Tether Pulled $300 Million in Cryptocurrency out of Circulation Last Week

tether USD cryptocurrency stablecoin

Tether LLC, the issuer of the eponymous USD-backed cryptocurrency tether (USDT), pulled $300 million worth of the “stablecoin” out of circulation last week, just days before the token lost its dollar peg.

Blockchain data from Omni, the second-layer protocol that operates on the Bitcoin blockchain and serves as the infrastructure for the tether token, reveals that cryptocurrency exchange Bitfinex sent 300 million USDT to the Tether treasury address last week through two separate transactions.

tether
Source: Omni Explorer

The first, executed on Oct. 9, returned 100 million USDT to Tether. Just five days later, on Oct. 14, Bitfinex — which reportedly shares a management team with Tether — sent another 200 million tokens to the treasury address. Previously, on Oct. 3, Bitfinex had returned 10 million USDT to the treasury, which has not issued any new tokens since Sept. 21.

According to Tether’s “Transparency” report, the company has been authorized to issue another $486 million worth of USDT but has not yet done so. That number correlates with the more than 486 million USDT that are currently sitting in the company’s Omni wallet.

Tether market cap
Source: tether.to

At present, USDT has an outstanding market cap of 2.5 billion tokens, down from an all-time high of nearly 2.9 billion. Despite purportedly being pegged to the U.S. dollar at a 1:1 ratio, the cryptocurrency’s market cap has declined even further, to a present value of about $2.4 billion, representing a $100 million discount to the alleged value of its outstanding balance.

tether price market cap
Source: CoinMarketCap

That’s because, as CCN reported, USDT’s dollar peg evaporated last night, dropping the token’s value as low as $0.92 (and lower on some exchanges), though it has since recovered to about $0.96.

Tether has long been a controversial asset within cryptocurrency circles, but this controversy has intensified in recent days amid reports that Bitfinex and Tether are once again struggling to find a consistent banking partner. Bitfinex confirmed to CCN that fiat deposits are currently paused but has said that the situation should normalize within a few days.

Meanwhile, traders are increasingly opting to use other stablecoins, as new offerings from heavyweights such as Gemini, Circle, and Paxos are gradually chipping away at tether’s stranglehold on that multi-billion dollar market.

Following their respective listings, those tokens — Gemini Dollar (GUSD), USD Coin (USDC), and Paxos Standard (PAX) — quickly began to trade at a slight premium to USDT, suggesting that traders were more confident in their USD backing, or at least that they believed these new tokens could more easily be redeemed for the underlying assets.

Those premiums have widened on Monday, in tandem with USDT’s vanishing fiat peg. As of the time of writing, GUSD, USDC, and PAX were trading at premiums of roughly 9.8 percent, 8 percent, and 9.5 percent against their USDT trading pairs on various exchanges.

Featured Image from Shutterstock

Follow us on Telegram or subscribe to our newsletter here.

• Join CCN’s crypto community for $9.99 per month, click here.
• Want exclusive analysis and crypto insights from Hacked.com? Click here.
• Open Positions at CCN: Full Time and Part Time Journalists Wanted.

Advertisement



About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews



bitcoin
Bitcoin (BTC) $ 61,922.00
ethereum
Ethereum (ETH) $ 3,740.27
binance-coin
Binance Coin (BNB) $ 477.11
tether
Tether (USDT) $ 0.999381
cardano
Cardano (ADA) $ 2.12
xrp
XRP (XRP) $ 1.08
solana
Solana (SOL) $ 156.17
polkadot
Polkadot (DOT) $ 40.74
dogecoin
Dogecoin (DOGE) $ 0.253779
usd-coin
USD Coin (USDC) $ 0.99988
USD
EUR
GBP
bitcoinBitcoin (BTC)
$ 61,922.00
ethereumEthereum (ETH)
$ 3,740.27
tetherTether (USDT)
$ 0.999381
bitcoin-cashBitcoin Cash (BCH)
$ 603.58
litecoinLitecoin (LTC)
$ 182.29
bitcoinBitcoin (BTC)
53.385,12
ethereumEthereum (ETH)
3.224,62
tetherTether (USDT)
0,861601
bitcoin-cashBitcoin Cash (BCH)
520,37
litecoinLitecoin (LTC)
157,16
bitcoinBitcoin (BTC)
45,050.55
ethereumEthereum (ETH)
2,721.18
tetherTether (USDT)
0.727087
bitcoin-cashBitcoin Cash (BCH)
439.13
litecoinLitecoin (LTC)
132.62

Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Behind The Scenes: How this Crypto Community Responded to + $50m Hack
October 18, 2021
Crypto Scams
Crypto Scams Still Persistent In 2021, SEC Warns About Red Flags To Watch
September 9, 2021
Poly Network
Here’s How Hackers Stole Over $600 million in the Poly Network Attack
August 12, 2021
The World’s Most Infamous Crypto Hacks and Scams
July 31, 2021
Cryptocurrency Exchanges
Cryptocurrency Exchanges and the Plague of Scams and Bans
June 29, 2021

Blockchain/Cryptocurrency Questions and Answers

ICo Presale
The Science Behind ICO Presales…
October 14, 2021
Beginner’s Guide to Investing in Cryptocurrency
August 9, 2021
Short-Sell Cryptocurrency
How to Short-Sell Cryptocurrency: A Brief Overview
July 17, 2021
Klaytn
What Is Klaytn (KLAY) And How Does It Work?
July 16, 2021
Cryptocurrencies
Our Crypto Roundup Interview Asks- Do Cryptocurrencies Have a Future?
July 15, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin62,133 0.19 % 1.84 % 13.56 %
Ethereum3,753.9 0.85 % 1.52 % 9.41 %
Binance Coin479.82 0.19 % 3.06 % 18.67 %
Tether0.9986 0.03 % 0.08 % 0.23 %
Cardano2.130 0.43 % 1.33 % 3.06 %
XRP1.090 0.48 % 3.18 % 4.31 %
Solana157.12 0.29 % 2.06 % 6.38 %
Polkadot30.87 2.19 % 17.29 % 10.73 %
Dogecoin0.2562 0.01 % 8.18 % 11.75 %
USD Coin1.000 0.14 % 0.20 % 0.17 %

bitcoin
Bitcoin (BTC) $ 61,922.00
ethereum
Ethereum (ETH) $ 3,740.27
binance-coin
Binance Coin (BNB) $ 477.11
tether
Tether (USDT) $ 0.999381
cardano
Cardano (ADA) $ 2.12
xrp
XRP (XRP) $ 1.08
solana
Solana (SOL) $ 156.17
polkadot
Polkadot (DOT) $ 40.74
dogecoin
Dogecoin (DOGE) $ 0.253779
usd-coin
USD Coin (USDC) $ 0.99988