It is currently unknown what has caused the token burn, although many believe that it was a result of the recent controversy. After the value of USDT dropped below $1 — which should not happen, since each coin is backed by this exact amount of USD — many started doubting if Tether can truly back all of its coins.
As a result of these transfers, a large amount of Tether’s circulating supply was removed from the market. The removal was made permanent due to the company’s USDT redemption. In their statement they claim that Tether has redeemed a large number of tokens which will be burned, leaving around 466 million coins in circulation. Such a process is outlined in Tether’s whitepaper, with redemptions and issuances transparent, which can be observed on Tether’s treasury balance.Tether Burns Half a Billion USDT Coins in an Act of Redemption
Just watching a reporting of ‘whale’ crytocurrency transactions, and noticing that Tether is ‘burning’ BILLIONS in USDT, just in a few minutes.