While many feel that Tether (USDT) is doing nothing, there are a lot of swaps happening.
Tether tweeted: “Tomorrow Tether will coordinate with a 3rd party to perform two chain swaps (conversion from Tron to ERC20 protocol) for 1B USDT. Tether total supply will not change during this process.”
A chain swap is a very common happening in the process of moving cryptocurrencies from one blockchain to another. This permits traders to gain access to different kinds of block chains which support the cryptocurrency which they might be holding. Thus, making it possible for the use of the digital assets which they might have on other supporting blockchains.
For example, Tether (USDT) is on the Omni, Ethereum, Tron, EOSIO and Liquid blockchains. Clients will be able to get access to the 5 blockchains if they hold USDT. Traders will be able to “swap” the USDt from the blockchain on which they are operating from to another supporting blockchain, for example the Ethereum to Omni.
Sometimes a token burn happens after a swap. Sometimes the chain swap funds exceed the amount of USDT in the treasury wallets on the destination blockchain. When this happens, it becomes important to mint additional USDT and transfer the tokens to the destination blockchain. When this is completed, the same amount of token on the initial blockchain is burnt. Otherwise, these additional tokens are retained in the treasury wallet on the initial blockchain to help with future swaps with the clients.
Sydney Ifergan, the crypto expert tweeted: “Tether (USDT) doing recovery of USDT ERC20 stuck in addresses. Nice!”
On September 08, 2020, Paolo Ardoino previously tweeted: “Please open a ticket to @Tether_to support service https://app.tether.to If it’s USDt ERC20 stuck in an address we should be able to recover it, but in order to be sure, please contact our customer support and we’ll try our best.”
On September 11, 2020, Paolo Ardoino tweeted: “Use #DeFi projects at your own risk but if you do, at least make sure to use @Tether_to $USDt. 1M $USDt recovered and returned to the legitimate owner(s).”
Several users were excited and they were asking if similar recovery features are available on Liquid BTC. However, yet another user opined that he does not think that it is a feature and that it is more like a proof of burn to issuer. And stated, anyone issuing their asset on liquid will be able to determine their own policies.
There are others who feel that the recovery is a great news and that this is a great marketing point for “Reputable financial houses” on the safety of using Tether.
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
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