Tether, the operator of the world’s largest stablecoin, has recently minted another billion USDT. This transaction, however, is authorized but not yet issued. Tether CEO Paolo Ardoino clarified that this amount will be used as inventory for future issuance requests and chain swaps on the Ethereum blockchain.
It’s important to note that these newly minted tokens are not currently part of the total market capitalization of USDT, as they have not been released into circulation. Tether’s transparency page reveals that there is currently $925 million in authorized but not issued USDT on Ethereum.
This is not the first time Tether has engaged in such transactions. In September 2023, a similar minting of one billion USDT took place, with Ardoino explaining that it was also an authorization for inventory replenishment on the Tron network.
However, some skeptics have raised concerns about the lack of transparency surrounding these authorized but not issued transactions. They question the decision-making process and the individuals responsible for creating such a large amount of USDT.
Furthermore, there are speculations that this latest minting of USDT could be used to manipulate the price of Bitcoin. Some industry observers have linked Tether’s USDT minting to price pumping in the Bitcoin market.
Tether has experienced significant growth over the past year, with its market capitalization reaching new all-time highs. The company’s market value has increased by nearly 38% since January, surging from $66 billion to $91 billion.
In November 2023, Tether attributed this growth to market excitement around the potential approval of a spot Bitcoin exchange-traded fund. The company has also been actively involved in Bitcoin-related activities, including buying Bitcoin to manage its reserves and launching BTC mining operations.
Despite these developments, Tether has faced criticism for its lack of transparency and concerns about its impact on the cryptocurrency market. As of now, Tether has not responded to requests for comment on these matters.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Paolo Ardoino |
| Companies | Tether, CoinGecko, Whale Alert, Ethereum, Tron |
| Currencies | Tether, Bitcoin |
| Securities | None |
