Following recent developments in the sphere of stablecoins, Tether (USDT) has announced that it’s coordinating a chain swap to transfer USDT assets from Tron’s TRC-20 to Ethereum and Avalanche’s blockchain. 

In a tweet, Tether said that 1 billion USDT will be moved from Tron’s blockchain to Ethereum. On the other hand, an additional 20 million USDT will be converted to Avalanche. According to Tether, this will not change the total supply of the stablecoin.

The announcement came amid fears of a stablecoin meltdown after the recent TerraUSD (UST) and Terra (LUNA) debacle. Apart from this, USDT also showed price fluctuations, slipping below $0.99 on many exchange platforms on Thursday. As a result, many expressed concerns over the most-traded stablecoin showing signs of struggle.

However, in a Cointelegraph interview, Tether’s chief technology officer Paolo Ardoino assured traders that USDT is not like algorithmic stablecoins such as UST. Ardoino said that Tether has a “strong, conservative and liquid portfolio that consists of cash and cash equivalents.” This includes treasury bills, money market funds and commercial paper holdings.

Ardoino also pointed out that the ongoing fear, uncertainty or doubt, or FUD, surrounding stablecoins is becoming a money-making stream for some…


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