Bitcoin [BTC] breached its $10k and $11k resistances today, which the community celebrated with a hint of nostalgia. However, the Tether Treasury also minted 100 million USDT, as it has for the past few weeks, and it does not appear a normal precautionary act.
Whale Alert, a tracker of large crypto-transactions, alerted the community on June 22 about this activity. The address of the Tether treasury was reported to be 5754284f345afc66a98fbb0a0afe71e0f007b949, and the hash rate of the minting was 4e7ef565be3e0a011d22a690709f0640b86a2178047410cf9dc2f57f2199669b. The following were the transaction details,
The comment section went wild as people were certain there would be a dump underway. Previously, when users questioned Tether Treasury’s printing of USDT, Paolo Ardoino, Chief Technology Officer of Bitfinex, stepped in to inform the community that the minted Tether was “authorized, but not issued.” He further clarified,
“Just it means that these tethers were created in the treasury wallet that will be used to full fill future issuance requests.”
After Ardoino’s clarification, Tether has minted more and more Tether with no explanation whatsoever. However, ViewBase, an account that provides blockchain analytics for traders, noted that after Bitcoin reached $10k, a FOMO set in and there have been large inflows of stablecoins into exchanges.
“$BTC’s surge above $10,000 seems to be triggering FOMO. Our Telegram bot is picking up large inflows of stablecoins into exchanges. $USDT $TUSD $USDC $USDS”
Another observation was made by Twitter user, @Silver_Watchdog,
“Someone is d*cking around on Coinbase..”
The user claimed that these bids were coming from Bitfinex and Binance. Bitfinex and Tether Treasury’s recent encounter with the New York Attorney General has impacted the exchange and such activities have consistently raised alarms. Many traders see a pattern that might take the price of Bitcoin down again. Users ought to be cautious as the market turns more vigilant.