Tether Mints 5 Billion USDT Tokens on TRON Network Due to Decimal Mistake
The minting was part of the intended TRON-based incentive program for USDT holders.
A rather shocking transaction that created 5 billion Tether (USDT) turned out to be an error, though it still shook the market. The intention of Tether, Inc. was to create an additional 50 million tokens to transfer to the TRON network.
Subsequently, the extra USDT was burned, while blaming the error on the TRON network and problems with decimal numbers. The total supply on the TRON network remains around 87.9 million.
USDT tokens have been moving to the TRON network, with the intention to offer a faster, cheaper way to transfer stablecoins. The issuance of new USDT will also arrive with an incentive program starting this Monday.
The incentive program for TRON-based USDT owners was attempted once back in May. However, problems with the stability of USDT, and the news that each token was not backed 100% by fiat, delayed the unrolling of new coins. For months, the TRON network only carried around 37 million USDT, a small part of the total supply, which now exceeds 3.91 billion tokens.
The TRON-USDT incentive plan got revamped, with a value equivalent to $30 million:
Tether has also stated its intention to migrate some of the USDT to the Ethereum network, where already 1.4 billion tokens have been created. The migration will be partially supported by Binance, which is now moving its USDT balances into Ethereum-based wallets, after phasing out its Omni Bitcoin-based wallets. All users will only be able to withdraw Ethereum-based USDT, in essence going through a token swap.
USDT tokens make up more than 97.5% of all stablecoin trading, and cover 65% of the Bitcoin (BTC) market. More than 48.8% of all TRX trading is also against USDT, and the addition of the TRON-based token may further boost liquidity.
Despite the news of potentially higher liquidity, TRX continued to slide, losing 6% after a sell-off during the weekend, to trade around $0.026.