- Tether mints $600,000,000 this month as Bitcoin declines
Tether mints an additional $120,000,000 in USDT tokens Tuesday morning. This comes as Tether mints $480,000,000 last week, bringing the months total to $600,000,000. Tether has minted more tokens this month than the entire market cap of Ethereum Classic.
Tether CTO, Paolo Ardoino claims that these new tokens are for “inventory replenishment” and will be used for future demand.
However the question arises: why not mint tokens when demand increases?
Tether USDT is a US Dollar backed stablecoin, thus 1 USDT will always be redeemable for $1. In order for stabelcoins to work, there must always be enough assets to redeem every token in the circulating supply.
However, as per the Tether website, the last external audit was back in 2018, then the stablecoin’s market cap was under $3 billion.
Tether Market Cap Surpasses Ripple
As reported earlier this week by The Crypto Associate, Tether’s market cap as now surpassed FinTech giant Ripple. The stabelcoin is now a top 3 cryptocurrency.
With Tether’s market cap rapidly increasing, a new external audit will go a long way in ensuring long-term transparency.
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