Tether treasury just got itself out of the whole Bitfinex fiasco. However, it is back in the news after it minted 150,000,000 USDT. Tether claims to have backed every USDT with the US Dollar. However, during its feud with the New York Attorney General, it was revealed that only 74% of Tether was backed by cash and short-term securities. A Bloomberg report quoted from the file and stated,
“Tether currently has cash and cash equivalents of about $2.1 billion, “representing approximately 74 percent of the current outstanding tethers.”
Thus, the recently minted 150 million USDT could be backed either by USD or other assets. Whale Alert, a tracker of large transactions, alerted the community of this. The address of the Tether treasury was noted to be 5754284f345afc66a98fbb0a0afe71e0f007b949, and the hash rate of the minting was 0x974df415696175020d70f5f56d52649557c3283e7d1505c1ce7804cf006a8b5a. The following were the transaction details,
The community subsequently called out Tether for an “incoming dump,” and the speculation of Bitcoin [BTC] shooting up. However, Paolo Ardoino, Chief Technology Officer [CTO] of Bitfinex, stepped in to inform the community,
“Note: this is authorized but not issued.”
This ‘note’ did not go well with the community as one Twitter user, @LordHodlemort, asked,
“What exactly does that mean? We printed it, but we promise not to spend it?”
The CTO clarified,
“Just it means that these tethers were created in the treasury wallet that will be used to full fill future issuance requests.”
Tether treasury was not the only one preparing itself for future requests, as the USDC treasury minted 2,009,375 USDC on June 13 at 13:09:54 UTC. The USDC address identified was 55fe002aeff02f77364de339a1292923a15844b8 and the hash rate of the transaction was 0x42c79677df5844d45384ce56f68a448b4ec48bbb4577ffae62ede80f7b8c44cd.
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