Tether’s Recent USDT Minting Raises Transparency Concerns
In a recent development, Tether, the widely-used stablecoin, has minted an additional billion USDT in an “authorized but not issued” transaction. This revelation was made by CEO Paolo Ardoino, following the blockchain tracking platform Whale Alert’s report on the creation of $1 billion worth of USDT by Tether Treasury on December 25.
CEO Paolo Ardoino, addressing community concerns, issued a public statement in the Whale Alert X thread, characterizing the transaction as an “inventory replenish” on the Ethereum blockchain. According to reports from CryptoSlate, Ardoino further clarified that the newly minted USDT was designated for inventory purposes, specifically for upcoming issuance requests and chain swaps.
Understanding “Authorized but not Issued” USDT:
The term “authorized but not issued” refers to newly generated tokens held in Tether’s treasury inventory. These tokens differ from the total market capitalization of USDT as they have not yet been released into circulation. As of December 26, 2023, approximately $925 million in USDT falls under the category of “authorized but not issued” on the Ethereum blockchain, as indicated by Tether’s FAQ.
Similarities with Tron Network Minting:
Ardoino’s recent public announcement bears resemblance to a 1 billion USDT minting on the Tron network in September 2023. In both instances, he clarified that the transactions were authorizations rather than actual issuances, with the allocated amounts serving as inventory for future issuance requests and chain swaps on their respective networks.
Community Skepticism Persists:
Despite Ardoino’s explanations, skepticism prevails within the online community regarding the transparency of Tether’s “authorized but not issued” transactions. Questions have been raised concerning the specifics of the transaction document and the individuals responsible for such decisions.
Potential Impact on Bitcoin Price:
Some skeptics have speculated that the recent minting of 1 billion USDT may be intended to influence the price of Bitcoin. This conjecture is not new, as industry observers have previously linked Tether’s USDT minting activities to alleged price manipulation in the Bitcoin market.
Transparency and Market Manipulation Concerns:
While Tether’s treasury inventory has a distinct purpose and remains separate from the circulating supply, concerns about transparency and potential market manipulation persist. The spotlight remains on the stablecoin, prompting a continued dialogue on the clarity and openness of its authorized but not issued transactions.
The recent minting of 1 billion USDT by Tether has stirred discussions within the cryptocurrency community. Despite Ardoino’s efforts to provide clarity, questions linger regarding the transparency of Tether’s transactions and their potential impact on the broader cryptocurrency market. As the crypto space evolves, the need for transparency and accountability in stablecoin operations continues to be a key focal point.