Tether (USDT), the US dollar-backed cryptocurrency company on the 24th of October announced that it had burned 500 million tokens. Preceding this they held these tokens in their company controlled wallet called the tether treasury.
And now over 600 million tether tokens are out of the market.
This happened after the first time in 2018 when the tether token slipped below $ 1.
After the token got burnt, over 2 billion dollars has dropped from the total market capitalization.
They did burn the 500 million tokens to redeem its slip below $1 and to trim down too much supply that was beating the demand.
They described this process of burning these 500 million tokens as redemption.
In this redemption process, the remaining tether tokens left in the ‘tether treasury is over 466 million USDT.
There is speculation that the transfer was done from Bitfinex, one of the biggest exchangers in the crypto space’s company controlled wallet.
The reason for burning the token from Bitfinex address was that Bitfinex is one of tether’s main customers and so they coincide partially with management and ownership of tether.
They referred this burn as redemption, redemption here means the amount of tether in circulation beats the demand and so destroying a reasonable amount to stabilize too much supply beating the demand will sustain the price without further slip.
They made this transfer (burn) visible to be seen on the tether blockchain ‘The OMNI blockchain explorer ‘
Check it out;