Another 100 Million USDT Minted At Tether Treasury as Stablecoin Presence Continues Upward
Bitcoin has been soaring like it is the end of 2017 and now the entire crypto ecosystem wants to keep up. Popular Twitter account Whale Alert that tracks down huge movement in the crypto community noted that 100,000,000 USDT was minted at Tether Treasury.
💵💵💵💵💵💵💵💵💵💵 100,000,000 #USDT (100,000,000 USD) minted at Tether Treasury
— Whale Alert (@whale_alert) June 21, 2019
The cryptocurrency has been sent to Tether’s treasury account and all of the newly printed USDT is based on Ethereum’s blockchain.
Naturally, a move of the kind sparks quite a lot of curiosity amid the cryptocurrency community, with most of the people thinking that there is some sort of a large price move incoming. The crypto community accuses Tether of not having sufficient fiat reserves to back all of the Tether coins that are currently in circulation, posing a threat to the overall market integrity. Fears of Tether being insolvent came to a head in advance of the November 2018 drop to deeper lows.
However, at this point, it’s rather premature to come to any conclusions based on the words of Bitfinex’s CTO. The amount of USDT which has been printed hasn’t hit the market yet and it’s questionable when and if it will do so.
Regarding previously mentioned accusations, Tether had issued a statement saying:
“Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”). Every tether is also 1-to-1 pegged to the dollar, so 1 USD₮ is always valued by Tether at 1 USD.”
In the past, fast issuances of USDT have been linked to a price climb for BTC, a trend still noticeable in 2019. The fact that Tether has issued over $350 million in a couple of months has some analysts looking at the company very closely.