A gigantic transaction of $65 million was observed, with the funds belonging to Tether’s treasury, and having been sent to the Bitfinex platform.
It’s through the Twitter account Whale Alert that the USDT transaction has been revealed. This can also be checked on the Tron network.
It should be noted that the transaction is to be distinguished from another, which addresses a similar name. Indeed, it is not 65 million USDT from a private wallet that was transferred, but 65 million from the funds of the Tether company that were transferred.
What is Tether Treasury?
A short presentation is required to introduce what their cash is. Tether is a stablecoin so the price is pegged to the dollar, i.e. tied to $1.00. It is thus a blockchain-based cryptocurrency whose tokens in circulation are backed by an equivalent amount of US dollars. Traditional fiat currencies, such as the dollar, euro, or Japanese yen are tracked by stablecoins, which are kept in a designated bank account.
Now that the context behind USDT is set, that brings us to the question of what is Tether cash. As a company, the Tether company has a treasury, which fulfills a role similar to that of a traditional company. The difference is that a typical business has cash in fiat currency, while Tether’s cash is in digital currency, or in other words, tether (USDT).
The many controversies around the currency
The most pressing concern about Tether right now is what is actually supporting USDT. Known as Realcoin in 2014, the company’s concept was that its currency would be backed by the US dollar. “Each tether is still backed 1 to 1, by conventional money stored in our reserves”his website said at one point.
Thus, it was stated in 2019:
“Each Tether is always 100% backed by our reserves, which include traditional currencies and cash equivalents and, from time to time, may include other assets and claims from loans made by Tether to third parties, which may include Affiliated Entities (collectively, ‘Reserves’)”.
Tether formed a collaboration with crypto exchange Bitfinex in 2014. The Paradise Papers discharge in 2017 revealed that Bitfinex and Tether are, incidentally, controlled by the same people.
$1 billion was transferred from Tether to Binance
The amount we mention, 65 million dollars, may seem enormous, but it is nothing compared to a gigantic transaction of a billion dollars, which took place at the end of last month.
This transaction this time has an explanation provided by Tether:
“In a few minutes, Tether will coordinate with a third party to perform a chain swap, converting Tron TRC20 to Ethereum ERC20, for 2B USDT. Tether’s total supply will not change during this process.”
Tether
In other words, Tether only deployed coins from Tron to Ethereum, sending them to Binance.
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