Suddenly Tether Issued An Additional 20 Million USDT
Curious events are taking place in the Tether system right now. Although the company has had certain problems with bank accounts in the past, most of them have been resolved. However, out of nowhere in recent days, a large number of new tokens have come into circulation. The situation is worrying as Tether has yet to audit and provide information to explain the discrepancy. Writes about this The Merkle.
The last year has been challenging for the Tether project. In a nutshell, Tether digitizes fiat currencies, resulting in Tether tokens. These tokens are tied to the currencies they represent. For example, 1 USDT will always be worth $ 1. At least this idea is at the heart of tokens, but as it turned out recently, it does not always work..
The company had problems with bank accounts a few months ago. As a result, they couldn’t provide USDT through their own service. This created a divergence in the USDT versus USD relationship. At a certain stage, users had to overpay 7% to convert tokens into dollars. Then 1 USDT cost $ 0.93, on which some were able to make good money.
This problem has been resolved, but now a new dark story is developing around Tether. According to Omni explorer, 20 million new USDT tokens were issued without prior notice. As you know, each USDT token must be backed by a dollar on the company’s account. It turns out that right now the company is admitting a 20 millionth discrepancy between these values. Until she commented on what was happening.
More interestingly, it looks like USDT 20 million was sent to the Bitfinex exchange, although there is no official confirmation of this. Users are starting to build conspiracy theories linking the release of 20 million tokens and the major correction that Bitcoin is currently in. Some believe that these tokens were issued to support the Bitcoin exchange rate..
Considering the fact that Bitfinex is going to leave the USD market sooner or later, this whole story with USDT looks even less reasonable. It would be nice to have a full audit of Tether accounts. The company has not published this information recently, which gives rise to new speculations. Although Tether started out as a completely transparent project, their recent actions raise questions.
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