Not too long ago, Tether announced that it would conduct a token swap between different blockchains. A new swap of this kind has been announced, with another $200 million USDT involved.
It is not too common to see token swaps for hundreds of millions of dollars.
Tether Conducts Another Chain Swap
In the case of Tether, that situation appears to be changing quite rapidly.
A few weeks ago, the company switched USDT from ERC20 to the TRON blockchain.
This time around, the team is moving from Omni to Ethereum for $200 million in USDT.
As the supply of Tether will not change, there is nothing to be overly concerned about at this time.
Why these swaps are taking place, remains somewhat of a mystery.
By being active on a total of five different blockchains, it is only normal to see demand on one chain spike compared to others.
It is possible to move smaller amounts of funds between chains on exchanges, but for bigger swaps, this process appears necessary.
These requests may also be initiated by the various exchanges supporting USDT as well.
Some transparency regarding these ongoing chain swaps is more than appreciated, for obvious reasons.
It seems unlikely that this swap will help the cryptocurrency markets recover in the near future.