Tether, the company pegged by U.S. dollars has announced in a tweet that it has destroyed 500 million Tether (USDT) tokens.
As per the official post published on October 24, Tether, who issued the USDT said that they have retrieved important amount and is planning to destroy the 500 million USDT from the treasury wallet.
The token used to be in the Tether treasury account. As the USDT facing circulating up and downs in the past few weeks, and also after the crypto lost consistency with the USD, therefore, it raises questions about the access of Tether to the banking services.
According to the firm, in order to prepare for future USD issuances, this will leave around 446 million USDT in the wallet and the token which are burned account for 52.8% of the former supply.
In between 14 October and 23 October, around 680 million USDT were shifted to the wallet of the company. The transfer came from an address authorized by cryptocurrency exchange Bitfinex. The firm Bitfinex overlaps with Tether when it comes to management and ownership.
The Tether stated that any tether which is issued or redeemed and as publicly recorded by BTC blockchain will correspond to any transaction of funds from the bank account of the company.
Tether, in their tweet, clarified that they have destroyed 500M USDT from the wallet and they also mentioned the ‘txid’. Further to give more information to readers, they have attached a link that states about the upcoming USDT Redemption.
— Tether (@Tether_to) October 24, 2018
The director of communications at Bitfinex said that tokens of Tether redeemed when the circulation amount exceeded the amount required for firms like Bitfinex and Tether to operate. And as per him, the reason for the destroyed tokens which came from Bitfinex’s wallet is because Bitfinex is the leading customer of Tether.