Tether ‘Mints’ 300M USDt Causing A Stir On Crypto Twitter; Turns Out To Be A Omni To ERC20 Swap
Tether, the famous stablecoin operator of the USDT tokens, has recently decided to mint 300 million USDT tokens. This was part of a swap that had the goal of creating Ethereum-based tokens to replace Bitcoin-based Omni protocol ones. However, despite the creation of the new tokens, it does not seem yet that the old tokens were burned.
The announcement was originally made by Whale Alert, a Twitter profile that tweets when huge amounts of tokens are either created or exchanged. The profile explained that the tokens were created to replace old ones, but noted that the previous BTC-based tokens were not burned until the time of this report.
Tether was reached out later and the company confirmed that the move was part of a swap. The tokens are still not able to be used by anyone and will only be liberated into the world after the burn happens. This is made in order to prevent the network from having a higher market cap for a few hours.
Recently, Tether minted 5 billion USDT tokens by mistake. The company soon discovered the issue and burned the tokens. Unfortunately, this was not the only controversy related to the company recently. Tether was accused of manipulation and lacked of transparency several times and it was recently attacked by the New York Attorney General for lending money to its sister company Bitfinex.