Tether Mints $1 Billion USDT to Replenish Inventory
26 Dec, 2023 ● Coin news
According to CEO Paolo Ardoino, Tether, the company behind the biggest stablecoin in the world, Tether (USDT), has minted an additional billion USDT, which is "authorized but not issued."
On December 25, the blockchain monitoring service Whale Alert informed users on X (formerly Twitter) that Tether Treasury had created $1 billion USDT.
In response, Tether CEO Ardoino said that the transaction was a "inventory replenish" on the Ethereum blockchain in a public service announcement posted in the Whale Alert's X thread.
“Note this is an authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests and chain swaps,” Ardoino said.
The process of ordering stock from suppliers in time to meet customer demand and prevent stock shortages without stockpiling excess inventory is known as inventory replenishment in traditional finance.
The process of producing new USDT that are kept in Tether's treasury inventory as "authorized but not issued" USDT is known as inventory replenishment, with regards to Tether.
Tether's FAQ states that because these tokens haven't been issued or put into circulation yet, they're not included in the market capitalization of USDT.
As of December 26, 2023, $925 million in USDT is "authorized but not issued" on Ethereum, per data from the Tether Transparency page.
The language used in Ardoino's most recent public service announcement is similar to that of a prior 1 billion USDT mint that Whale Alert discovered in September 2023.
During that time, Ardoino added that the USDT transaction was only an authorization and not a real issuance, and that the funds allotted would be used as inventory for future Tron network chain swaps and issuance requests.
Regarding Tether's approved but unissued transactions and Ardoino's most recent public service announcement, some observers of the online industry have voiced doubt.
One commenter asked whether Ardoino was one of the people who made the decisions, saying, "It would be interesting to examine the document or agreement and learn more about the individuals responsible for this Christmas miracle of creating 1 billion USDTs out of thin air."
Furthermore, some doubters contended that the most recent USDT mint will probably be utilized to drive up the price of Bitcoin (BTC), since some industry watchers have connected Tether's USDT minting to BTC price manipulation.
"Say it straight, you minted it to pump BTC," a thread commenter said.
Sources:
https://cointelegraph.com/news/tether-1-billion-usdt-inventory-replenish
https://x.com/whale_alert/status/1739318467734438111
https://x.com/paoloardoino/status/1739318762866610647
https://tether.to/en/transparency/#usdt
https://x.com/helmutsmeskonis/status/1739594008031048080?
