Today, Tether minted yet another 60 million USDT. At 10:51:32 UTC, $60,083,960 USD worth of Ethereum-based USDT were printed by Tether Treasury.
“PSA: Inventory replenish. Note this is an authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests,” commented Paolo Ardoino, CTO of Tether and the crypto exchange Bitfinex on this newly minted USDT.
On Feb. 19, Tether minted $60 million worth of USDT which Ardoino said were an authorized transaction that wasn’t issued yet. Those 60 million USDT he said will be used as an inventory for next period issuance.
However, Ardoino that “Last one (made the 19th of Feb) lasted 5 days,” and in less than a week, Tether Treasury ended up printing $120 million worth of USDT.
Usually, whenever new Tether us printed, the crypto market anticipates a price move as it has happened on previous occasions.
Tether has even been accused of manipulating the price of bitcoin by minting new USDT but the company has denied any accusations. Today, however, Bitcoin’s price has taken a dive, going from above $10,000 to below $9,500.
Keeping Binance Liquid?
Interestingly, just a few days before Tether printed these new USDT, the leading crypto exchange Binance ran out of USDT. The exchange hasn’t been able to meet the demand of its margin trading services.
A number of major traders have been unable to put long positions of traders. Popular trader Jacob Canfield being one of them who shared it on twitter as well. This has been because the exchange having a shortage of USDT to back up its loans.
However, a day after the reports of Binance not having enough supply of USDT came $5 million of USDT was moved from Tether Treasury to Binance.
Today, a total of 10,500,000 were also moved from Tether Treasury to Binance involving two separate transactions; 5,500,000 USDT worth $5,475,122 USD and 5,000,000 USDT worth $5,031,554 USD.
Despite all of this, last week Binance Futures increased the limit of the maximum cross collateral loan per account to 1 million USDT.
With Tether Treasury regularly printing new USDT, Binance might have a strong reason to increase the limit to this high and be confident of fulfilling the demand for margin trading.