Tether, the largest stablecoin in circulation, is planning to swap 750 million tether-tron token pairs for tether-ether. The goal of this swap is to ensure the stability of the stablecoin’s liquidity and maintain its peg of 1:1 with the US dollar.
Binance’s Strategic Move amid Regulatory Scrutiny
Cryptocurrency exchange Binance announced this swap via a tweet on Monday. The exchange is currently facing increased regulatory scrutiny, which has had negative effects on its operations. Binance is currently engaged in a legal battle with the US Securities and Exchange Commission (SEC), making it necessary for the company to take measures to mitigate the fallout from these challenges.
Token Swap Details
According to the tweet, the token swap process will begin after 12pm (5:30pm IST) UTC on Monday. The swap will be conducted directly with the tether team. Tron, ranked as the ninth largest cryptocurrency with a market value of $6.3 billion, and ether, the second largest cryptocurrency after bitcoin with a market capitalization of $210 billion, will be involved in this token swap.
SEC Lawsuit Against Binance
The SEC recently filed a lawsuit against Binance, its CEO Changpeng Zhao, and Binance.US. The charges include allegations of deceptive practices, manipulation of trading volumes, diversion of customer funds, and concealment of control over the US entity. As a result, the SEC requested a court order to freeze Binance’s assets, leading to the suspension of dollar withdrawal channels by Binance from as early as June 13.
Impact on Other Platforms
Following the SEC’s identification of certain cryptocurrencies as securities in the lawsuit against Binance, trading platform Robinhood Markets decided to remove three such tokens from its platform. Furthermore, the Tron Foundation and its founder Justin Sun were previously charged with fraud by the SEC in March, leading the US arm of Binance to delist the digital asset token tron from its trading platform.
Disclaimer and Investment Risks
Readers should exercise caution when dealing with cryptocurrencies, as they are unregulated and can be highly risky. There may be no regulatory recourse for any losses incurred from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. It is advisable to seek expert advice, read offer documents, and carefully consider related literature before making any investment. Cryptocurrency market predictions are speculative, and any investments made are at the sole cost and risk of the readers.
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