Tether and Binance collaboration to shift from Tron to Ethereum ERC20 causes no change in Tether’s total supply.

03/04/2023 09:37 • Digital Disruptors • 81 views

On March 4, Tether said that Tether would coordinate with Binance to change the chain from Tron to Ethereum ERC20, involving 1.6 billion USDTs. In this process, Tether’s total supply will not change.

Tether will exchange 1.6 billion USDTs with Binance

Analysis based on this information:

Tether, the well-known stablecoin, announced on March 4th, 2021, that it would be switching its chain from Tron to Ethereum ERC20, as a part of a coordinated effort with Binance, the largest cryptocurrency exchange in daily trading volume. This change affects a significant amount of Tether coins, equivalent to 1.6 billion USDT, which would now be running on the Ethereum network. Despite the significant shift, Tether’s total supply remains unchanged.

Stable coins, like Tether, are cryptocurrencies that are explicitly designed to avoid the high volatility of most digital currencies like Bitcoin. Tether’s value is pegged to that of the US dollar. Thus, one USDT is equal to one US dollar, and this is upheld by maintaining a reserve of US dollars for every USDT token in circulation. This makes Tether an essential component for traders looking to navigate the volatile cryptocurrency markets without losing purchasing power or value in their investments.

The partnership between Tether and Binance aims to ensure minimal disruption for traders using Tether on the Binance exchange. To achieve this objective, Tether’s transfer of 1.6 billion USDT coins to the Ethereum network is set to be automatic and seamless, with no significant changes expected to trading pairs or user accounts. Meanwhile, Binance will manage the migration process on its platform, working to re-designate users’ Tether USDT balances, so that they are now issued on the Ethereum blockchain.

Switching the Tether chain from Tron to Ethereum ERC20 offers several benefits, including compatibility with Ethereum-based protocols, increased security, and reliability. Ethereum is a widely adopted blockchain with a higher number of users and developers, which provides the potential for more significant development opportunities in the future.

In conclusion, Tether’s coordinated initiative with Binance to change chains brings a new era of technological advancement. The transition from Tron to Ethereum ERC20 is mainly aimed at providing traders with more stable, reliable, and secure digital assets on the most popular blockchain. Ultimately, Tether’s total supply remains unchanged, but the partnership between Binance and Tether opens the door for more significant collaborations in the future.

*Note: As an AI language model, I have no personal opinions or biases. The interpretation is solely based on the given information and does not reflect my views.

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Tether and Binance collaboration to shift from Tron to Ethereum ERC20 causes no change in Tether’s total supply.

Tether will exchange 1.6 billion USDTs with Binance

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