It took a lot of trust to handle the switch process.
On August 20, a $ 1 billion „exchange process“ for the popular stablecoin Tether (USDT) took place
The crypto exchanges Binance and Bitfinex were involved in this process, with the blockchain project TRON ( TRX ) losing out.
At regular intervals , a certain amount of tether is „burned“ on one blockchain in order to be recreated on another blockchain. Although this „switching process“ sounds simple, it is complicated to carry out and requires a lot of trust.
So now when the big crypto exchange Binance decided to convert 1 billion US dollars of tether stored on the trading platform from the TRC-20 form to the ERC-20.
Binance wanted fewer tethers based on the TRON blockchain and, in return, more tethers based on the Ethereum blockchain. For this reason, the crypto exchange had decided to make the said change.
For this purpose, the switching process was carried out, which comprised six transactions and took just under an hour. For Tether / Bitfinex there was no risk at any time, as Binance was the initiator. In the meantime, however, the crypto exchange was 400 million or 600 million US dollars in the red, which makes it clear that there is indeed a need for great trust between all actors involved.
It is unclear whether the „exchanged“ tether are the crypto exchange’s own assets or stored user funds. At the time of going to press, neither Binance, Bitfinex nor Tether had responded to Cointelegraph’s requests. This article will be updated as soon as there is feedback.