Stablecoin firm Tether minted 4B USDT in 4 weeks: Data
Major stablecoin issuer Tether has been increasingly minting new USDT ( USDT ) tokens, issuing 4 billion USDT over the past month.
Tether issued another 1 billion of Tether on the Tron blockchain on Nov. 10, the blockchain data provider Whale Alert reported . The latest USDT minting came just a few days after Tether issued another 1 billion USDT on Ethereum on Nov. 9, in addition to 2 billion USDT issued in two batches on the Tron blockchain on Nov. 3 and Oct. 19, according to Whale Alert data.
Tether chief technology officer and new CEO Paolo Ardoino commented on Whale Alert data on X (formerly Twitter), noting the latest 1 billion USDT transaction on the Tron network was a “USDT inventory replenish.” He wrote :
“Note this is an authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests and chain swaps.”
The recently issued USDT makes up a significant share of the total USDT issued this year. Based on Whale Alert data, Tether should have minted 22.75 billion USDT in 2023, with 13 billion, or 57%, having been issued on the Tron blockchain. The remaining amount of 9.75 billion USDT was issued on the Ethereum blockchain.
Tether market capitalization over the past year. Source: CoinGeckoTether has been actively minting new USDT stablecoins over the past year. In March 2023, Tether minted a whopping 9 billion USDT coins, in addition to the 3 billion minted over the previous month, according to Whale Alert data. The stablecoin issuer also minted a significant amount of USDT in mid-summer, issuing 3.75 billion USDT between June 12 and July 12.
While actively minting new stablecoins, Tether has also been burning some coins. On Aug. 22, Tether burnt 1.2 billion USDT on the Tron blockchain. Previously, the stablecoin firm also burnt 3.1 billion Tron USDT in June and 2 billion Ethereum USDT in February, according to Whale Alert.
The cryptocurrency community has quickly reacted to the most recent USDT minting transactions. One crypto enthusiast took to X to share some observations about how previous aggressive Tether USDT minting affected the market.
“Last time this much Tether got printed in a week a whole bank blew up,” the poster noticed , referring to banks like Silicon Valley Bank, Silvergate and Signature Bank shutting down operations in March 2023.
In the aftermath of the bank implosions, some industry observers alleged exposure between Tether and Signature. Tether subsequently denied such allegations , “unequivocally re-iterating” that it had no exposure to Silvergate, Silicon Valley Bank and Signature Bank.
Related: Tether issues $610M debt financing to Bitcoin miner Northern Data
In addition to the active minting of new coins, Tether has been working to integrate a major ecosystem part recently, according to Ardoino. Tether's CEO took to Twitter to announce that the firm is preparing to announce five new projects in 2024. “Couple of these could obliterate some popular Web2 centralized services for good,” he noted.
We're quite close to add another extremely powerful piece of the puzzle for @Tether_to ecosystem.
— Paolo Ardoino (@paoloardoino) November 12, 2023
Total of 5 mind-blowing projects (and counting) for 2024.
Couple of these could obliterate some popular Web2 centralized services for good.
Pure Real World Ecosystem aka "Things…
Tether did not immediately respond to Cointelegraph’s request for comment.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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