Tether Prints $300 Million

0

Tether, the dollar pegged stable coin, has just printed out $300 million worth of USDT as demand for the crypto-currency keeps growing.

Some $800 million has been added to Tether’s market cap since April first, sending it to an all-time high of $2.84 billion (pictured above).

That makes it the first time Tether’s market cap has increased since summer 2018, with the crypto handling incredible volumes of $13.3 billion a day, much of it probably fake from wash-trading.

There’s considerable demand for USDT in China however where the Initial Exchange Offering (IEO) phenomena is in full swing.

To bypass the banning of centralized crypto exchanges, Chinese residents now buy USDT Over the Counter (OTC), then send it to crypto only exchanges where they can exchange it for IEO coins or other cryptos like bitcoin.

This somewhat new and rising method of fairly conveniently accessing the market sent CNY at a premium, making it more expensive to buy USDT than USD.

That could explain this $300 million newly printed tokenized dollars. USDT’s market cap is now all time high, so new tokens have to be created to meet demand.

Tether prints $300 million, April 2019

It is the first time they have printed tokens since the 25th of June 2018 when they created $250 million.

This time it appears they have changed the issuing address for unclear reasons. We can see there, however, the previous address known to belong to Tether’s mint authorized this change of issuer.

They usually print out in big chunks because the way this probably works in practice is that exchanges send USD to tether and receive USDT back with this USDT then traded on exchanges.

It could also be that big OTC traders have a direct pipeline to tether, with it unclear whether they pay the dollars upfront or once the USDT is sold.

You’d think the former, which would then suggest this is a leading indicator, but this could also be a pre-emptive printing of tokens since the unused supply has now dwindled.

That would make it a lagging indicator, but this is now the second prominent token to reach an all time high market cap after BNB did so a few days ago.

Copyrights Trustnodes.com

Comment

100000
  Subscribe  
Notify of