Tether (USDT), the most well-liked stablecoin on the market, has been produced in enormous quantities at Tether Treasury.
One billion USDT were created on the Ethereum network, according to a tweet from @whale_alert, a platform that monitors significant cryptocurrency transactions. This might be a sign of increased demand for the token.
The CTO of Bitfinex and Tether, Paolo Ardoino, soon clarified that the minting was not an issuance but rather a replenishment of inventory.
According to Ardoino, this sum would be used as inventory for the upcoming round of issuance requests and chain swaps, which would entail moving it to different blockchains or exchanges as required.
Additionally, he stated that this transaction was authorized but not issued, meaning that reserves were used to back it.
The blockchain platform states that it keeps its peg to the dollar at 1:1 by keeping equal reserves in bank accounts. Critics have questioned the project’s transparency and stability recently, particularly in the wake of a litigation settlement with the New York Attorney General (NYAG) that disclosed that Tether had partial backing at one point.
Tether has also faced criticism after a Wall Street Journal investigation revealed that its partners used phony documents to access bank accounts. The inquiry found that the blockchain used front companies to access the financial system in 2018.
