Tether prints another $250 million worth of new USDT tokens on June 25th.
The stable coin Tether (USDT), which is backed at a 1:1 ratio to the US dollar, has issued another 250 million tokens according to Omni Explorer. They recently minted 250 million tokens on may 18th according to Omni Explorer more can be read in this article.
In a recent transparency report Tether showed that their token is fully backed by the US dollar. However, critics say that the transparency report is not conducted by an independent law firm.
Critics say the Washington-based law firm Freeh, Sporkin & Sullivan LLP, who conducted the report, is not “trustworthy like an actual audit firm would be” and “It was not an actual audit performed by a licensed accounting firm.”
Charlie Lee, the founder of Litecoin, tweeted: “Generally, this has been a precursor of the 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”
Despite the skepticism, the new printing of USDT is giving hope of a reversal of the crypto market.
A tweet by ‘@TetheralReserve‘ reads: “Chef Tether has returned to save Cryptocurrency! 250,000,000 USD Tethers fresh out the oven to save this bear market.”
A report called Is Bitcoin Really Un-Tethered? written by John M. Griffin and Amin Shams at the University of Texas which investigates whether Tether influences Bitcoin and other cryptocurrency prices find that “Tether seems to be used both to stabilize and manipulate Bitcoin prices.”
Furthermore, the study also says: “By mapping the blockchains of bitcoin and tether, we are able to establish that entities associated with the Bitfinex exchange use tether to purchase bitcoin when prices are falling. Such price supporting activities are successful, as Bitcoin prices rise following the periods of intervention. These effects are present only after negative returns and periods following the printing of tether.”
Nicholas Weaver, a researcher at the International Computer Science Institute at Berkeley said in an interview with CNBC back in February that “Over the past couple of months, a huge amount of tether has been created, it has shifted to the Bitfinex exchange and presumably buys bitcoin and other cryptos. This, I believe, has been keeping the price up”