Tether, the most popular stablecoin is following the Federal Reserve blueprint during the Coronavirus (COVID-19) pandemic. The stablecoin crypto firm has been issued its own stimulus packages.
At the time of this writing, Tether has reportedly printed $120,000,000 million worth of USDT. The new injection happened on Saturday, April 19 as Bitcoin (BTC) and the cryptocurrency market surge.
Whale Alert, a live tracker of large crypto exchanges transactions first reported the move on Twitter.
💵 💵 💵 💵 💵 💵 💵 💵 💵 💵 120,000,000 #USDT (120,440,672 USD) minted at Tether Treasury
— Whale Alert (@whale_alert) April 18, 2020
Tether stablecoin’s purpose is to help stabilize the cryptocurrency market by pegging fiat currencies to crypto. It gives traders an escape when the market is volatile.
Crypto market reacts to Tether’s new USDT minting
Traders have in the pass accused Tether of minting large amount of USDT in order to drive higher crypto coins prices. Other stablecoins have faced the same market manipulation accusations.
However, Paolo Ardoino; Tether’s CTO responded to the allegation by claiming the $120,000,000 USDT minting motive is to replenish inventory, depleted due to high demand.
💵 💵 💵 💵 💵 💵 💵 💵 💵 💵 120,000,000 #USDT (120,440,672 USD) minted at Tether Treasury
— Whale Alert (@whale_alert) April 18, 2020
Do you think the stablecoin crypto firm is manipulating the crypto market by minting large amount of new USDTs?
Faith Obafemim tech lawyer, digital content consultant, blockchain & crypto researcher, emerging tech tech writer. She is currently doing research on the implementation of the African Continental Free Trade Agreement (AfCFTA) on the blockchain and recommending Kleros as a dispute resolution layer.
