Minting Tether

Recently, the Tether treasury who are responsible for managing the issuing of Tether and the management of their fiat-backed reserves minted an additional $300 million USD of the stablecoin.

Back in November of last year Bitcoin sank below what had until then seemed like an unbreakable support line Tether burned the same amount of tokens removing them from the coin supply. Rumours abounded that Tether could even be winding up its position.

More recently Tether faced criticism after it was noted that they had changed their terms of service. Whereas each USDT used to be backed by a US dollar in the bank, it is now backed by either that or an equivalent basket of “other assets”.

The exact date of the change is not known, Tether’s website now states:

Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities.”

The minting of the coins was first noticed by WhaleAlerts, a Twitter account, that informs people of large value crypto movements.

Leave a Reply

Your e-mail address will not be published. Required fields are marked *