Tether stablecoin developers from Tether Limiten assured traders of the reliability of their USDT and warned of speculators trying to capitalize on the manipulation of opinions.
Representatives of Tether Limiten announced on Twitter that they are going to move more than $1 billion of stablecoins from the Tron blockchain to Ethereum, as well as an additional $20 million to Avalanche. According to the announcement, this will not change the total supply of USDT. The announcement comes amid fears of a collapse in the stablecoin due to the recent drop in Terra (LUNA) and TerraUSD (UST).
Earlier, the price of the stablecoin dropped to $0.95 on some cryptocurrency exchanges. This raised concerns among traders despite USDT being considered backed by traditional currencies. Unlike TerraUSD, whose reserves are backed by bitcoin (BTC), whose rate has collapsed to a record high of $26,700 over the past year. Be that as it may, traders continue to sell their USDT at a lower price.
Tether CTO Paolo Ardoino has already rushed assure traders that USDT is not like algorithmic stablecoins like UST. According to him, Tether has a “strong and liquid” portfolio, which includes traditional money and its equivalents. These include Treasury bills, commercial paper, and money market funds.
Ardoino stated that now some are trying to sow fear and doubt in stablecoins by manipulating information. Some traders, the expert says, are trying to get rich this way. There are companies that buy USDT below $1 on some exchanges and sell at a higher price on the Bitfinex cryptocurrency exchange or Tether, says the CTO.
Recall that USDT was previously launched on the Kusama network of the Polkadot decentralized blockchain in order to strengthen its position in the stablecoin market.
Source: Bits
I’m James Harper, a highly experienced and accomplished news writer for World Stock Market. I have been writing in the Politics section of the website for over five years, providing readers with up-to-date and insightful information about current events in politics. My work is widely read and respected by many industry professionals as well as laymen.
