Due to human error, Tether accidentally printed out a $5 billion cryptocurrency linked to the law currency.
This error occurred during the Tether team's move of tokens from the Omni layer to the wavefield blockchain. It should have been a $50 million transfer, because someone put the decimal point in the wrong place and turned out to be $5 billion.
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Tether inadvertently created 5 billion tokens
The cryptocurrency exchange Poloniex clarified that the problem occurred after it requested Tether to assist in the exchange of tokens.
"This happened when Poloniex made a USDT chain swap with the help of Tether. The problem of accidentally generating an incorrect number of USDTs has been resolved."
Paolo Ardoino, chief technology officer at Bitfinex and Tether, said the team had immediately tackled the problem and destroyed them before the unexpected tokens affected the global cryptocurrency market.
The unexpected increase of $5 billion in USDT occurred at 6:00 am yesterday. Four minutes later, the Tether team quickly destroyed the US$500 million USDT and subsequently destroyed another $4.5 billion token, so it was not The market has caused too much impact.
Tether: The problem has occurred
Ardoino explained that cooperation with multiple blockchains is prone to some surprises. At present, USDT also issues stable coins on Omini, Ethereum, Wavefield and EOS. He said that they have already begun to solve such problems and prevent this from happening again, but it does not explain what measures it will take.
“Unfortunately, we need to run different toolchains on different blockchains, and problems sometimes occur. In any case, we are working hard to prevent this from happening again.”
Tether initially launched the USDT on Omni, which operates on the Bitcoin protocol.
However, Ethereum's ability to support smart contract-compatible tokens locally provides the versatility that Bitcoin cannot provide. EOS also combines smart contracts with low-cost, fast transactions.
Tether's controversy sometimes occurs
The accident was somewhat ironic, after all, the USDT parent company and its relationship with the cryptocurrency exchange Bitfinex were controversial.
Just a few months ago, Tether admitted that his token was not 100% supported by the dollar, but a basket of other assets.
In March of this year, Tether updated the official website information :
“Each USDT has 100% reserve support, including traditional currency and cash equivalents, and sometimes other assets and accounts receivable, these assets and accounts receivable (from Tether loans to third parties). Third parties may include affiliated entities (these assets are collectively referred to as “reserves”).”
However, Tether originally wrote in the USDT white paper:
“Every USDT is always 1:1 linked to our traditional currency, so 1 USDT is always equal to 1 USD.”
Critics say the statement once again weakens the creditworthiness of the USDT and has affected its position as a true stabilizer.