$150 million worth of Tethers created just now: what does this mean?

11 Jun, 2019
by Jelmer van der Dussen
Breaking News
$150 million worth of Tethers created just now: what does this mean?

Tether Treasury has just minted $150 million worth of Tethers (USDT), according to an alert from Whale Alert. 

Bitfinex CTO Paolo Ardoino has stated that these Tethers are not distributed yet. Ardoino quickly responded to the alert on Twitter, saying that 'The USDT were created in the treasury wallet to be used to fullfill future issuance requests.' That means that the USDT are not on the market yet, but ready to enter whenever there are issuance requests.

Following the alert of Whale Alert, the community got extremely excited by the idea that $150 million would flow into Bitcoin and altcoins through the newly issued Tethers. However, this is not the case right now, with the USDT just being authorized, but not issued yet.

Right after the Whale Alert tweet and just before Bitfinex came out with a statement, the community expected a pump to enter the Bitcoin and altcoin markets.

New Tethers are issued when demand would push the price over $1. The new USDT will be entering the market as soon as that happens, to keep the stablecoin at $1. The more people turn fiat into Tether to start buying BTC and altcoins, the more Tethers there will be issued to keep the stability in the price.

This also happens when the markets turn bearish and a lot of traders escape to Tether to find a stable ground in a fast-dropping market.

There are now almost 3.3 billion USDT issued.

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Read more about: Tether (USDT)


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