Tether (USDT) is a stablecoin that is pegged to the US dollar on a 1:1 basis. It is one of the most popular and widely used cryptocurrencies in the world, with a market capitalization of over $83 billion as of June 2023. Tether claims that every USDT token is backed by a corresponding amount of fiat currency or other assets in its reserves. However, Tether has faced criticism and controversy over its lack of transparency and auditability, as well as its involvement in market manipulation and legal issues.
On June 11, 2023, Tether announced that it had printed one billion USDT tokens, which were transferred to an unknown wallet. This was the largest single issuance of USDT in history, surpassing the previous record of 800 million USDT in April 2023. The reason for this massive minting is unclear, but some speculate that it could be related to the increasing demand for USDT in the crypto market, especially in China, where USDT is widely used as a means of circumventing capital controls and accessing global exchanges.
This is a significant milestone for Tether, as it shows the growing demand and adoption of its stablecoin in the crypto space. According to Tether’s website, the total supply of USDT tokens across all blockchains is now over 86 billion, with more than 40 billion on Tron alone.
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The impact of this new supply of USDT on the crypto market is also uncertain. Some argue that it could boost the liquidity and trading volume of cryptocurrencies, as well as provide support for their prices. Stablecoins are useful for traders and investors who want to hedge against the volatility of other cryptocurrencies, as well as for users who want to transact with traditional currencies across the blockchain.
Tether claims that its tokens are fully backed by its reserves, which include cash, cash equivalents, and other assets. However, some critics have questioned the transparency and accuracy of Tether’s reserve audits, as well as the potential legal and regulatory risks that the platform faces.
But where is the proof that Tether has such a large number of reserves? Tether has not provided any verifiable audit or independent verification of its reserves since 2018, when it was revealed that it only had 74% of the required reserves. Since then, Tether has been involved in several legal disputes and investigations by regulators and authorities, who have accused it of fraud, market manipulation and money laundering. Some critics and skeptics have suggested that Tether is printing USDT tokens out of thin air.
Despite these challenges, Tether remains the dominant stablecoin in the market, with a market capitalization of over 83 billion dollars and a daily trading volume of over 35 billion dollars. Tether supports multiple blockchains, such as Ethereum, Tron, EOS, and Algorand, and can be used for various purposes, such as payments, remittances, DeFi, gaming, and NFTs. Tether aims to disrupt the conventional financial system by providing a more modern and efficient approach to money.