$60 Million Worth of USDT Lasted Only 5 Days, Tether Mints Another $60M Today
- After minting $60 million worth of USDT on Feb. 19, Tether printed another $60 million USDT today
- Today, 10.5 million USDT were transferred from Tether Treasury to Binance, after last week’s report of running out of USDT
- Despite falling short of meeting margin trading services’ demand, Binance Futures increased the maximum cross collateral loan limit per account to 1 million USDT
Tether has minted yet another over $60 million worth of USDT today, reported Whale Alert.
On Monday, Feb. 24 at 10:51:32 UTC, 60 million USDT based on Ethereum worth $60,083,960 USD were minted at Tether Treasury.
In response to this, Paolo Ardoino, CTO of Tether and the sister company, cryptocurrency exchange Bitfinex said,
PSA: Inventory replenish.
Note this is a authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests.
Last one (made the 19th of Feb) lasted 5 days.
— Paolo Ardoino (@paoloardoino) February 24, 2020
On Feb. 19, Tether minted $60 million worth of USDT. At that time as well, Ardoino had said that the authorized transaction wasn’t issued yet and that the amount will be used as an inventory for next period issuance.
But as Ardoino himself said now, this inventory for later issuance only lasted for 5 days and Tether has minted yet another lot of $60 million.
A Spike Incoming?
Usually, whenever new USDT is minted, the market anticipates a price move. Previously, some incidents have even supported this pump expectation. Tether has also been accused of manipulating the Bitcoin prices but it denied any accusations.
When it comes to the latest USDT printing, on Feb. 18, the Bitcoin price went from $9,600 to above $10,200 and the next day on Feb. 19, the day USDT was printed, the exact opposite happened, BTC price dropped from nearly $10,300 to about $9,600.
Now, today, Bitcoin’s price has been trading at above $10,000 only to take a drop to $9,680 and is currently hovering around $9,800.
Providing Liquidity to Binance?
What’s more worth noting this time is just a couple of days before Tether minted new USDT, leading cryptocurrency exchange Binance ran out of USDT and was unable to meet the demand of its margin trading services.
The long positions of traders were rejected due to the exchange not having enough USDT to back up the loans. A day after this, $5 million of USDT was moved from Tether Treasury to Binance.
A moment of sobriety
Bitcoin dominance is approaching key support and we are seeing USDT loans running out on Binance.
I give this maybe a couple more days but I would recommend at least moving up stops or locking in some profit.
Keep killing it guys 🤜🤛
— Jacob Canfield (@JacobCanfield) February 12, 2020
Today, as well, 5,500,000 USDT (5,475,122 USD) and 5,000,000 USDT (5,031,554 USD) were transferred from Tether Treasury to Binance.
Interestingly, despite all this, Binance Futures increased the maximum cross collateral loan limit per account or a whopping 1 million USDT. Binance is looking confident of providing its traders enough liquidity and with Tether Treasury keep on minting new USDT, not even seven days apart, there seems enough reason to be.