Tether Issues new USDT Tokens Worth $50 Million
Tether (USDT) issued a new batch of tokens worth $50 million. A highly controversial stablecoin, Tether’s market capitalization lost around $300 million in the last 30 days, falling down from $2.7 billion in mid-July to $2.4 billion today as per coinmarketcap.
In terms of daily trading volume, Tether is in second place after bitcoin with $4.2 billion in trades in a day just after Bitcoin’s average daily trading volume of $5.7 billion.
This US dollar-pegged currency is one of the most important in the market with a rank of 9. It is generally traded at $1 or very close to it with small variations of a few cents depending on the market conditions. Interestingly, it often moves opposite to the market. When the market goes green, Tether goes red, and vice versa.
Tether has been involved in a controversy about its funds and how it was used to pump up the digital currency market during hard drops for a long time. It has been audited only by one company that only concluded by saying that Tether has the funds to back all the tokens.
This USDT controversy is not new and has been the focus of many experts in the field who have studied it and questioned its authenticity and transparency.
The increasing conversion from Tether to USD is associated with decreased interest in the digital currency market. Binance, one of the exchanges that use Tether the most, stated earlier this month that with tether ‘the concern is always there’.
In June, finance professor John Griffin and Amin Shams stated that Tether is sued to both stabilize and manipulate Bitcoin prices. Griffin commented,
I’ve looked at a lot of markets. If there’s fraud or manipulation in a market it can leave tracks in the data. The tracks in the data here are very consistent with a manipulation hypothesis.