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Tether explains why it didn’t burn a USDT

May 29, 2020

Tether (USDT) cites the popularity of its Ethereum (ETH) based asset as the reason the company has never had to burn a token.

The recently published Flipside Crypto report concluded that Tether does not burn its Ethereum tokens:

“We can also see that no token falls into the ‘burned’ category, which means that no USDT supply was destroyed during April. If we look at the full USDT history on Ethereum, we find that none Token was burned. “

Ethereum is very popular

Tether explains why it didn’t burn a USDTTether explains why it didn’t burn a USDT

Paolo Ardoino, CTO (Chief Technology Officer) of Tether and Bitfinex, replied to a Cointelgraph requestHe explained that the company burns its tokens on the Omni and Tron (TRON) networks, while authorized but unspent and unsupported ERC20 tokens remain in “inventory”:

“We have not yet destroyed USDT based on Ethereum, so far we have destroyed unnecessary USDT in Omni and TronEthereum has been the most popular blockchain in recent months, and the demand for ERC20-based USDT has been high When refunds were processed, Tether kept these USDTs in its authorized but unissued inventoryand without support for future market demand. “

Tether assets

Tether assets, source: Tether.

Ardoino’s statement apparently reflects Cointelegraph’s initial conclusionHowever, it might be better for the company to burn and issue new tokens, which could help alleviate the prevailing skepticism about its reserve policy.