Crypto Investors See New Tether Worth $100 Million Causes Bitcoin Price Pump
False Reports on New Tether Tokens Worth $100 Million for Bitcoin’s Jump In Value on August 22nd
If anyone was keeping their eyes out this morning on Bitcoin, involved investors experienced a rollercoaster of emotions. Within a single minute, Bitcoin’s price went from $6,466 to $6,899, coinciding with a trading rush to keep the profit. However, from morning to afternoon, the price of BTC significantly dropped, completely obliterating the progress of the morning.
CCN shows that this jump happened almost exactly the same time as BitMEX had to go through their scheduled maintenance, leading experts to dwell on a potential connection between the two events. There’s now evidence that shows that bigger traders used this downtime to boost the price when positions could not be closed out on the chain. However, other experts believe that illegal market manipulation was the culprit.
Despite evident and the potential for manipulation, experts cannot ignore the addition of new Tethers (USDT) to the market a few hours before. On Tuesday afternoon alone, Tether’s Treasure transferred 100 million tokens to Bitfinex. The market cap of Tether instantly rose to $2.9 billion, with the greatest appeal being their backing by actual USD. There appears to be more to come from Tether, since there are still $151 million in tokens that have been approved but have not been put out on the market yet.
Reports published on August 21st show that Tether had just created 250 million tether tokens, which had not been launched at that time. Much of the lifespan of Tether has been linked with USD as a stablecoin and has even established itself at the #8 ranking in the top 10 cryptocurrencies. Before they pushed more tethers into circulation, there was some talk regarding what could happen with the influx.
Based on the claims made at the time, one of the concerns had to do with the lack of a complete audit on file, suggesting that there is a lack of transparency. Furthermore, Tether has already been blamed before for influencing price patterns with Bitcoin, which it seems to have done again. To help get a better picture of the honesty and integrity of tether, the “Transparency Update” report was released recently to show that tethers are “fully backed by physical dollars deposited in two separate banks.”
This article by CCN isn't factually correct – NO NEW TOKENS WERE CREATED – however doesn't mean it wasn't part of the pump, it likely could have been. However, this $100M transfer was from the Tether Treasury wallet to Bitfinex.
The last known date of new USDT tokens being created was June 25th. These tokens transfered today were previously from the same June 25th batch. They were created and sent to Bitfinex in June.
Then when Tether demand slows, Bitfinex sends them back to the Treasury. The reason for this is to safeguard them from a hack like we saw last year. The token generation address is multisig address (BTC/Omni address begins with 3), while the Bitfinex wallet is not (BTC/Omni address begins with 1). If you do not see “grant property tokens”, it is simply tokens moving back and forth between wallets and not new tokens created.
That is why the total supply has remained at 3,020,000,000 since June 25th. The amount of tokens “in circulation” will fluctuate, depending on how many are in the Treasury wallet vs. exchange/other wallets.
CCN and other outlets have been publishing inaccurate articles regarding this lately. They have not done their research.
Tether Treasury Wallet
Tether Asset / Total Supply
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