In the official Tether post, the publisher of USDT stablecoin, he said he "bought a large number of" tokens in circulation, and that he would destroy 500 million USDT from the Tether treasury.
According to the company, this will leave $ 446 million in the company's vault, in preparation for future USDT issues - which means that those purchased and burnt tokens account for 52.8 percent of the total previous supply. The Tether announcement requires the public to read the "conceptual" outlines of the issue process and buy a token, as described in his white paper, where the company states that: any tether emitted or purchased, as recorded on the public Bitcoin Blockchain, will correspond to the payment or withdrawal of funds from the [company's] bank account. As the White Paper points out, for the cryptographic side of accounting processes, the transparent nature of the Bitcoin public chain - on which Tether tokens are issued by the Omni Layer protocol - ensures that tokens transactions can be verified and tracked. Omni Explorer further indicates that the current Tether token reserves are 466,678,763.48.
Today's buy-out and destruction on a large scale caused a heated discussion on Twitter, especially since Tether recently - if only for a moment - lost anchoring in the US dollar. It was worth $ 0.91, which led some to accuse the company of manipulating the market through redemption at low cost and liquidation after rebounding the market. Others suggest that the company is unable to support tokens with adequate reserves, which refers to both the troublesome history of Tether in terms of transparency and the prolonged bear market.
Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market is still trading inside of the consolidation zone, but the bearish pressure is starting to grow slowly. The price has tested the technical support again this night, but so far bounced from the level of $6,322. Any violation of this level will immediately open the road towards the level of $6,310 and $6,287. Below those two supports, there is only one more important support at the level of $6,110, so the breakout lower might have important repercussions. Please notice the volatility is limited for now, but the outburst can occur any time now.
