Why USDT Tether, a stablecoin company, minted 4 billion USDT over 4 weeks from October 19 to November 10, 2023
Tether, a leading stablecoin issuer in the ever-evolving cryptocurrency landscape, recently made headlines with its massive USDT token issuance, shaking up the cryptocurrency market and attracting the attention of investors and regulators alike. In the past month, Tether has minted a whopping 4 billion USDT, for a total of 22.75 billion USDT in 2023 alone. This move not only highlights the growing demand for stablecoins amid the volatility of digital currencies, but also raises questions about the impact such large-scale token issuances will have on cryptocurrency market dynamics. As Tether continues to expand its presence, balancing coin minting and burning and hinting at groundbreaking projects in 2024, the cryptocurrency community is watching closely, analyzing the potential impact each step will have on the broader financial ecosystem.
Over the past month, Tether has minted 4 billion USDT, equivalent to approximately 18% of the total USDT issued so far in 2023.
Issue volume
Tether has minted 4 billion USDT in the past month. These include:
- 1 billion USDT on the Tron blockchain on November 10th.
- 1 billion USDT on the Ethereum blockchain on November 9th.
- 2 billion USDT was issued twice on the Tron blockchain on November 3rd and October 19th.
According to whale alert data.
Total issuance volume in 2023
According to Whale Alert data, Tether issued 22.75 billion USDT in 2023. Of these, 13 billion USDT (57%) was minted on the Tron blockchain and the remaining 9.75 billion USDT was minted on the Ethereum blockchain.
issuance pattern
Tether has been actively mining the new USDT stablecoin over the past year. Notable issues include:
- 9 billion USDT in March 2023.
- In the month before March it was 3 billion USDT.
- 3.75 billion USDT from June 12 to July 12.
Paolo Ardoino, Tether’s Chief Technology Officer and newly appointed CEO, responded to data from X’s (formerly known as Twitter) Whale Alert regarding the recent transactions of 1 billion USDT on the Tron network. He stated that this transaction was intended to replenish Tether’s USDT holdings.. Ardoino explained that this was a pre-approved transaction, but no tokens had been issued yet. He indicated that these funds are set aside to meet future issuance demands and facilitate exchanges between different blockchain networks.
Coin Burning
Tether has also been involved in burning some coins. Significant burn incidents include:
- 1.2 billion USDT on the Tron blockchain on August 22nd.
- In June, it was 3.1 billion Tron USDT.
- 2 billion Ethereum USDT in February.
market reaction
The cryptocurrency community has shown great interest in these mining activities. Some have drawn a correlation between aggressive USDT mining and significant market events, such as the collapse of certain banks in March 2023.
Bank Collapse and Tether
The article mentions the closure of banks such as Silicon Valley Bank, Silvergate, and Signature Bank in March 2023. There were allegations of exposure between Tether and these banks, but Tether denied any exposure.
future project
Tether CEO Paolo Ardoino said: Hints of project scheduled for 2024. He suggested that such a project could have a major impact on the popular Web2 centralized service.
Context and Implications:
Stablecoin Mechanics: This large-scale USDT issuance reflects the growing demand for stablecoins in the cryptocurrency market. Stablecoins like USDT are very important for traders and investors as they provide a way to hedge against the volatility of other cryptocurrencies.
Blockchain Preference: The preference for issuing more USDT on the Tron blockchain compared to Ethereum may be due to factors such as transaction speed, cost, or network stability.
market impact: USDT issuance can have a significant impact on the cryptocurrency market. This may affect the liquidity, trading volume, and potentially price dynamics of other cryptocurrencies.
regulatory concerns: Such large-scale stablecoin issuance is likely to attract regulatory attention, especially considering the increasing scrutiny of the cryptocurrency market by various governments and financial authorities.
Overall, Tether’s activity reflects both the growing role of stablecoins in the cryptocurrency ecosystem and the dynamic nature of the market. The implications of these activities are multifaceted and impact market liquidity, regulatory focus, and strategic direction of cryptocurrency platforms.
The post Why Stablecoin Company USDT Tether Minted 4 Billion USDT Over 4 Weeks from October 19 to November 10, 2023 appeared first on BTC Wires.
