Supposedly by mistake, the controversial digital currency company Tether Limited printed five billion USDT stablecoins yesterday. The Bitcoin price immediately responded positively to the print, providing evidence for some that the company is manipulating bots to push up the price using large USDT mints.
Chief Technology Officer at both Bitfinex and Tether, Paolo Ardoino, claimed the five billion USDT printing was a mistake which occurred during a swap of the stablecoins between the Omni and Tron networks. He presented evidence that the tokens have now been burned and replaced with the 50 million USDT that was originally meant to be minted.
A Lifeline for Bitcoin?
Interestingly, the price of Bitcoin (BTC) jumped by around three percent immediately following the printing of new USDT tokens. This, for some, is evidence that there are numerous bots programmed to react to major USDT prints.
Other Twitter commentators took this a step further, alleging that the exchange was involved in deliberate and blatant manipulation of the Bitcoin market.
Twitter user @ImNotTheWolf claims that the timing of Tether’s mistake of printing five billion USDT at the exact moment the price crossed below a point of major technical support was far too convenient to be anything but a deliberate attempt to shift market sentiment.
Am I the only one thinking how shady it is that Tether decided to print this 'mistake' + an extra 50 Million RIGHT when we broke MAJOR support?
I mean… are they even TRYING to hide the manipulation anymore? pic.twitter.com/a5IGWB0nlk
— wolf || Area 51 Raid Recon 🕵️♂️ (@ImNotTheWolf) July 13, 2019
Tether Loves Controversy
Allegations of USDT being used to manipulate the price of Bitcoin are nothing new. In 2017, a number of articles were penned discussing the relationship between the Bitcoin price and Tether issuance.
The stablecoin has been mired in controversy since its very beginning. Issues with banking partners and a reluctance to undergo a full financial audit have drawn accusations that USDT is not backed 1:1 with US dollars as the firm claims.
iFinex Inc., the owner of both Tether and Bitfinex, is currently being sued by the New York Attorney General over the issue. Executives at the firm stand accused of using USDT to cover up its own financial shortcomings. The court case is ongoing and is set to continue later this month.
What do you think about the Tether ‘misprint?’ Do you think it was a genuine mistake? Tell us your thoughts in the comments below!
Images courtesy of Shutterstock, Twitter.