Tether (USDT) to engage third-party in chain swap from TRC20 to Ethereum and Avalanche
Tether (USDT) announced it is in the process of chain swapping through support from an (unnamed) third party after the price dropped to as low as $0.941 on Coinbase today. In this regard, however, you don’t need to worry about de-peg.
Tether (USDT) at $0.96; the transition from TRC20 to Ethereum, and Avalanche
The project was announced on Twitter as follows:
In few minutes Tether will coordinate with a 3rd party to perform a chain swap, converting from Tron TRC20 to Ethereum ERC20, for 1B USDt and from Tron TRC20 to Avalanche, for 20M USDt. The #tether total supply will not change during this process.
— Tether (@Tether_to) May 12, 2022
USDT came under increasing pressure today as the price plummeted below the $1 close. On Coinbase, Tether (USDT) fell as low as $0.941, losing its peg to the dollar. The USDT/USD pair is trading at $0.982 at press time, down 1.1%.
Reminder that tether is honouring USDt redemptions at 1$ via https://t.co/fB12xESSvB .
>300M redeemed in last 24h without a sweat drop.
— Paolo Ardoino (@paoloardoino) May 12, 2022
This drop comes even as Tether CTO Paolo Ardoino announced on Twitter that Tether continues to hold its peg at $1.
Traders have been selling off USDT in exchange for USD due to the uncertainty surrounding stablecoins and the crypto community’s prices. Waves stablecoin USDN showed obvious signs of weakness, sliding to $0.91 on Bittrex on May 9. TerraUSD (UST) has even dipped as low as $0.22.
The drop in USDT price below $1 has negatively affected the crypto market. But here’s why you shouldn’t worry about de-peg…
According to the official Tether website, its stablecoins are backed by physical cash or equivalents and short-term deposits. Only 6.3% of Tether’s backing is in digital assets marked as “other investments.”
But despite the stabilization zone’s diverse support, industry experts still have plenty of questions about “commercial papers,” which could be anything, including loans to small businesses. foreign developers, which is illegal in some jurisdictions.
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