Tether, the firm behind the Stablecoin USDT announced in an official statement on October 24 that they have redeemed a significant amount of the total circulating supply of its tokens.
Around 500 million USDT from the Tether treasury wallet was reportedly slated for destruction according to the update while 446 million USDT will be left as a “preparatory measure for future USDT issuances.”
Tether’s redemption of its tokens is not a totally strange idea since the process of redemption and issuance of the Stablecoin tokens were clearly outlined in the Tether whitepaper.
500 million USDT Destructive Transaction Confirmed
Tether’s latest redemption which has taken away around 52.8% of the total coins in circulation until this point can be viewed on the OMNI blockchain explorer.
A confirmed transaction made today and visible on the explorer shows the redemption of 500 million USDT in block 547155. The total value of USDT in circulation after the dump was 466,678,763.48.
The redemption process aligns with what Tether stated on its whitepaper that “every tether issued or redeemed, as publicly recorded by the Bitcoin blockchain will correspond to a deposit or withdrawal of funds from the [company’s] bank account.”
However, a fiat account would still be needed to confirm that the firm has withdrawn the said funds from the bank account. A publication of bank account balances (Proof-of-Funds) by Tether will serve this purpose.
Is Tether Heading To $1.01?
While the Stablecoin is supposed to be traded 1:1 to the USD, it has for the last couple of weeks been trading below $1. USDT price at press time was $0.98, a slight recovery from the $0.96 which it slumped to on October 15.
Popular crypto personality, WhalePanda has led the rounds in speculating after the latest dump that USDT is set for a rebound. According to him, this would be caused by an almost certain scarcity of USDT in the coming days.
$USDT scarcity incoming! $1.01 soon.
— WhalePanda (@WhalePanda) October 24, 2018
It will be interesting to find out what impact the destruction of 500 million USDT will have on the Stablecoin’s price in the coming days.