Tether to move over 1B USDT from Tron to Ethereum and Avalanche
Tether (USDT) has announced that it is orchestrating a chain swap to transfer USDT assets from Tron’s TRC20 to Ethereum and Avalanche’s blockchain, in response to recent events in the stablecoin space.
Tether announced in a tweet that 1 billion USDT will be transferred from Tron’s blockchain to Ethereum. An additional 20 million USDT will be converted to Avalanche, on the other hand.
After the recent TerraUSD (UST) and Terra (LUNA) debacles, there were fears of a stablecoin implosion. Apart from that, USDT fluctuated in price, falling below $0.99 cents on several trading platforms on May 12. As a result, many people are concerned that the most widely traded stablecoin is struggling.
Tether CTO Paolo Ardoino informed traders in a Cointelegraph interview that USDT is not like algorithmic stablecoins like UST. Tether has a “strong, conservative, and liquid portfolio that consists of cash and cash equivalents,” according to Ardoino. Treasury bills, money market funds, and commercial paper are all examples of this.
Ardoino also mentioned that certain traders are profiting from the current negative press surrounding stablecoins. He explained that some companies acquire USDT for less than $1 on some exchanges then redeem it for more than $1 on Bitfinex and the Tether website.
Terra’s’rescue plan’ is still on the loose as LUNA falls below $5 and Bitcoin reaches ‘$138K’ in UST.
Do Kwon, the founder of Terra, recently revealed plans to reestablish the UST stablecoin peg. Before re-pegging UST, Kwon indicated that the first step will be to “absorb the stablecoin supply that wants to exit.”