Tether, the stablecoin issuer, has recently minted its second $1 billion worth of USDT in just two months. This brings the total amount of USDT minted by Tether in 2023 to over $16 billion. Here are the most important things to know about this development:
1. Tether is a stablecoin that is pegged to the US dollar. This means that for every USDT token in circulation, there is supposed to be an equivalent amount of US dollars held in reserve by Tether. This is meant to provide stability to the value of USDT and make it a reliable store of value.
2. The recent minting of $1 billion worth of USDT by Tether is significant because it represents a large increase in the supply of this stablecoin. This could potentially have an impact on the value of USDT, as an increase in supply could lead to a decrease in demand and therefore a decrease in price.
3. Tether has been the subject of controversy in the past, with some critics questioning whether the company actually has enough reserves to back up the amount of USDT in circulation. Tether has consistently maintained that it has sufficient reserves and that its stablecoin is fully backed by US dollars.
In summary, Tether’s recent minting of $1 billion worth of USDT is a significant development that could potentially impact the value of this stablecoin. However, Tether has maintained that it has sufficient reserves to back up its stablecoin and provide stability to its value.