Tether, the leading stablecoin, is making headlines once again after issuing 5 billion USD worth of USDT in the past 72 hours, injecting massive liquidity into the cryptocurrency markets.
The move has sparked a lot of interest among cryptocurrency enthusiasts and raised questions in the financial community, given Tether’s central role in market liquidity.
Tether issues additional 5 billion USDT
Blockchain analytics firm SpotOnChain has released Tether’s latest issuance schedule.
On the 6th, Tether issued 1 billion USD, which coincided with Bitcoin’s all-time high of 76,200 USD. Then, on the 9th and 10th, it issued another 2 billion USD, pushing Bitcoin above 80,000 USD.
Tether minted 2B $USDT again 30 minutes ago!#Tether has minted a total of 7B $USDT in the past 6 days!
Huge amounts of funds are being pumped into the crypto market!https://t.co/Ptsy2BsPoE pic.twitter.com/QU3LClKNam
— Lookonchain (@lookonchain) November 14, 2024
Tether’s 24-hour volume has reached 289 billion USD, and historical data shows that increases in USDT circulation often lead to bullish trends in major cryptocurrencies.
As Bitcoin approaches the 100,000 USD milestone, market participants are clearly seeing a connection between Tether’s activity and the broader price action.
Stablecoin trading volume is often used as an indicator of market sentiment. High trading volume for a newly issued stablecoin is a positive signal for the cryptocurrency market, while low trading volume suggests a bearish trend.
Tether’s USDT acts as both a fiat onramp for cryptocurrency purchases and an offramp for cashing out, and its supply is very important to the coin market.
Amid the cryptocurrency bull market, Tether CEO Paolo Ardoino revealed the company’s ambitious plans.
“By 2025, Tether will achieve hyper-productivity to achieve its ambitious vision,” Ardoino said.
The news also puts the spotlight on Howard Lutnick, CEO of Cantor Fitzgerald, who is President Donald Trump’s nominee for U.S. Secretary of Commerce.
While Rutnick has publicly defended Tether’s economic stability, his claims have been met with skepticism due to the lack of transparent evidence about Tether’s reserves.
Cantor Fitzgerald has emerged as Tether’s primary banking partner, a notable move as many global banks distance themselves from the stablecoin issuer.
The Wall Street Journal recently reported that Cantor Fitzgerald owns a 5% stake in Tether, worth about 600 million USD.
As Tether’s influence grows, so does the scrutiny of regulators. While the surge in issuance has boosted market sentiment, concerns about transparency and reserve backing have also resurfaced.
Justin Bonds’ Criticism of Tether
Cyber Capital founder Justin Bons has been critical of Tether, comparing it to other scandals in the cryptocurrency market.
“Tether’s insistence on avoiding transparency creates unnecessary mistrust,” he argued.
Opinions are divided on Tether’s practices and Rutnick’s claims.
Meanwhile, some industry leaders say regular reports from audit firms such as BDO Italia are sufficient evidence of Tether’s reserves.
“Tether has proven its reliability so far and has provided credible third-party audits,” says Ivo Georgiev of Ambire.
Tether plays a significant role in cryptocurrency liquidity, accounting for over 75% of the market share in the stablecoin ecosystem.
But as regulatory scrutiny intensifies, Tether is under pressure to increase transparency and address governance issues.
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