Tether ready to release millions of USDT due to demand for bitcoin
Tether ready to release millions of USDT due to demand for bitcoin
Stable Coin

Tether ready to release millions of USDT due to demand for bitcoin

By Marco Cavicchioli - 29 Apr 2020

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The recent increase in demand for bitcoin may require Tether to release several million USDT

In recent days, a clear increase in demand for bitcoin has raised its price from $6,700 to over $7,900. 

This most likely means that fiat currency capital has returned to the crypto markets, especially in US dollars, and Tether is preparing to supply the markets with USDT accordingly. 

In fact, often those who buy bitcoin in fiat currency do not sell them in the same currency. Or, better, if they decide to resell them in many cases they prefer to do so using a stablecoin token such as USDT, rather than the same fiat currency they used for the purchase because stablecoins are much easier to move than fiat currencies and most importantly without limitations or banking complications. 

For this reason, in view of a possible increase in market demand for USDT, Tether has started to mint new tokens and store them waiting to release them on the market if necessary. 

As the page dedicated to transparency on Tether’s official website shows, at this moment, not all the minted USDT have been put on the market

Some, for example, have been authorized but not issued, others are blocked, others have been over minted. 

The minted USDT, not locked, but not yet issued on the market are the very reserves that Tether creates to be ready to release large amounts of USDT in a short time if the market requires it. 

For this reason, in the last few days, it has minted several tens of millions of USDT, in order to replenish the inventory pending a possible increase in demand. 

This is revealed by some tweets from Whale Alert: 

  • April 27th, minted 120,000,000 USDT;
  • April 27th, minted another $120,000,000,000;
  • April 27th, minted 30,000,000,000 USDT;
  • April 28th, minted $50,000,000,000 USDT. 

It was Tether’s CTO Paolo Ardoino who revealed that it was an inventory replenishment with a response to one of Whale Alert’s tweets. 

Obviously, it is not only the increased demand for bitcoin that will generate a possible future increase in demand for USDT as a result, but since there are less than two weeks to the halving, it is possible that this is currently an event more likely to attract capital to the crypto market, and thus also affect future demand for the stablecoin. 

Marco Cavicchioli

Born in 1975, Marco has been the first to talk about Bitcoin on YouTube in Italy. He founded ilBitcoin.news and the Facebook group" Bitcoin Italia (open and without scam) ".

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