The pattern of issuance and burning of tokens by Tether has attracted the attention of the cryptocurrency community, particularly in light of major banking sector events earlier this year. Tether’s minting activities have been robust, with significant issuances recorded on October 19 and November 3, each adding another 1 billion USDT on Tron to the ecosystem.
While increasing its token supply, Tether has also engaged in token burning to adjust its circulation. Notable reductions in the supply occurred in February with a burn of 2 billion Ethereum USDT, in June with 3.1 billion Tron USDT being destroyed, and on August 22 when another 1.2 billion Tron USDT were burned.
These financial maneuvers by Tether have not gone unnoticed, with observers drawing connections between Tether’s activities and the collapse of Silicon Valley Bank and Signature Bank (OTC:SBNY) in March 2023. Despite these speculations and scrutiny regarding alleged links to these banks that ceased operations, Tether has denied such claims and emphasized its dedication to regulatory compliance.
Looking ahead to 2024, Tether has announced plans for transformative projects aimed at advancing the Web2 industry and introducing a real-time proof-of-reserves feature. This initiative is expected to enhance transparency for USDT holders by providing up-to-date information on the reserves backing the stablecoin.
Ardoino’s remarks regarding these strategic moves were shared via Social Media Platform X, where he clarified that minted tokens are “authorized but not issued.” This distinction is crucial for understanding Tether’s approach to managing its digital currency supply amidst a dynamic cryptocurrency landscape.
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Source: Cryptocurrency - investing.com
