Tether Announces Upcoming USDT Redemption, Will Destroy $500 Million Tokens on October 24
In a blog post released a few hours ago, Tether announced that it will be destroying 500 million USDT tokens from the Tether treasury wallet. The decision has been taken due to the fact that over the course of the past week, Tether redeemed an important number of USDT token from the circulating supply.
In this way, Tether will leave 466 million USDT tokens in the wallet as a preparatory measure for future USDT issuances.
— Tether (@Tether_to) October 24, 2018
The whole Tether issuance and redemption process can be seen in the Tether whitepaper published by the company. At the same time, Tether informs that the issuance and redemption are visible on the Tether treasury balance that is based on the OMNI blockchain.
Tether has been experiencing different difficulties in the past weeks. Everything started with the fact that Nobel Bank announced that it was waiting for a new buyer and that Tether and Bitfinex were not clients of the bank anymore. After it, Tether lost its peg with the US dollar since the community did not know whether Tether had the necessary funds to back its stablecoin.
Since that moment, Tether was not able to recover its stable price close to $1 dollar. Indeed, it is currently being traded around $0.985 dollars. Additionally, Tether’s market capitalization fell 23% since the first week of October.
On October 24, Tether’s market capitalization fell under $2 billion dollars for the first time after January 2018. Tether is experiencing turbulent weeks and it will be a difficult task for it to recover investors’ trust.