Through a tweet, Tether’s CTO, Paolo Ardoino, has denied the rumour of a capitalization increase of 500 million Tether (USDT), inviting Coindesk to verify in detail the information and data before writing an article.
— Paolo Ardoino (@paoloardoino) January 7, 2020
In fact, according to an article published by Coindesk, Tether had increased its capitalization by 500 million in 5 minutes and that the cause of this phenomenon was related to the recent increase in the price of bitcoin. Whoever had written the article had taken into consideration the data from CoinMarketCap, turning the two events into cause and effect.
Unfortunately for the newspaper, the truth looks very different from how it was told and obviously Tether (USDT) has nothing to do with the recent bitcoin price increase. We will now also see why.
Tether and Bitcoin: an inseparable relation?
As it is known, the Tether (USDT) stablecoin is very versatile and over time has made several improvements to achieve support for different blockchains, ranging from Omni to that of EOS, TRON and others.
Obviously, as it is present on different blockchains, there are different versions of Tether, each one following the standard of the blockchain it is based on and, given that there is currently no direct interoperability between the various blockchains, it is impossible to move Tether from one blockchain to another without first converting them.
This means that, for each blockchain, different versions of Tether have to be created according to market demand.
As can be seen from the official Tether data, even if the total supply is scattered across several blockchains, these must be added together to obtain the total number of USDT actually in circulation.
And this is where CoinMarketCap made a mistake, as it didn’t add the data of the TRON (TRX) blockchain. For this reason, upon detecting the problem, the platform had updated the data with TRON’s 500 million Tether.