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- Bitfinex CTO provides insight behind the minting
- Nearly $80M worth of USDT transferred out of Tether Treasury
Whale Alert, a popular Twitter page that tracks various cryptocurrencies' movements, noted that around $400 million worth of USDT was recently minted on Tron’s Tether treasury.
This post was retweeted by Justin Sun, Tron’s CEO himself, and commentators were speculating why such a large amount of coins were minted in the first place. Many believe that this signifies that a significant crypto price pump/dump is coming very soon.
Bitfinex CTO provides insight behind the minting
Paolo Ardoino, the CTO of Tether and Bifinex, chose to reply to Whale Alert’s tweet to help address why such a significant amount of USDT was minted on Tron’s blockchain:
PSA: 400M USDt inventory replenish on Tron Network. Note this is a authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests and chain swaps.
Frances Coppola, a well-known British Economist, chose to question the morality of such a minting process by asking Ardoino:
Why is printing money to "replenish inventory" for next period's trading ok for Tether but not for the Federal Reserve?
This comment appears to take a swipe at Tether's, controversial, 1:1 USD peg, which many in the industry have continually pointed out for not being backed by real USD.
Nearly $80M worth of USDT transferred out of Tether Treasury
In little over an hour, Whale Alert noted that around $80 million worth of USDT was transferred out of Tron's Tether treasury.
While this can amount to nothing, it will be interesting to see how the price reacts over the next few hours.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.