A $1 billion Tether Swap occurred on August 20, involving Binance, Bitfinex and a massive TRON blockchain movement, reports CoinTelegraph.
The Tether blockchain is one of the most well-documented active blockchains. Crypto enthusiasts can easily find Tweetbots that report each and every time Tether (USDT) gets issued or burned.
Latching onto Binance
With a major six-transaction swap initiated by Binance, Binance and Bitfinex executed a $1 billion Tether swap. Binance was able to trade its $1 billion TRON-based USDT coins for the equivalent Ethereum-based USDT coins. The event was possible due to a high level of trust between both organizations.
Image courtesy of Flipside Crypto
Too much trust?
As with any transaction involving multiple centralized exchanges, the high degree of trust between Binance and Bitfinex may be somewhat curious. Tether, itself, has not been very forthright with this whole affair. The question users might ask are: what mechanisms were in place during the six transactions and what kind of trusted relationship exists between both companies?