermore, USDT also witnessed price fluctuations as it fell under the $0.99 mark on Thursday. And this attracted concerns from the folks that the popular stablecoin is also seeing positions of struggle now.
These recent changes in the stablecoin sphere have indeed caused fear, uncertainty, and doubt among investors and enthusiasts.
According to Tether, which signified in a statement recently, that verifies customers can still redeem USDT on its website. And that they are not facing any issues even after honoring 300 Million USDT redemptions in the last twenty-four hours.
According to Paolo Ardoino, the Chief Technology Officer at Tether, USDT is not like algorithmic stablecoins like UST. And he seems quite optimistic about USDT as it has a conservative, strong, and liquid portfolio with cash and cash equivalents.
Whereas Do Kwon, the founder of Terra, also highlighted his plans to restore the UST stablecoin peg. He highlighted that before re-pegging UST, The path forward would be to absorb the stablecoin supply that wants to exit.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
