Tether the company burned 500 million of its tether (USDT) dollar-pegged stablecoins Wednesday, it announced via Twitter.

In its announcement Wednesday, Tether said it had not burned all its USDT; around 466 million remain in its treasury “as a preparatory measure for future USDT issuances.” Much of those burned tethers had been transferred to a treasury wallet from an account controlled by Bitfinex, which CoinDesk describes as “a cryptocurrency exchange that overlaps with Tether in terms of ownership and management.”

Kasper Rasmussen, director of communications at Bitfinex, told CoinDesk the burning “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, or in this case burned, “when the amount circulating exceeds the amount required for e.g. Bitfinex or Tether to operate,” Rasmussen said.

Other exchanges are switching to other dollar-backed stablecoins because of perceived problems with tether. Read more here.

ThirtyK Staff
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