Here Is How Tether Plans To Support USDT Peg!

Tether

Today, on the 12th of May Tether stated that the firm is planning to coordinate with a third party in order to perform a chain swap so that it can raise more than $ 1 billion USDT while maintaining total supply.

For each exchange, Tether plans to use Tron TRC20r. The move came as USDT fell to 0.95, destabilizing the dollar peg.

Immediately after Tether, Tron founder Justin Sun said on Twitter that Tron DAO Reserve had increased its offering of USDC and TUSD on Tron by $ 400 million.

USDT PEG tether support with Tron

USDT price dropped significantly below $0.95 around 07:00 UTC as investors feared that USDT could suffer the same fate as UST, which lost its peg to the US Dollar.

As the news spread, investors are selling the USDT while flipping to other stable coins such as the USDC, BUSD, and DAI.

On the other hand, Tether’s response helped bring USDT back to a stable level. Currently, USDT is worth $0.98.

Meanwhile, Tether has converted Tron TRC20 to Ethereum ERC20 for $ 1 billion and Avalanche for $ 20 million. With this, the total supply of USDT is expected to stay the same during the swap and also increase Tron’s liquidity in the market.

At the same time, Tron DAO Reserve also took responsibility for reducing the volatility of the algorithmic stablecoin USDD by increasing the supply of USDC and TUSD by $400 million at Tron.

Currently, the USDD is valued at $ 0.98. The price drop of stablecoins below $1 is benefitting the traders due to FUD hovering over the crypto market

Popular analyst Michaël van de Poppe said that the USDT peg is about to restore its peg. He urges people not to compare USDT to UST as the two are completely different.

Conclusion!

In the midst of the declining confidence among traders, the cryptocurrency market is under tremendous pressure. Meanwhile, the UST has lost its peg against the dollar while the USDT which is acting a bit volatile has raised new fears in the market. Over the past 24 hours, USDT trading volumes have grown by more than 50% alerting the Traders

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