Tether stabilizes after burning 3 billion tokens amid redemptions

The world’s largest stablecoin destroyed a total of 3 billion USDT tokens in an account known as Tether Treasury through two separate burns on Thursday, according to data from blockchain tracker Whale Alert.

See related article: Terra back online but LUNA, UST still on life support

Fast facts

• “Burn burn burn,” Tether chief technology officer Paolo Ardoino tweeted on Thursday, along with a screenshot of the burns recorded by Whale Alert.
• This came after TerraUSD, which should be tentatively pegged to the U.S. dollar, plunged to $0.2356 on Friday morning Asia time, according to CoinMarketCap.
• USDT’s market capitalization was at US$79.41 billion at the time of publishing compared with US$82.9 billion 24 hours ago, CoinGecko data showed.
• Tether is subject to burn an equal amount of USDT when users apply to redeem the stablecoin for fiat.
• The price of dollar-pegged USDT is now at US$1.01, recovering from a 24 hour low of US$0.980, CoinGecko data showed.

See related article: Terra’s UST fiasco cited by Yellen, who warns about stablecoins

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• Source: https://forkast.news/headlines/tether-stabilizes-burn-tokens-amid-redemptions/

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