Tether has minted 1 Billion USDT:
To many of you this is not news. But please read the whole thing.
Let me 1st explain w$hat's the significance of this minting of USDT:
Blockchain tracking services like Whale Alert, as shown in the image, report such large transactions.
Meaning of a large USDT minting:
Increased Liquidity: The minting of a large amount of USDT, like $1 billion, increases the total supply of Tether, which can inject liquidity into the cryptocurrency market.
Potential Market Impact: This influx of stablecoin liquidity can potentially influence market conditions, including the prices of other cryptocurrencies like Bitcoin and Ethereum, as it provides more capital for trading.
Meeting Demand: Large mints often occur in response to existing or anticipated demand for USDT, as traders may convert fiat currency into USDT to easily move funds between exchanges and participate in crypto trading.
Market Preparation: It can also signal that Tether is preparing for increased activity in the crypto ecosystem or for large-scale institutional trading.
Inventory Repositioning: Tether has also explained that such operations can be part of an inventory repositioning process to ensure sufficient supply for future requests and cross-chain swaps.
But Things Are Not As Good And Dandy As They Seem
The caveat :
There's a danger to it all.
Transcript of the interview with coinbase:
7.Live Interviewer Asks:
What happens to the stable coins that aren't regulated then in a future, it's an imminent future? One big one everybody always has in mind(Implies usdt). What happens to regulated exchanges like yours or ones that are...
CoinBase: Yes so we communicated and Coinbase put out statement I think two weeks ago now saying by the end of this year we would delist or take them necessary regulatory action on non-MECA compliant stable coins . So,we didn't name any stablecoins and frankly We'd love to see big stable coin that you're talking about And various others To understand if they are going get approved regulated then should come let us know But will be prevented in Europe from doing certain things with Non MECA compliance Stable Coins from the End Of This Year That's just one example That's just a consequence of the new rules that have come in.
I will later post videos on this topic where very knowledgeable people who knows their s**t very well explain the issue with USDT. Follow me, so that when I upload them you get notified.