Cryptocurrency startup Tether issued $250 million in new tokens on Monday, sparking hypothesis {that a} bitcoin value rally could possibly be inbound.
That Tether is issuing new tokens is a sign that new capital is flowing into the cryptocurrency markets, since — a minimum of in keeping with the corporate — tokens are created when people or organizations deposit bodily {dollars} into Tether’s reserve financial institution accounts.
Monday’s creation of 250 million new tokens marked the primary vital tether issuance since Could 18, when Tether issued $250 million in USDT. The bitcoin value rose within the days following this occasion, from $8,100 on Could 18 to $8,500 on Could 21. Nevertheless, that rally proved to be short-lived, and the bitcoin value shed greater than $2,300 within the weeks which have adopted.
Questions have lengthy swirled about Tether’s solvency, significantly for the reason that agency has by no means launched an unbiased audit of its steadiness sheet.
The token at the moment has a circulating market cap of greater than $2.6 billion, making it the Eleventh-largest cryptocurrency. In line with Tether’s “Transparency” web page, the agency is holding greater than $3 billion in its reserve financial institution accounts, indicating that it may subject roughly $400 million in new tokens with out exceeding its property.
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