According to recent data, yet another massive amount of Tether (USDT) got minted at Tether Treasury. The amount includes 100 million USDT, which is around $100,221,270. The transaction occurred yesterday, on Tuesday, July 9th, at 21:59:46 UTC.
💵💵💵💵💵💵💵💵💵💵 100,000,000 #USDT (100,221,273 USD) minted at Tether Treasury
— Whale Alert (@whale_alert) July 9, 2019
Bitcoin pump is coming
Considering Tether’s past, all the incidents, scandals and alike, it is more than likely that the project is once again trying to manipulate and pump the price of Bitcoin (BTC). Many believe it to be the case, at the very least, and the entire crypto community is speculating what this might mean for the short term future of the crypto space.
New USDT coins are supposed to be issued when the demand starts affecting the coin’s price. Newly minted USDT then enters the market and ensures that the stablecoin remains stable. However, Tether has had more than a few attempts at impacting the market through Bitcoin manipulation.
Not to mention its suspicious activities with Bitfinex. Another amount, just as significant as this one, was minted only a week ago, on July 3th, and while Bitfinex CTO, Paolo Ardoino, stated that it was a part of a swap — many still don’t know what to make of it. Ardoino said that Tether is issued on multiple different chains, such as Omni, ETH, and alike.
1/3 Explanation: Tether is issued on multiple chains (Omni, ETH, ..)
When @bitfinex receives too many deposits for Tether-Omni and then users want to withdraw Tether-ETH, @bitfinex sends back to @Tether_to the Omni ones and gets back the same amount in ETH. https://t.co/R0U6AYAImi
— Paolo Ardoino (@paoloardoino) June 25, 2019
While this is a perfectly logical and understandable explanation, Tether Treasury minted USDT quite a few times in the past few weeks. Ardoino stated that requests to swap USDT from Omni to ERC20 are getting larger, which is why Tether needs to get minted, and why they keep doing it. Of course, excess tokens will be burned as soon as the swap flow stabilizes.
Interestingly enough, Tether Treasury tends to start minting more USDT whenever Bitcoin‘s price starts falling in the market. As soon as the price drop exceeds 1-5%, an alert of Tether being minted arrives. The real question right now is whether they will pump Tether immediately, or will they wait until later into the week.
Whatever the case may be, it would seem that BTC is about to be manipulated once more, and traders and investors are advised to be careful when making their decisions. For now, BTC happens to be the only coin trading in the green, with a 5.46% increase in price over the past 24 hours. In other words, it could be that the pump has already started. Bitcoin price currently sits at $13,035, and it will be rather interesting to see how far it will go this time.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.