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Alert! USD Tether prints USDT tokens worth $250 million, Charlie Lee comments!

Anirudh VK

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Alert! USD Tether prints USDT tokens worth $250 million, Charlie Lee comments!
Source: Pixabay

USD Tether, the stablecoin which reportedly has 1:1 USD backing through reserve banking, has just printed 250 million USDT tokens. This may be indicative of a deposit of $250 million in USD Tether’s bank accounts.

Over recent claims of market manipulation, Tether produced a document that claimed that all USDT was confirmed to be backed up by US Dollars. The confirmation in question was conducted by Freeh Sporkin and Sullivan LLP, who had access to Tether’s accounts at two banks.

The exploration of funds took place over weeks, and the firm released data on how much the company held on June 1. The conclusion that the firm came to was that the amount is equal to the value of all the Tether coins in circulation. The amount was close to $2.54 billion. Tether’s CEO JL van der Velde said:

“Despite speculation, we have consistently stated that Tether is backed by USD reserves at or exceeding the Tethers in circulation at a given moment, and we’re glad to have independent verification of this to answer some of the questions posed by the public.”

Tether is a stablecoin designed to provide a value that does not change with the market. Even though the coin fluctuates, the changes have not changed within $0.05 of 1 US Dollar.

This provides perspective on the recent issuance of coins. As Litecoin [LTC] creator Charlie Lee pointed out about the event:



“Generally, this has been a precursor of price going up. Tether gets printed when people deposit USD and get USDT back. This USDT will then be used to buy crypto. This is similar to someone depositing $250MM to exchanges. Of course, that doesn’t mean they will buy right away. DYOR.”

The comments section of the tweet by Charlie Lee was filled with Twitterati connecting the issuance of Tether over signs of a bearish market. User Rolf said:

“Where did all the #tether $USDT go that entered the market in the past months specifically aug-jan? That was never deducted. Though Bitcoin dropped from 20K to 6K. All that previous USDT should still be at the side line. I call scam!”

Charlie Lee said in response:

“If there’s always more people getting in than leaving, then they will only print more USDT and not need to destroy any. Doesn’t mean that no one exchanges their USDT for USD.”





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Anirudh VK is a full-time journalist at AMBCrypto. He has a passion for writing and interest towards the future of blockchain technology and cryptocurrencies. He does not own any cryptocurrencies currently.

Bitcoin

John McAfee says he will reveal Nakamoto’s identity, Coinbase expands to 11 countries, and more

Priya

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John McAfee says he will reveal Nakamoto's identity, Coinbase expands to 11 countries, and more
Source: Unsplash

Daily Crypto News – April 18

1. John McAfee on Satoshi Nakamoto: The Founder of McAfee Associates stated that he would narrow down on the identity of Satoshi Nakamoto until he reveals Satoshi himself, otherwise he would reveal his identity to the crypto community. He also spoke about how he knows about Satoshi, to read about it, click here!

2. Coinbase expands its services to more countries: The leading exchange platform announced that it expanding its services to 11 more countries, which includes India, South Korea, and New Zealand. People in these countries can avail services provided on Coinbase.com, Coinbase Pro and its app on iOS and Android.

To know more about the countries Coinbase has expanded to, click here!

3. Craig Wright says the crypto-community want to silence him: Craig Wright, the self-proclaimed Satoshi Nakamoto, stated that the majority of the community was against him as they “desire to silence” him because they see someone who would bring an end to scams and pumps and dumps.

He also spoke about the next steps he would be taking in terms of the legal action concerning his defamation case. To read about it, click here!



4. Binance “marks the birth of a new genesis block”: The largest cryptocurrency exchange in terms of trade volume announced the launch of its Decentralized Exchange, and also stated that the mainnet swap would take place on 23 April 2019.

To read more about Binance DEX, click here!





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