Tether has declared today, August 21, 2020, a chain swop for 1,000,000,000 USD tokens from the TRON TRC20 token standard into ETH blockchain upon request by an anonymous crypto exchange.
Although, in-depth, investigations have not been carried out, but there are suspicions that Binance might be the exchange in question because in a recent time, it is seen to have transferred about 600,000,000 USD back to the Tether treasury on the TRON blockchain.
TRON Might Have Met Its Waterloo
Justin Sun, the founder of the crypto platform TRON has been the talk of the town over the recent lawsuit filed against centralized exchange Bitfinex seeking a huge sum of 16,000,000,000 USD.
According to a report, Binance is allegedly pointed as the brain behind the billion-dollar chain trade, the move which came as the aftermath of lower than expected TRON-related Tether trading on ETH.
The occurrence of the swap has made the flourishing DeFi market shove Ethereum and several other ERC20 tokens to a higher level, carting volume of funds away from the TRON platform as crypto merchants, quest for liftoffs and huge return on ETH.
The exchange has however adversely affected TRON due to how the ETH ERC20-based Tether supply increased to about 8.5,000,000,000 USD while Tether tokens reduced from 4.3 billion dollars to $3.3 billion.
During the recent crypto run-up, Tether has minted billions of extra USDT tokens, surging the supply from 10,000,000,000 USD in June to above 12.6 billion dollars, today, an aggregate of over 25% increase within 60 days.
Recently, Omise Go Network; present-day, The OMG Network launched Tether transactions as an ETH Layer two scaling solution in order to dispatch some traffic off the main Ethereum blockchain in a way to reduce transaction fees.
However, it is uncertain how the new influx of 1,000,000,000 USD Tethers will hinder the plan from being executed.
The swap might indicate the commencement of a wide interruption between ETH and its opponents as swift DeFi advancement speeds up acceptance.
