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September 23, 2020
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Uncontrolled printer! Tether supply increases 37% in one day

37% increase in Tether’s offer occurred on May 13 (remembering that this was one of several other impressions in that month only)

The Tether offer (USDT) increased by more than 37% on May 13, with the market value of USDT jumping from approximately $ 6.3 billion to $ 8.7 billion in seconds as new features were printed . While this 37% increase in Tether is in fact exaggerated, it does not look like something that will become rare in the future.

Source: Coinmarketcap

Turning on the money printer

The total of $ 2.4 billion (in USDT) printed on the 13th represents the largest amount the company has ever printed in one day. Tether’s only comparable occasion was the March 30 printing of that year, where about 1.5 billion USDT was printed and the market value of the USDT rose 33%.

It is no secret that Tether continuously puts money in circulation, and we don’t know if there is any support for that. In March, we saw a $ 120,000,000 impression of Tether that followed a pattern that you would normally see when Tether saves more USDT.

“PSA: $ 200 million inventory restocked on the Tron network.

Please note that this is an authorized transaction, but not issued, which means that this amount will be used as inventory for next period issue requests. ”

It is possible to perceive a pattern: a bot takes the new impression of Tether, then the CTO of Tether, Paolo Ardoino, immediately comments that the coined Tether was printed to “replenish the stock”, that is, remaining in the inventory and that it will be distributed as Tether issue requests. But is this really true?

Is Tether supporting BTC?

Many people claim that digital assets are a hedge against inflation. As the Federal Reserve (Fed) prints more money, the printed fiat currency suffers from inflation and, as a result, assets and commodities priced in that currency become more expensive.

In other words, as the United States government prints more dollars, items priced in US dollars such as groceries, gold and cryptocurrencies become more expensive because US dollars become worthless. By examining Tether’s multimillion-dollar impressions that happen almost every day, you realize that Tether’s impressions are similar to those of the U.S. government that print the most money.

“200,000,000 #USDT (200,382,814 USD) minted in the Tether Treasury”

The Wall Street Journal reported: “Tether has become an important source of liquidity in the cryptocurrency market. About 80% of all BTC trades are conducted on Tether, according to data from the research site CryptoCompare. “

Since most BTC trades are done on Tether, and Tether continually puts more USDT into circulation each day, in essence, Tether is inflating the market value of BTC, which raises the price of BTC – just as it does the minting of more US dollars in circulation makes BTC more valuable. Many people think that digital assets are a hedge against inflation, but when you look at Tether, you realize that digital assets like Tether are a source of inflation and not a protective measure against it.

Source: Coingeek

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