April 19, 2024
Tether's Latest $1B USDT Creation Sparks Transparency Debate in Crypto Circles
Latest Cryptocurrency News

Tether Unveils Billion-Dollar USDT Creation Amidst Transparency Concerns

Tether, known for managing the largest stablecoin globally, recently created another billion USDT, as confirmed by CEO Paolo Ardoino. Whale Alert, a blockchain tracking platform, reported this on December 25. Ardoino clarified that this billion-dollar transaction was an “inventory replenish” on the Ethereum blockchain. He specified that, although authorized, the amount hadn’t been issued, intending to serve as inventory for future issuance requests and chain swaps.

Tether’s concept of inventory replenishment involves creating USDT stored in their treasury as “authorized but not issued,” distinct from the total market capitalization. Currently, as of December 26, 2023, $925 million in USDT remains authorized but not issued on Ethereum, according to data from Tether Transparency.

This isn’t the first time Ardoino has communicated such actions. In September 2023, a similar transaction prompted a comparable announcement. Despite these clarifications, some within the industry remain skeptical about the transparency surrounding Tether’s authorized but not-issued transactions.

Critics question the lack of transparency and hold individuals accountable for these actions, calling it a “Christmas miracle” to create a billion USDT out of thin air. Some skeptics speculate that this freshly minted USDT might aim to influence Bitcoin’s price, given past associations between Tether’s minting and BTC price movements.

Tether has experienced substantial growth throughout the year, witnessing a surge in market capitalization from $66 billion to $91 billion by the present time, according to CoinGecko data. This growth aligns with Tether’s involvement in Bitcoin-related activities, including purchasing Bitcoin for reserves and initiating BTC mining operations.

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