A $1 billion chain transfer to convert USDT from theĀ Solana blockchain to the Ethereum blockchain was just announced by stablecoin issuer Tether. During this process, Tether noted that there wonāt be any change in the total supply of the number of tokens.
Tetherās Chain Swap Events
The announcement comes as Solana, which was among the top 5 cryptocurrencies by market cap only a few weeks ago, is having problems due to the failure of cryptocurrency exchangeĀ FTX.
Transferring cryptocurrency from one blockchain to another is referred to as a āchain swapā. Whenever demand for using its stablecoins shifted from one blockchain to another,Ā TetherĀ performed this process many a time in the past. For instance, in mid-2020, Tether swapped $1 billion in USDT from Tron to Ethereum twice.
Solanaās Exposure To FTX Proves Fatal
The collapse of FTX andĀ Alameda ResearchĀ has been especially brutal on the blockchain and its native SOL token, and for good reason: the now-bankrupt Alameda was SOLās single-largest investor and its former CEO Sam Bankman-Fried personally pitched it as an Ethereum alternative.
The Solana Foundation, a non-profit organization that supports the development of the Solana blockchain, also acknowledged having $1 million in cash or other equivalent assets that were trapped on FTX.
However, earlier, Solanaās co-founder vehemently denied to having large exposure on FTX or that the bankruptcy would have any catastrophic effect.