Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Stable Coins Forum => USDT Forum => Topic started by: fitload on October 25, 2018, 01:09:59 PM
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Tether, the company that issues the dollar-linked coin tether(USDT) announced on Wednesday via Twitter that it has “redeemed a significant amount” of tokens from the circulating supply and will now “destroy” 500 million USDT from the Tether treasury wallet.
The tokens which were previously held in an account known as the “Tether treasury.” The past few weeks have seen massive influxes of USDT to the Treasury, particularly after the cryptocurrency lost parity with the U.S. dollar last week amid questions about Tether’s access to banking services. Usually, the value of the coin is stable almost at the same value as the US dollar.
This redemption is outlined by Tether in their white paper which states that each tether redeemed of issued corresponds to a deposit or withdrawal of funds into the firm’s bank account; in this case, a withdrawal.
According to the firm, this will leave 446 million USDT remaining...
Read More: https://news.bitzamp.com/tether-company-burns-over-500-million-tether-usdt-tokens/ (https://news.bitzamp.com/tether-company-burns-over-500-million-tether-usdt-tokens/)
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Good news because it's a measure in time with SEC investigation.
SEC is investigating if really there is a corrispondence 1:1 with dollars.
I guess that liquidity of crypto world can increase if SEC approves Tether crypto.
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I believe this will be a good news for tether users because of late there was concerns as to whether tether really is equivalent to 1USD.
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To guarantee their value equal to 1 dollar in fiat, burn tokens should happen. Hope the USDT's value will go back to its true price.