The Tether Treasury mints 160 million new USDT tokens as Bitcoin rises above $9,300 so in our Tether news today we will see that it means for the stablecoin.
While Bitcoin ascends sharply to the $9,340 region, the US-backed stablecoin Tether started a new minting spree. Whaleboat Alerts took it to twitter and stated that the Tether Treasury mints more than 160 million new coins in the past 24 hours in just two transactions. The first $60 million were minted right when bitcoin hit $8,000 while the second transaction over $100 million USDT was minted before Bitcoin pushed past $8,500.
💵 💵 💵 💵 💵 💵 💵 💵 💵 💵 100,000,000 #USDT (100,050,700 USD) minted at Tether Treasury
— Whale Alert (@whale_alert) April 29, 2020
In the meantime, there was a lot of USDT movement from the whales between Binance and Okex. In less than 12 hours, 91 million tokens were transferred from an unknown wallet to the two exchanges and the $85 million over two transactions went to Binance. About 22 million USDT was transferred out of the Tether Treasury.
🚨 🚨 🚨 🚨 🚨 50,015,000 #USDT (50,036,755 USD) transferred from unknown wallet to #Binance
— Whale Alert (@whale_alert) April 29, 2020
The Tether Treasury has been minting for quite some time now and has about $7.8 billion in Total USD assets. Many believed that the company is flippant on issuing tokens since over one billion has been issued in the last month alone. This could be the reason for the increase in crypto prices but some reports show that this type of market manipulation is unlikely. However, USDT is still a controversial cryptocurrency and some argued that it shouldn’t be held for any length of time. The stigma could be because of the 2019 court case where it was discovered that the token could be backed by 74% of fiat currency rather than a 1:1 ratio.
As previously reported in our Tether latest news, Tether minted $120 million coins last week. The chief technology officer (CTO) at Tether, Paolo Ardoino, calls the minting of $120 million of USDT an “inventory replenish” and says that the new tokens will be used to meet the future demand. As Tether mints $120 million, we can see that the issuance of new USDT is highly correlated with the previous Bitcoin surges. The company says that BTC rallies 70% of the time when new USDT is minted.
Bitcoin has just surpassed the $9,200 price range and we are expecting to see interesting developments in the price soon.
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