Binance is moving 3 billion USDT from the Tron network to the Ethereum network with the support of Tether.
A “chain swap” involving the transfer of 3 billion USDT from the Tron network to the Ethereum network has been announced by cryptocurrency exchange Binance, and Tether has said that it would be providing assistance.
“Tether and Binance are coordinating a chain switch from Tron to Ethereum ERC20 for 3B USDT in the next few minutes. During this procedure, the overall supply of tethers will not alter “What Tether had to say.
Tether will move its tokens from the Tron blockchain to the Ethereum blockchain in this instance.
In order to ease trading activities on cryptocurrency exchanges like Binance, Tether has launched a token, denominated in USDT, on the Ethereum, Tron, and other blockchain networks.
According to Tether’s Chief Technology Officer Paolo Ardoino is part of Binance’s plan to redistribute its USDT assets from its Tron cold wallets to Ethereum.
Since Ardoino speculates that “likely Binance holds largely USDT-on-Tron in its cold wallets,” Binance may choose to rebalance its cold wallet by transferring some of its Tether holdings to Ethereum.
The swap occurs when Binance witnesses a wave of user withdrawals of substantial quantities of assets. Estimates from Simon Cousaert, director of statistics at The Block, suggest that over $2 billion worth of cryptocurrencies have left Binance just yesterday.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.