Tether(USDT) Continues to Stir Controversy with Newest Issuing
Tether, a stable coin pegged to the US dollar, created another 50 million new tokens on August 11, according to a report made by OmniExplorer, the official record of Tether transactions.
This new release was made amid a period of cryptocurrency market stabilization, after a long series of drops and sharp price declines. It was revealed that the coins were transferred into the wallet address owned by Bitfinex.
Soon after the release was made, charts showed that the price of Bitcoin increased by $300.
It should also be noted that since the issuing, Bitfinex lost almost 34 percent of its trading volume in the last 24-hour period. The two entities are known to have close ties with one another. Two executives from the exchange created the coin and the tokens are introduced into the market by making them available on Bitfinex.
Many have speculated that the introduction of USDT liquidity at certain moments has led to the manipulation of crypto market prices. Aside from manipulation allegations, the Tether company has been accused of not having the necessary funds to back all of its tokens.
The minting raises the total supply to 3.08 billion USDT, but it not as big as the release they had back in 2017. Tether’s market capitalization began diminishing since late July and the issuing is considered an equalizing move.
Another interesting thing worth noting is that USDT trading volumes have experienced a considerable increase on Monday, reaching 4.7 billion from the 2-3 billion it had a week before. Also, the prices of the other cryptocurrencies started stabilizing very soon after the release was made.
According to CoinMarketCap data, Tether (USDT) is still trading at $1.00 USD, having a market cap of $2,412,394,700 USD.