• About Us
  • Privacy Policy
  • Contact Us
CryptoInfonet
  • News
  • Bitcoin
  • Ethereum
  • Blockchain
  • Altcoin
  • Regulation
No Result
View All Result
  • News
  • Bitcoin
  • Ethereum
  • Blockchain
  • Altcoin
  • Regulation
No Result
View All Result
CryptoInfonet
No Result
View All Result
Home Market

Tether Mints Record 2B USDT in One Week

January 11, 2021
in Market
0
Tether Mints Record 2B USDT in One Week
Discover This New Unique Trading Pattern This Powerful Tool Spots Over And Over Again With Precision Accuracy. You Could Double Or Triple Your Account This Year With These Signals!
Click here
to sign up


Tether printed two billion dollar-backed tokens last week, a new record for the leading stablecoin project.

Over 24.6 billion tethers now circulate across Ethereum, Tron and Bitcoin’s Omni Layer, per data from Coin Metrics, up from 4.8 billion one year ago.

The growth comes from a variety of factors, said Sam Trabucco, quantitative trader at Alameda Research. “Some [people] don’t put trust in their local banks or currencies,” he said, in which case using USDT is the “most liquid USD-like exposure the market has access to.”

Growth also comes when traders start to “aggressively sell BTC into USDT” or vice versa, Trabucco noted, which can cause the dollar-pegged token to temporarily trade above or below its peg.

For nearly all of January so far, USDT has traded slightly above $1 until early Monday morning when it dropped below the mark, per market data from U.S.-based cryptocurrency exchange Kraken.

Per Tether and Bitfinex CTO Paolo Ardoino, new deep-pocketed institutional bitcoin investors like MicroStrategy or Ruffer Invest executing over-the-counter (OTC) buy orders has also cause significant USDT supply growth.

“Among Tether customers are all the major OTC desks and high frequency trading firms in the space,” Ardoino told CoinDesk in a direct message. Taking the buyer’s funds, OTC desks will routinely convert to USDT and spread the buying pressure across all possible liquid venues, creating demand for more stablecoins.

Trabucco also noted “heightened volumes” across all cryptocurrency trading venues over the past few weeks combined with “the ability to use USDT as collateral for an increasing number of derivatives products” as additional reasons for tether’s substantial supply growth.

For Tether, all of these combined market dynamics “have led to an increase in creation”, Trabucco said.

Concurrent with its meteoric supply growth, increased attention has been paid to questions about Tether’s backing, an issue that is even the subject of an inquiry by the New York State Attorney General’s office.

Per prior court statements, Tether reserves include cash, short-term reserves and other cryptocurrencies. But no bank statements or legal documents supporting this claim have been published since 2018, when Bahamas-based Deltec Bank published an unsigned letter affirming that Tether held $1.8 billion in reserves, matching the amount of USDT issued at the time.

In April 2019, Tether’s supply was only about 74% backed by fiat equivalents, per a statement from its general counsel. But, reiterating a later statement made in November 2019, Ardoino took to Twitter on New Year’s Eve saying, “Tether is fully backed, full stop.”



Forex Trading can be risky, to cut the risk. Sign up to FX Delta for consistent results. The Best Forex trading signals for an average of 8% gains. Click here to sign up.



Source link

Tags: MintsRecordTetherUSDTWeek
Share76Tweet47

Related Posts

Bitcoin’s Price Surge Accelerates After Passing Milestone of $1T Market Value

Bitcoin’s Price Surge Accelerates After Passing Milestone of $1T Market Value

by CryptoInfoNet
February 19, 2021
0

Bitcoin’s recent price surge pushed the largest cryptocurrency past $1 trillion in market capitalization, a threshold that might prove to...

Who ISN'T Dabbling as Bitcoin Passes $52K, Ether Tops $1,900

Who ISN’T Dabbling as Bitcoin Passes $52K, Ether Tops $1,900

by CryptoInfoNet
February 18, 2021
0

Price PointBitcoin (BTC) was lower after surging on Wednesday to a new all-time high price above $52,000, while ether (ETH)...

Ether Looks Overleveraged as Cryptocurrency Hits New High Over $1,900

Ether Looks Overleveraged as Cryptocurrency Hits New High Over $1,900

by CryptoInfoNet
February 18, 2021
0

Ether soared to new record highs Thursday, but an overheated derivatives market may suggest higher volatility is on the way...

Market Wrap: Bitcoin Rallies On After Passing $50K Psychological Level to $52K

Market Wrap: Bitcoin Rallies On After Passing $50K Psychological Level to $52K

by CryptoInfoNet
February 17, 2021
0

Bitcoin broke above $52,000 Wednesday, with a market capitalization nearing $1 trillion.Bitcoin (BTC) trading around $52,231.69 as of 21:00 UTC...

Ajit Tripathi: How to Bring Off-Chain Assets to DeFi

Ajit Tripathi: How to Bring Off-Chain Assets to DeFi

by CryptoInfoNet
February 17, 2021
0

The recent GameStop short squeeze has brought decentralized finance (DeFi) into mainstream public consciousness. Well-known crypto influencers such as Caitlin...

Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

We have all the latest updated and legitimate information related to Blockchain, Cryptocurrency, latest market rates & trends, prices, new regulations along with every other thing that somehow related to crypto or digital currency market. Our main idea is to provide the kind of news that is original and at the same time, it can prove to be beneficial for our audience.

Categories

  • Altcoin
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Ethereum
  • Litecoin
  • Market
  • Regulation

Archives

  • March 2021
  • February 2021
  • January 2021
  • About Us
  • Privacy Policy
  • Contact Us

© 2021 cryptoinfonet.com

No Result
View All Result
  • News
  • Bitcoin
  • Ethereum
  • Blockchain
  • Altcoin
  • Regulation

© 2020 cryptoinfonet.com

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Go to mobile version