The Tron blockchain loses another 500 million USDT after a chain swap with Ethereum
On August 10, Tether announced a chain swap of 500 million USDT from Tron to Ethereum. As usual, the total circulating supply of USDT will not change as this 500 million USDT will simply be transferred from one blockchain to another.
In few hours Tether will coordinate with a 3rd party to perform two chain swaps (conversion from Tron to ERC20 protocol) for 500M USDt. Tether total supply will not change during this process.
Learn more here about chain swaps https://t.co/abfgnELSvi
— Tether (@Tether_to) August 10, 2020
Specifically, Tether will coordinate with a third party to perform two chain swaps (converting from Tron to ERC20 protocol) for 500 million USDT.
Tether announced support for the Tron blockchain and its TRC-20 technical standard in May 2019. The new version quickly gained traction, securing 12% of Tether’s total circulating supply over five months.
Tron’s CEO, Justin Sun, has predicted that the Tron-based USDT will eventually become the dominant cryptocurrency with legal value. In May, Tron became the second-largest stablecoin, and the Tether-minted TRC-20 token became the second-largest stablecoin, surpassing the USDT issued initially on the Bitcoin-based Omni Layer Protocol, being ignored due to slow and costly transactions.
According to Tron’s transparency page, Tron still accounts for 32.91% of USDT’s $ 11.86 billion supply.
Paolo Ardoino, CEO of the stablecoin issuer and crypto exchange Bitfinex, did not specify the exact reason behind the swap, but it appears that Tether is slowly ignoring Tron.
Tron’s CEO, Justin Sun, who regularly posts new milestones for the TRC-20 version of Tether, has also been silent on the matter. He ran his dollar-backed stablecoin JUST IEO back in May.
— Justin Sun (@justinsuntron) May 5, 2020
Given that another 300 million USDT based on Tron was moved to Ethereum last month, the most recent swap is by no means small.
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