Tether recently minted another $1 billion of its Tether USDT stablecoin on the Ethereum blockchain, which is another big issuance within two months of its last minting on April 21.
In a June 12 tweet, Paul Ardoino took to Twitter to clarify that it’s part of regular inventory replenishment.
recent broadcast
Tether, the issuer of the stablecoin, recently minted a new $1 billion batch of its Tether USDT stablecoin on the Ethereum blockchain on June 12, following a minting just two months earlier on April 21.
In response to the concerns, Tether CTO Paolo Ardoino took to Twitter to provide clarification, explaining that the latest USDT coin is part of its regular “restocking” process on the Ethereum network. .
Ardoino emphasized that this recent issuance will not affect USDT’s overall market capitalization as it is classified as an “authorized but unissued transaction.” The minted amount will serve as inventory to fulfill future issuance requests and facilitate on-chain trades, ensuring a constant supply for upcoming transactions.
According to the Tether article, the CTO links in his Tweet, in certain cases, Tether may receive requests from cryptocurrency exchanges for on-chain exchanges, typically when the exchange holds excess funds on a blockchain but lacks sufficient funds. in other.
To facilitate the chain exchange, the exchange will communicate with Tether, specifying the initial and destination blockchains involved in the transfer.
Upon verifying receipt of the funds in the Tether wallet on the initial blockchain, an equivalent amount of funds will be sent to the destination blockchain, effectively completing the chain swap process.
Does the bull come back?
Paul’s Tweet generated a variety of responses from the Twitter community, with many hinting at the start of a new uptrend.
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This Tweet comes after a period where cryptocurrency prices are facing a decline. As a result, market participants have followed historical actions and are now seeking the stability of stablecoins to protect their assets until market conditions improve.
In this context, Tether (USDT), a widely recognized stablecoin, has become the favorite option. During the first week of June, USDT achieved a new milestone, with its market capitalization rising to $83.6 billion, surpassing its previous record of $83.2 billion and reaching a new all-time high.
