Tether Announces 11.1 Billion USDT Burn

Tether burn 11.1 miliar USDT. (Coinscribble)

JAKARTA – Stablecoin issuer, Tether, announced the burning of USDT stablecoin worth 11.1 billion tokens. This information was conveyed by Tether's CTO Paolo Ardoino recently.

Ardoino stated that Tether has burned 6.6 billion on the TRC-20 network and 4.5 billion tokens on the ERC-20 network. He made the announcement via his official Twitter account @paoloardoino on June 20 yesterday.

Burning is the process of permanently removing tokens from circulation. Crypto developers usually do this process to reduce the supply of tokens circulating in the market.

This token burning is not the first time Tether has done this. However this is a larger amount of token burning than ever before. The USDT price is pegged to a stable asset, namely the US dollar fiat currency.

For your information, the USDT stablecoin is non-minable and not as decentralized as other cryptocurrencies. The burning is intended to adjust supply to user demand.

Previously, in early May, Tether burned a total of 3 billion USDT tokens in the account known as Tether Treasury in two consecutive burns, 2 billion and 1 billion USDT.

The arson was triggered by the appearance of negative information about Tether some time ago. Hence investors lost faith in USDT and started switching to another stablecoin, USDC.