Tether Inc. seems to be responding to the current decline in the cryptocurrency market today by minting 60,000,000 new USDT tokens. Whenever this has happened in the past, the encryption market generally experienced an increase in volatility.
The Tether printer was activated after the last collapse of the bitcoin market, with the last tranche creating another USD 60 million. The large-scale transaction on March 11 followed a prior impression immediately after BTC crashed on Monday.
💵 💵 💵 💵 💵 💵 60,000,000 #USDT ($ 59,732,218) minted at Tether Treasury
– Whale Alert (@whale_alert) March 11, 2020
Printing is part of the usual pattern of interventions that coincide with the decline in BTC prices. However, USDT printing is not causing immediate spikes, as in the past. The 60 million stretch is also relatively small compared to the USDT offer already inflated.
Dovey Wan, co-founder of Primitive Crypto and commentator on general issues related to cryptocurrencies, saw the latest intervention as "print money from nothing."
So this means Tether can ACTUALLY print money out of thin air without the actual deposit or collateral in place
well, at least it’s better than the central banker ie. we are able to have on-chain transparency whenever Tether prints https://t.co/3r4bGhQ8sv
– Dovey 以德服人 Wan 🪐🦖 (@DoveyWan) March 11, 2020
The recently printed USDT was also observed leaving the Tether treasure wallet and entering the cryptocurrency market.
🚨 10,000,000 #USDT (10,106,447 USD) transferred from Tether Treasury to unknown wallet
Tx: https://t.co/hcONG1cbjP whale_alert
– Crypto Bert (@ CryptoBert1) March 11, 2020
Tether changes hands quickly every time he enters the market
Despite the impression, BTC remains stagnant around 7,823.20. The USDT has also lowered its trading volumes to around $ 47 billion for 24 hours, below the peaks near $ 60 billion per day. The leading stable currency was one of the main factors in cash trade, but now it is also crawling into futures, as in the case of USDT liquidated futures in OKEx. Currently, most Tether tokens have been issued on the Ethereum network.
According to rotation statistics, the USDT now moves through the commercial ecosystem almost 10 times a day, a level of activity that generally coincides with the maximum commercial action. The printing of the new USDT since the beginning of 2019 led to significant growth in the volumes of bitcoin and altcoin.
The latest impressions, which accelerated in recent weeks, revived the narrative that the discovery of BTC prices depends largely on manipulated trade. Additional liquidity has helped boost markets, and up to 71% of all BTC transactions now happen against the USDT, compared with 60% in recent weeks.