It seems that Tether is on its last legs. On Monday 15 Tether pulled another 250 million USDT out of circulation. This was noticed on Bitfinex crypto exchange when 50 million USDT and 200 million USDT payments were sent to the Tether’s treasury address.
During October, Tether took in a total of 560 million tokens out of circulation. In addition, since September 21, they didn’t issue any additional USDT tokens.
Pull Me Once, Shame on You. Pull Me Twice, Shame on Me.
So, when had Tether pulling adventure started? The starting point, at least in 2018, was in January. Then, Tether issued a new batch of $850 million worth of tokens. This, of course as expected, without proper and documented backing. However, in the first and second week of October, Tether LLC took 300 million USDT off the market and placed it on a treasury address. All this happened just a few days after USDT lost its dollar peg.
The first wave occurred on October 3, when 10 million USDT left the market. Another 100 million USDT tokens followed on the October 9. The third and the biggest wave happened on October 14. At that occasion, Bitfinex exchange sent another 200 million tokens to the Tether’s Omni wallet address.
Tether still has to publish around 480 million USDT until the end of 2018. However, there is no information when this will occur. The interesting thing is that the amount of pulled tokens in the Omni wallet is close to the amount planned for issuing.
The Rise and Fall of Tether
Currently, Tether market cap is around 2.5 billion tokens. Compared to the all-time high of almost 2.9 billion, Tether had a huge decline of nearly 25 percent in just a couple of months.
On Monday 15, Tether token lost the peg to the dollar. USDT average trade was $0.92. Until the end of the day, price slightly rose to $0.98. The lowest price was recorded on Kraken exchange, where USDT hit the low bottom at $0.85.
As it seems, this October is one of the worst months for Tether. On October 11, Bitfinex, Tether’s sister company, announced that it had suspended all fiat deposits. One of the possible reasons was a banking issue. Puerto Rico’s Noble Bank International, Bitfinex and Tether’s partner bank, was declared insolvent on October 1. Since then, Bitfinex and Tether have been looking for a new partner. According to the latest reports, Bitfinex switched its business to the well-known HSBC bank.
Will this be the light at the end of the tunnel for twin sisters?