Tether CTO cites the popularity of its ERC20 tokens as the reason why the company never burns them, but stores them in their 'inventory'.
Listen to article Tether cites the popularity of its Ethereum-based asset as the reason why the company has never burned a single token.
"We can also see that no tokens ever go to the"burn" category, which means that throughout the course of April no USDT supply was destroyed.
Looking at the full history of USDT on Ethereum, we found that no tokens have ever been burned.
"We have not yet destroyed Ethereum-based USDt. We have destroyed unneeded USDt on Omni and Tron so far. Ethereum has been the most popular blockchain in recent months and demand for ERC20-based USDt has been high. Accordingly, when redemptions have been processed, Tether retained those USDts in its authorized but unissued - and unbacked - inventory for future market demand."
The explanation provided by Ardoino seemingly mirrors Cointelegraph's initial conclusion.
Perhaps, the company would be better off burning and issuing new tokens, which may help it alleviate the prevailing skepticism about its reserve policies.
Tether Explains Why It Hasn't Burned Any USDT
Published on May 28, 2020
by Cointele | Published on Coinage
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