A recent announcement by Tether seems to spark some confusion. The company is removing $300 million of USDT from TRON and moving it to Ethereum.
In theory, it is not that strange of a move.
A Somewhat Suspicious Move by Tether
Tether has been issuing USDT tokens across multiple blockchains, including that of Ethereum and TRON.
However, there is no reason to move value from one chain to another by definition.
They can simply “burn” tokens on one chain and mint them again on the other.
That is how such a process would be completed under normal circumstances.
Even so, Tether decided to announce how it would swap value across chains with the help of a third party.
That latter part is what has a lot of people concerned.
It is equally possible that Tether is exploring potential atomic swaps between its own supported blockchains.
A massive swap of $300 million can also hint at one of the company’s clients accidentally receiving funds on the wrong chain.
Such an event can be resolved quicker through other means, however.
There is some speculation as to how Tether might be leaving TRON behind as a network.
So far, that seems rather unlikely, as nothing has been officially confirmed.