Tether Limited – the largest stablecoin issuer in the USDT market, has just moved to cope with the current fluctuations of the cryptocurrency market. Accordingly, the company has issued 60 million USDT tokens. In the past, this type of money injection often appeared to be extremely volatile.
Tether continues to pump tokens
The Tether printer was reactivated after the dump of the cryptocurrency market, with an additional pump of USD 60 million. The decision took place on March 11, just a day after BTC plummeted on Monday.
,000,000 💵 💵 💵 💵 💵 60,000,000 #USDT ($ 59,732,218) minted at Tether Treasury
– Whale Alert (@whale_alert) March 11, 2020
The move to print more tokens is essentially to cool Bitcoin's downward momentum. However, the additional USDT pump will not have an immediate impact, similar to what has happened in the past. The current 60 million tokens are also too small compared to the total supply of the market.
Dovey Wan, co-founder of Primitive Crypto, called the move Tether “printing money from the air”.
So this means Tether can ACTUALLY print money out of thin air without the actual deposit or collateral in place
well, at least it's better than the central banker ie. we are able to have on-chain transparency whenever Tether prints https://t.co/3r4bGhQ8sv
– Dovey 以德服人 Wan 🪐🦖 (@DoveyWan) March 11, 2020
"This means that Tether injected virtual value without actually having any amount of collateral deposited.
However, it is still fundamentally better than central banks, because we can still track the movements on the blockchain chain. "
The newly created token is reported to have left Tether's wallet and thus circulated into the ecosystem.
A Tether is rotated at least 10 times a day
Previously, the Binance exchange was thought to be the largest USDT wallet holder, but now that position has been handed over to the Tether Treasury. At any time, this coin is considered a way to increase market liquidity. Treasury wallets will also withdraw coins if necessary, but up to the present time of 2020, almost this wallet must constantly pump supply to the market.
Despite the moves just mentioned, BTC is still stuck at the $ 7,800 threshold and is reducing its trading volume continuously (currently $ 47 billion in a 24-hour range). This is a large reduction compared to the peak of $ 60 billion a day. Currently, most Tether tokens are concentrated on the Ethereum network and in addition to supporting the spot market, USDT also engages deeply into the futures market.
Based on these statistics, USDT will move at least 10 times around the ecosystem within a day. Earlier in early 2019, the volume of Bitcoin and Altcoin transactions had soared thanks to such a transparent pump.
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According to Coin68 / Bitcoinist
Recompiled ToiYeuBitcoin