Tether issued an additional USD1 billion on the ETH chain, which is a chain change operation
According to the report, the data of block browser shows that on March 4, at 18:31 (UTC+8), Tether issued an additional 1 billion USDT on the ETH chain. The transaction hash is 0x6ee9ea768ebc29daad9396b5d54a8b6510389b6261458a88adf8a0ed8ed4c11a.
Interpretation of this information:
###Keywords: Tether, USDT, ETH chain.
Tether is a cryptocurrency that was initially launched on the Bitcoin blockchain, but following the increasing demand, the company decided to create tokens on other blockchains such as Ethereum. The company claims that Tether tokens are backed by fiat currency that is held in reserve, and they aim to maintain a 1:1 ratio between the value of the token and the underlying fiat currency, hence the name “stablecoin.”
On March 4th, Tether, a controversial cryptocurrency company, issued an additional 1 billion USDT on the Ethereum blockchain. This significant issuance of new tokens raises questions about Tether’s credibility and their ability to maintain a stablecoin’s value. Tether has been under close scrutiny for several years, with claims of market manipulation and lack of transparency related to the backing of their token. Critics argue that Tether may not have enough fiat currency reserves to back all of its token issuance, fueling fears of a financial crisis in the cryptocurrency market.
Moreover, another aspect to consider is the timing of the issuance. Tether’s sudden issuance of new tokens occurred at a time of increased volatility in the cryptocurrency markets, giving rise to speculation that this may have been a move to manipulate prices. During the same period, Bitcoin prices fell by almost 8% and continued to be in a downward trend, and the issuance of new USDT may have been an attempt to pump up prices.
In conclusion, Tether’s issuance of new tokens on the Ethereum blockchain raises concerns about the stability of the cryptocurrency market. The company’s credibility remains questionable, and the lack of transparency regarding their fiat currency reserves will continue to raise concerns. Additionally, the timing of the issuance of new tokens in a volatile market raises suspicions of market manipulation.
###Keywords: Cryptocurrency market, Stablecoin, Market manipulation.
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