On Tuesday morning, the circulating supply of Tether’s token dropped to roughly 2.7 billion from 2.8 billion. An obscure Reddit post may give some clues as to what happened. This marks the first serious drop in supply in since mid-July, when some 300 million tether were taken out of the market but by mid-August, around 400 million were added back. Each “tether” is allegedly backed by one dollar; thus the token trades at par with the U.S. dollar. The decrease in supply is increasing speculation that Tether is using Deltec Bank, based in The Bahamas, as the storage place for their U.S. dollar assets. Tether had been using Puerto Rico’s…
Fake Tethers under fake bitcoins. It's an illustration of what may be happening (Photo via Shutterstock).