Still ticking: Tether prints money out of nowhere
- A tweet from Mr. Whale indicates that 1,000,000,000 USDT has been minted by Tether and sent to an address.
- While there has been a lot of excitement about how this move by Tether will prop up falling values in global cryptocurrency market capitalization, another aspect assumes that Tether is printing money out of nowhere.
- Tether has been plagued by legal troubles for most of his history, most recently with the New York Attorney General.
- Currently, the stablecoin is the third largest cryptocurrency with a market capitalization of over $ 60 billion.
Tether, the world’s largest stablecoin with a market capitalization of over $ 60 billion, has just printed $ 1,000,000,000. To the wider financial world, it may seem like this money was minted out of nowhere.
A Twitter account called Mr. Whale posted a tweet on May 24, 2021 detailing the parties involved and the value of the USDT-minted transaction.
This comes at a time when Tether is plagued by legal issues that ask the question of whether or not the asset is really backed by the dollar. Demand for the stable coin has hit an all-time high, as evidenced by the recent surge in Tether’s market value.
From thin air?
After the information hit the mainstream media, it sparked an uproar among finance enthusiasts and sparked claims that Tether is merely printing money out of nowhere.
There is much speculation about Tether’s recent move to coin 1,000,000,000 USTD, and some claim it was a ploy to save the dwindling values as Bitcoin is up as much as 3% after the move.
As a stablecoin, Tether is tied to the US dollar at a ratio of 1: 1 and is expected to be covered by funds according to their distribution. However, a wave of legal troubles has revealed that Tether’s claim that it was 100% cash backed was false, and an investigation found that only 3.87% was cash backed.
Tether announced that much of its reserves in commercial paper, fiduciary deposits, loans and corporate bonds, etc. claims that the asset is entirely covered by reserves.
On the downside
- Tether’s success could be a blueprint for how CBDCs evolve and the future of banking in the near future, says Paolo Ardoino, CTO of Tether.
- CBDCs are already popular with central banks, with China, Bahamas, Jamaica, Lithuania and Russia already working on their respective projects
- Despite the legal hurdles, Paolo Ardoino describes 2021 as “so far a wonderful year for Tether”.
Tether’s overwhelming figures
Tether’s move to print one billion USDT firmly brings its market cap to over $ 60 billion, making it the third largest cryptocurrency by market cap above Binance Coin and below.
Tether is one of the most liquid cryptocurrencies out there and has seen a daily volume of $ 146.63 billion in the past 24 hours, compared to Bitcoin and Ethereum with a daily volume of $ 60.4 billion and 51.91, respectively Billion dollars.
Tether holds the record for fastest company in history to reach a valuation of $ 50 billion after completing the feat in less than 2 years. In comparison, it took Amazon (NASDAQ 🙂 and Tesla (NASDAQ 🙂 16 years to reach the same valuation of 50 billion.
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