Bitcoin Today: Tether burned 500 mln
Price
The absence of positive developments in SEC politics, which were revealed in a recent meeting with VanEck lowered the price to 6450, but the pair met demand on these levels, which pushed it above 6500. Overall, the lateral movement continues, in awaiting of strong catalyzers, which will be able to push the price away from the 6450 – 6800 range.
Today forecast
Today most probable trading diapason: 6450 - 6800. In case of crossing the 6450 - high downward risk.
Latest news
The absence of positive developments in SEC politics, which were revealed in a recent meeting with VanEck lowered the price to 6450, but the pair met demand on these levels, which pushed it above 6500. Overall, the lateral movement continues, in awaiting of strong catalyzers, which will be able to push the price away from the 6450 – 6800 range.
Today forecast
Today most probable trading diapason: 6450 - 6800. In case of crossing the 6450 - high downward risk.
Latest news
- Tether Limited burned 500 million USDT
Tether Limited burned 500 million Tokenized American dollars USDT. Details for transaction permissions are available.
“Tether has just destroyed 500M USDT from the Tether treasury wallet with the following tx:…” - @Tether_to
The official statement said that approximately 466 million USDT remained in Tether treasury "as a preparatory measure for future USDT issuances". The company insisted that the process of destruction and release of new tokens is clearly prescribed in the whitepaper.
During the past two weeks, 680 million USDT were transferred to the controlled by Tether Limited wallets (treasury wallets), most of these transfers came from an address controlled by Bitfinex, a cryptocurrency exchange that overlaps with Tether in terms of ownership and management.
Bitfinex's cold wallet's balance has fallen by around 100,000 bitcoins since early September, leading some to speculate that the exchange has been spending bitcoin in order to take tether off the market – perhaps to return USDT/USD rate towards the $1.00 mark.
As a result of transactions to Tether treasury, the supply of USDT in circulation has dropped by around a quarter, to approximately $2 billion. Now many of these tokens, in addition to having been taken out of circulation, have been "burned" or destroyed by the company.
Kasper Rasmussen, Bitfinex's director of communications, said the action "does not have anything to do with defending dollar parity," since both the exchange and Tether guarantee 1-for-1 redemptions. He denied that Tether is intentionally scaling back supply.
Tether tokens are redeemed "when the amount circulating exceeds the amount required for e.g. Bitfinex or Tether to operate," Rasmussen said, and the reason most of the destroyed tokens came from Bitfinex's wallet is that "Bitfinex is one of the main customers of Tether."
The 2016 white paper specifies that USDT holders can redeem their tokens for U.S. dollars directly with the company. Tether maintains that every USDT token is backed by a U.S. dollar deposit.
The anonymous anti-Tether campaigner "Bitfinex'ed," however, disputed Tether's characterization of transfers to the Treasury as a "redemption," writing: "Not one person can come forward and say that they converted Tethers to dollars and got wired money from Tether."
Rasmussen, the Bitfinex spokesman, claimed otherwise, telling CoinDesk: "Yes, direct customers of Tether are able to redeem USDT through Tether Ltd."
Still, a lot of people allege that it is not possible to redeem USDT tokens for dollars with Tether, though, the company has never agreed to for the audit.
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