USDT lost, then recovered
The story came from Crypto Twitter, as it often does. Last week, Chinese investors said they had made a mistake: 1 million USDT had been sent by mistake on a Swerve contract. Traders wanted them to be recovered, but there was nothing they could do on their end. Fortunately, Paolo Ardoino, CTO of Tether and Bitfinex, got wind of the news. He landed on his white steed to help traders:
“Please create a ticket with technical service. If these are ERC20 USDTs that are stuck on an address, we should be able to recover them. Contact our customer service and we’ll do our best. “
A few days later, Paolo Ardoino confirmed that the USDT could have been recovered, and returned to their legitimate owners. What he explained without failing to learn a lesson about the effectiveness of Tether:
“Use DeFi projects at your own risk. But if you do, at least be sure to use Tether USDT. “
👉 Read our guide: What is Tether (USDT) and how to buy it?
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Proof of the effectiveness of Tether … and of its centralization
If Tether was able to perform this retraction, is that it is a centralized project. The stablecoin had previously communicated on the matter over the summer, as the community questioned the frozen USDT addresses. Most of the time, addresses are frozen at the request of the authorities, Tether being particularly scrutinized by international market surveillance bodies.
Note that Tether can “freeze”, destroy or send tokens, but only on two blockchains: Ethereum and TRON. It is not, however, the only stablecoin to have these capacities: the USDC has also proceeded in the past to a freeze of its assets, this is also the case of TrueUSD. The reason is simple: since these stablecoins are backed by fiat currencies, they operate under stricter legal frameworks than “independent” cryptocurrencies.
The ability to cancel transactions is a bone of contention within the crypto community – it notably led to the creation of Ethereum as we know it today. No doubt that Tether’s detractors will therefore take the news as further proof of the excessive centralization of stablecoin… While others will welcome its flexibility.
👉 Also discover: The value of daily USDT transfers exceeds that of PayPal and Bitcoin
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About the Author : Marine Debelloir
Intrigued by Bitcoin for several years, I developed a passion for crypto-currencies and the innovative technologies that result from them. I like to unearth the most delicious information to share it with you and help democratize this fascinating universe. But I don’t stop there! I also like to analyze projects related to cryptos and blockchains, which fascinate me just as much.
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