Tether Prints $300 million USDT, Will Crypto Market See Another Pump?

Updated On Mar 21, 2018 by Cameron Bishop

After a one-and-half month pause, Tether, is back to printing USDT tokens. The controversial project has printed out $300 million worth USDT tokens yesterday. Tether’s close relationship with Bitfinex exchange has led to speculation that the dollar-pegged token is being used to artificially rake up the price of cryptocurrencies.

While there is no empirical proof of Tether’s involvement in the Bitcoin’s rally in the final months of 2017, the cryptocurrency market continues to suspiciously track the release of Tether tokens.

Tether is a token issued on the Omni Layer, a platform that enables the creation of new assets on the Bitcoin blockchain. Every Omni transaction (and thus Tether transaction) is recorded in a Bitcoin transaction sharing the same transaction hash.

The $300 million transaction done yesterday can be seen in the Omni network:

tether transaction

Furthermore, a look at the blockspur data reveals that Tether has issued almost $1 billion worth USDT tokens in January.

tether grant

As of today, $2.52 billion worth USDT are in circulation. Additionally, $60 million USDT has been authorized on the Ethereum network.

This means, Tether should hold at least $2.52 billion in its bank account. Bloomberg had reported that SEC has issued subpoenas to Tether on December 6, 2017.

While the cryptocurrency market expects another pump and dump scenario, serious crypto investors could be concerned about the implications it might have in the future. Since it is pegged to the US dollar on 1:1 ratio, investors use the token to safeguard their profits i.e., when the market starts falling, cryptocurrencies are sold and Tether is bought and vice versa. Therefore, Tether is used as an anchor by cryptocurrency investors. However, the majority of crypto market participants are concerned that Tether is yet to provide an audited proof of its dollar holdings.

Cameron works tirelessly behind the scenes ensuring his many US news stories are factual, informative and brought to you in a timely fashion before most other media outlets have them. He is an investigative journalist at heart who also has a fond interest in the money and business markets too.

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