Tether mints 100 million USDT, Bitcoin surges by 1.42% in the subsequent hour, coincidence?

  • 04 July 2019, Thursday, 09:00

The cryptocurrency market had been speculating that something suspicious has been going on within Bitfinex and Tether ecosystem, as Tether Treasury continuously prints Tether [USDT]. On July 4, Whale Alert alerted the community of Tether Treasury yet again minting 100,000,000 USDT.

The minting took place on Ethereum blockchain by Tether treasury and the address was noted to be c6cde7c39eb2f0f0095f41570af89efc2c1ea828. The hashrate of the activity was f087afe3d55249be3200ebe80a71e4576cc6276d486d0d6cb572d83d080cacf7 and the following were the details:

On July 3, 15 million USDT was transferred from Bitfinex to Tether Treasury on the Bitcoin blockchain, however, the CTO of Bitfinex, Paolo Ardoino said this was a part of a swap. The CTO explained:

“Tether is issued on multiple chains (Omni, ETH, ..) When @bitfinex receives too many deposits for Tether-Omni and then users want to withdraw Tether-ETH, @bitfinex sends back to @Tether_to the Omni ones and gets back the same amount in ETH.”

However, over the past few weeks, Tether Treasury minted USDT multiple times. This time when the community was alerted about Tether minting 15 million USDT, Ardoino came forward to explain the use of the minted Tether.

“We are getting more and more requests to swap Tether from Omni to ERC20. That’s why these Tether got minted https://etherscan.io/tx/0x0fc2fc3f07570328b3d86f8db29119468a429398806a8b3dd7f57add1e23563c … As you can see https://www.omniexplorer.info/search/1NTMakcgVwQpMdGxRQnFKyb3G1FAJysSfz … is growing since it is receiving Tether-Omni leg. “

The CTO further added that once the swap flow stabilized, they will burn the excess tokens. However, strange co-incidences were noticed in the Bitcoin market. Whenever BTC starts falling in the market, Tether treasury mints more USDT. Even on July 3, BTC was noting a fall of over a percent in an hour, and the community received an alert of Tether minting USDT.

The community does not seem convinced with the CTO’s explanation and suspects something larger is at play. At press time, Bitcoin saw a sudden surge of 1.42%.

Source: ambcrypto.com