[Update Correction]: it appears this Tether deposit was a ‘simple send' from Bitfinex Wallet and was not ‘granted' which means created/printed tether tokens. Here is the rest of the original article which still holds value even though there are not 100M newly created tokens being minted this time around.
While the controversy has been brewing for over half a year, with all of the recent talk about Tether (USDT) and Bitfinex price manipulation of bitcoin (bitcoin futures contracts expirations also in the limelight here), we figured a brief update regarding what we just discovered was in order:
Today, on June 15, 2018, a day after SEC classifies Ethereum (ETH) as not a Security, Tether (USDT) was thought to print $100,000,000 in tokens:You can click the picture to see it live on omniexplorer.info or go here to see as well or go search for the address:
As it turns out, from the update above, this was not the case and was merely a Bitfinex deposit. You can use this link to see all of the new Tether's being printed here.
However, from day one, Tether, the cryptocurrency token allegedly pegged to the US Dollar, has been at the source of criticism for its ‘stablecoin‘ utility as no one has ever been able to verify or audit the paper trail regarding Tether's origins or banking connections. Since each USD-Token with Tether is supposed to be backed by one USD (held in reserve), many question the legitimacy of this and wonder if its not created out of thin air to prop up the price of bitcoin.
Here is a good mix of what we uncovered today so far. Ironically, as you can see, many were sarcastically calling for the Tether bail out here:
Why does CMC say the Tether (USDT) market cap increased by $100M today but I'm not seeing fresh Tether printed on the Omni explorer?
— Jackson Palmer (@ummjackson) June 15, 2018
— Tuur Demeester (@TuurDemeester) June 13, 2018
"Bitcoin’s Price Was Artificially Inflated Last Year, Researchers Say" – The tldr; when the price was dipping people bought bitcoin with Tether. Damn manipulation! https://t.co/M2Zf9svIzj pic.twitter.com/wcQTy81Sdk
— WhalePanda (@WhalePanda) June 13, 2018
Tether gets blasted for allegedly running a fractional reserve with zero proof. Meanwhile the world's banks run fractional reserves, by design, and nobody bats an eye.
— Matt Odell (@matt_odell) June 13, 2018
$BTC bounced from 6275 usdt and rejected at 6720. The SEC news does not change anything, all I see is a coordinated pump with no huge volume increase. Unfortunately, another drop may soon appear. Only Tether printing can give us a hope for a new bull run. #Bitcoin #BTC #Crypto pic.twitter.com/jRxVKkDnHM
— David Simonoff [Crypto] (@DaveSimonoff) June 15, 2018
Following today's media revelations, please like & RT this if you'd like @Tether_to to print a couple of billion USDT so we can get Bitcoin back to $20,000 … maybe they just need some encouragement#sarcasm
— Alistair Milne (@alistairmilne) June 13, 2018
> Push it sideways
> Print 💯 Million Tether
— Monkey [Meme Dispenser] (@___MonkaS___) June 15, 2018
I wonder, if a rise in $BTC and #crypto interest warranted the printing of 2.5 billion $USDT.. when do declining volumes and less speculation warrant the reimbursement of $USDT by @Tether_to? It makes absolutely no sense to freely borrow all that money to Tether.
— TomTom (@TomTomsCrypto) June 15, 2018
I don't have the technical chops to evaluate that study claiming Bitcoin is manipulated by Tether. But Aaron Brown is, I think, one of the smartest and clearest people in finance. And he thinks the study was very weak https://t.co/aPd48ucrAU
— Joe Weisenthal (@TheStalwart) June 15, 2018
There have been many crypto enthusiasts, speculators and of course haters who have tried to call out and label the USDT printing press business as complete fraud and not backed by anything as they continue to print more and more tokens. You can see some past news:
What do you guys think? Will the USDT keep printing more tokens despite all of the controversy swarming its hive to help prop back up the price of Bitcoin and the cryptocurrency markets like so many believed happen during the 2017 bull run.