Minting of 4 Billion USDT by Tether In a Month Sparks Controversy

Minting new 4 billion USDT tokens in just one month, Tether, a major stablecoin issuer, has sparked intense controversy within the cryptocurrency community. Data from blockchain analytics firm Whale Alert has brought to light the rapid increase in issuance of USDT by Tether. Notably, Tether minted 1 billion USDT on the Tron blockchain on Nov. 10, right after issuing another 1 billion USDT on Ethereum on Nov. 9. This follows the issuance of 2 billion USDT on the Tron blockchain on Nov. 3 and Oct. 19, as per Whale Alert data.

Token Inventory and Chain Swaps

The recent significant minting of USDT has raised eyebrows, sparking varied opinions within the crypto sphere. Paolo Ardoino, the CTO and CEO of Tether, upon commenting on the data provided by Whale Alert, highlighted that the latest 1-billion-USDT transaction on the Tron network was a “USDT inventory replenish.” This indicates that the authorized transaction serves as inventory for upcoming issuance requests and chain swaps, as per Ardoino.

Establishing Market Share

Unveiling a detailed insight into the overall USDT issuance this year, the Whale Alert data suggests that Tether has minted a staggering 22.75 billion USDT, with the majority being issued on the Tron blockchain, accounting for 13 billion USDT, while the remaining 9.75 billion USDT have been issued on the Ethereum blockchain.

Active Minting and Coin Burning

Over the past year, Tether has been actively involved in minting new USDT stablecoins, having minted 9 billion USDT coins in March 2023, along with 3 billion minted in the preceding month. Furthermore, the stablecoin issuer minted 3.75 billion USDT between June 12 and July 12. However, alongside the aggressive minting, Tether has also been burning some of the coins. For instance, Tether burned 1.2 billion USDT on the Tron blockchain on Aug. 22 and has previously burned 3.1 billion Tron USDT in June and 2 billion Ethereum USDT in February, as per Whale Alert data.

Community Response and Controversy

The rapid and aggressive minting of USDT by Tether has led to a flurry of responses from the crypto community. One observer expressed concern, drawing parallels to the controversial events of March 2023 when significant Tether USDT minting coincided with the implosion of several banks, including Silicon Valley Bank, Silvergate, and Signature Bank.

Future Integration and Expansion

On the other hand, Tether has announced its upcoming plans for integrating new projects into its ecosystem. According to Paolo Ardoino, the firm is preparing to launch five new projects in 2024, with the aim of potentially disrupting popular Web2 centralized services. This announcement has added an extra layer of intrigue to Tether’s future trajectory.

Conclusion

With Tether’s recent activities raising controversy and sparking intense debate, the future implications and impact of the rapid minting of 4 billion USDT tokens remain to be seen. As the cryptocurrency community continues to closely monitor Tether’s actions, the implications on the broader market and investor sentiment could be significant.

Editor Notes

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