For many, stablecoins seem to be the safest alternatives within the world of cryptomontages. Within the list of the most popular ones we will usually find Tether (USDT). But before investing your money in this crypt currency you should know: Tether has frozen $5.5 million USDT this year alone.
Stablecoins were initially used primarily as a cryptographic safe haven asset to avoid capital loss. But, as the market grows, these currencies are now used in DeFi, as a wealth reserve or to move a stable Bitcoin Trader equivalent quickly and at low cost.
Tether: USDT supply increases greatly, but not in all Blockchains
Analyzing Tether and how he froze these USDT assets
As a stablecoin, Tether is in considerable demand and its market capitalization has grown recently. It has even been placed in the top 3 of cryptosystems, surpassing Ripple’s XRP.
This increase in demand promoted by the Fed’s stimulus in the United States has also been offset by new supply from Tether, the parent company of USDT.
Thus, Tether’s market capitalization exceeds USD 9 billion and continues to grow. Other stablecoins are also growing rapidly in supply due to demand.
Now, while it is true that Tether has earned a good place in the crypto and stablecoin industry, and that it is one of the most demanded, this does not mean that the controversy has abandoned this crypto currency.
Where did this information come from?
According to Eric Wall, CIO of Arcane Assets, a total of $5.5 million USDT has been frozen for 2020. That amount was distributed in 22 separate Tether accounts at Ethereum. Four accounts had the most USDT frozen.
All of this information was released by Wall mainly on his Twitter account, through a fairly detailed thread of how he became aware of this event. But, to put it simply, what he did was use Etherscan, scanned the Ethereum Blockchain and found the frozen USDT.
What happens is, Tether apparently has the power to freeze these assets in many of these protocols. Wall said that most of the frozen funds were done as a precaution, potentially associated with a Ponzi scheme or to protect users from errors.
In total over the years, more than $46 million in USDT has been frozen by Tether.