Tether Treasury has been notorious in the past two months for printing an unprecedented amount of USDT. It just minted another 120M USDT.
The past few months have seen an explosion in USDT issued by Tether Treasury. For some perspective, the total supply of USDT has increased by over 43% since early March. However, Tether Treasury shows no signs of slowing down its issuance rate.
Tether Issues Another $120M USDT
As Whale Alert (@whale_alert) is reporting, 120M USDT has just been minted at Tether Treasury. As Bitfinex CTO Paolo Ardoino made clear, like he always does, this is an “inventory replenish.”
120,000,000 #USDT (119,950,661 USD) minted at Tether Treasury
— Whale Alert (@whale_alert) April 14, 2020
USDT has flooded the market in the past month and a half at an unprecedented rate. As BeInCrypto has reported on many times, March was a busy month for Tether Treasury. As a result, the stablecoin’s market capitalization has exploded. According to Tether’s own metrics, the total amount of assets is now $6.9 billion. It was just a few weeks ago, on March 27, that BeInCrypto reported that USDT had passed the $6 billion mark.
The demand for USDT has largely come from exchanges, it seems. Exchanges like Binance, Bitfinex, and others now hold more USDT than ever before. It’s unclear why exchanges are increasing their USDT stockpiles. As BeInCrypto reported in February, Binance suffered a shortage of USDT for margin-longs, which may explain why it is stockpiling more of the stablecoin now.
Critics Voice Concerns
There is some speculation that Tether Treasury is exploiting the current, chaotic situation to issue a record amount of USDT. There is no way to guarantee that USDT is backed by real dollars. There has been no independent audit conducted, and we only knew of Bitfinex’s relationship with Tether Treasury after it was impossible to deny. Each new batch of USDT is now being met with louder and louder criticisms in the replies.
— Khalil (@Shishoki93) April 14, 2020
How is this still legal, 3 years later lol
— Emanuil Boyanov (@iLeeT7) April 14, 2020
Tether remains undeterred by the persistent criticisms and continues to issue USDT on a consistent basis. However, it still faces legal issues on multiple fronts. The New York Attorney General pressed charges against Tether last year over it ‘borrowing’ $850M USDT to finance missing funds connected to Crypto Capital.