Tether (USDT), the most popular stablecoin in the cryptocurrency market, is issued in large quantities by the Tether Treasury.
According to a tweet by @whale_alert, a service that tracks large-scale cryptocurrency transactions, 1 billion USDT has been issued on the Ethereum network, which could indicate a surge in demand for the token.
However, Paolo Ardoino, CTO of Bitfinex and Tether, quickly clarified that minting is not an issuance but a replenishment of inventory.
Ardoino explained that this amount will be used as inventory for issuance requests and chain swaps for the next period. This means that it will be transferred to other blockchains and exchanges as needed.
He also said this was an approved but unissued transaction, suggesting the reserves backed it.
Tether claims to maintain a 1:1 peg to the US dollar by holding equivalent reserves in bank accounts.
However, the project has recently been at the wrong end of several controversies, with critics questioning its transparency and solvency, notably due to a legal settlement with the New York State Attorney General (NYAG). After it became clear that Tether was not fully supported at the time.
Additionally, Tether came under attack after The Wall Street Journal investigation said the partners used fake documents to access their bank accounts.
Research shows that Tether used a paper farm to gain access to the banking system in 2018.
Tether Moves to Dominate the Stablecoin Market
This latest USDT issuance coincides with increasing competition in the cryptocurrency sector, where Tether aims to keep investors away from other stablecoins.
However, some are concerned that the issuance of USDT could impact the crypto market, as traders and investors widely use USDT as a medium of exchange and store of value.
Increased supply of USDT could signal a bullish trend for Bitcoin (BTC) and other cryptocurrencies as analysts indicate increased liquidity and demand in the market. I think.
However, some have warned that USDT could pose systemic risks to the cryptocurrency industry if it faces regulatory or legal issues in the future.
The total supply of USDT as of April 21st is 85,091,735,572, distributed across various blockchains and platforms.