Not long after doling out a slick brand new Mini Cooper, 2 Tesla motors, and sharing some portion of $20 million, TRON (TRX) has suspended the USDT-TRON rewards it embarked upon.
According to a release by the TRON Foundation, the recent news revolving around Bitfinex and Tether resulted in the suspension of the planned USDT rewards program.
However, the foundation promised to continue the reward programme the moment there are more information regarding the issue.
While the decision was not easy for TRON, according to Justin Sun, the creator of TRON and founder of TRON Foundation, the team is still keen on the right thing and the best for the network, and will look into the Bitfinex and Tether issue deeply to see which option is favourable to the TRON ecosystem.
“My team and I have been focused for months on bringing stability and liquidity to the TRON community,” Justin Sun said.
“TRON’s focus has always been to provide the best open protocol, infrastructure, and community so that all use cases including stable coins can build on top of TRON.”
Meanwhile, TRON will still continue technical support for USDT and the swap from Omni-based USDT to TRON-based USDT.
Bitfnex-Tether 74% Backed By Fiat
Bitfinex has disclosed that Tether USDT is now 74% backed by fiat as opposed to its earlier proclamation that the stablecoin is backed by one USD.
In an affidavit by the company on March 30, it was indicated that the stablecoin is backed by 74% of its fiat equivalent, causing uproar in the cryptocurrency.
The news confirming that Tether is not completely backed by fiat came after New York Attorney General alleged Bitfinex of involving in shady deals that contraveins the state’s law after it was reported that the exchange used Tether to cover up over $850 million losses.
However, Bitfinex who said the allegation is baseless, is now been rumoured to be planning an exchange token to cushion the effect of the loss.