Tether Destroys the Largest Number of Tokens to Date

With investors losing confidence in the crypto market and stablecoins, the company lost over $16 billion in market cap in the past two months. It is now trying to fix the situation by auditing its reserves and burning USDT.

On June 20, USDT’s CTO Paolo Ardoino told Euromoney that Tether is gearing up for an audit with a top 12 auditing firm called MHA firm. Ardoino noted that the firm will gauge the assets on a quarterly basis. 

Commenting on why Tether did not opt for one of the Big Four auditing companies, Ardoino said:

I think it’s one of the top 12, so not that bad. The big four are a bit more cautious about providing a full audit when the rules are not clear.

He added that transparency is a must:

You cannot have a guy establish new cryptocurrencies in the early hours and call it a stablecoin because it is backed by another currency and kindness.

The company has promised to provide any information the regulators might need, with Tether already sharing the data about its reserves over the last two years.

Subsequently, Tether also revealed that it is burning $11.1 billion of USDT – 6.6 billion tokens on the TRC-20 network as well as 4.5 billion tokens on the ERC-20 network – as a result of the past-period redemptions. 

FYI: Tether is burning the tokens sitting in the treasury wallets, resulted from past period redemptions. Tokens in the treasury wallet are not to be considered issued and they are burned periodically. Current burns: – 6.6B on TRC20 – 4.5B on ERC20.

he tweeted.

Although this is not the first time Tether burns USDT, it is the largest number so far. The company is doing it to adjust the supply of coins to user demand. In May, it burned a total of 3 billion USDT tokens in an account known as Tether Treasury in two consecutive burns.