Home Bitcoin News Tether’s Unprecedented Surge: Minting 4 Billion USDT in 4 Weeks Raises Eyebrows

Tether’s Unprecedented Surge: Minting 4 Billion USDT in 4 Weeks Raises Eyebrows

Tether

In a surprising turn of events, Tether, a major player in the stablecoin market, has minted a whopping 4 billion USDT in the last month alone, constituting almost 18% of the total USDT issued in 2023. The significant surge in Tether’s token creation has not gone unnoticed, prompting questions about its implications on the cryptocurrency market.

According to reports from blockchain data provider Whale Alert, Tether issued an additional 1 billion USDT on the Tron blockchain on November 10, closely following the issuance of 1 billion USDT on Ethereum just a day earlier, on November 9. This comes on the heels of 2 billion USDT issued in two separate transactions on the Tron blockchain on November 3 and October 19.

Paolo Ardoino, Tether’s Chief Technology Officer and newly appointed CEO, shed light on the recent transactions, stating on X (formerly Twitter), “Note this is an authorized but not issued transaction, meaning that this amount will be used as inventory for the next period issuance requests and chain swaps.”

The newly minted USDT represents a significant portion of Tether’s total issuance in 2023. According to Whale Alert data, Tether should have minted approximately 22.75 billion USDT this year, with 57% issued on the Tron blockchain and the remaining 43% on the Ethereum blockchain.

This surge in token creation is not a standalone event for Tether. The company has been actively minting new USDT stablecoins throughout the past year, with a notable spike in March 2023 when 9 billion USDT coins were minted, in addition to the 3 billion minted the previous month. Tether also minted a substantial amount of USDT between June 12 and July 12, issuing 3.75 billion during that period.

Interestingly, amidst the continuous minting of new stablecoins, Tether has also been burning some coins. On August 22, Tether burnt 1.2 billion USDT on the Tron blockchain. Prior to that, the stablecoin firm burnt 3.1 billion Tron USDT in June and 2 billion Ethereum USDT in February.

The crypto community has reacted swiftly to these recent USDT minting transactions. Observers have drawn parallels to a previous surge in Tether minting that coincided with the implosion of banks like Silicon Valley Bank, Silvergate, and Signature Bank in March 2023. Although Tether denied any exposure to these banks, questions were raised about the stability of the cryptocurrency market.

In response to the community’s concerns, Ardoino reassured the public about Tether’s commitment to transparency. Meanwhile, the market remains vigilant, with one crypto enthusiast taking to X to share observations about the potential market impact, stating, “Last time this much Tether got printed in a week, a whole bank blew up.”

In addition to its active involvement in minting new coins, Tether is gearing up to integrate several new projects into its ecosystem. Ardoino recently announced on Twitter that the company is set to unveil five new projects in 2024, with some having the potential to disrupt popular centralized services in the Web2 domain.

As Tether continues to make waves in the cryptocurrency space, investors and enthusiasts alike are closely watching how these developments unfold. The unprecedented surge in USDT issuance raises questions about market stability and the potential implications for the broader financial ecosystem. Only time will reveal the true impact of Tether’s recent moves.

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James

James T, a passionate crypto journalist from South Africa, explores Litecoin, Dash, & Bitcoin intricacies. Loves sharing insights. Enjoy his work? Donate to support! Dash: XrD3ZdZAebm988BfHr1vqZZu6amSGuKR5F

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