Tether Mints $1 Billion USDT for “Inventory Replenish” on Ethereum Network
Tether, the popular stablecoin issuer, has recently minted $1 billion worth of its stablecoin USDT. According to Tether CEO Paolo Ardoino, this was done to replenish their inventory on the Ethereum Network.
Explanation from Tether CEO
Ardoino responded to a post by blockchain tracking platform Whale Alert, clarifying that the transfer was an authorized transaction for inventory purposes. He stated that the newly minted USDT would be used for future issuance requests and chain swaps.
What is Inventory Replenishment?
Inventory replenishment is the process of restocking goods to meet customer demand without accumulating excess stock. Tether’s inventory replenishment involves creating new USDT tokens that are stored in its treasury as “authorized but not issued” USDT. These tokens are not part of the total market capitalization until they are released into circulation.
Skepticism and Speculation
Commenters on Whale Alert’s post expressed skepticism about Ardoino’s explanation. Some questioned the legitimacy of creating such a large amount of USDT, while others speculated that it could be used to pump the price of Bitcoin.
Prior Occurrence
Ardoino’s comments mirror a similar incident in September 2023 when one billion USDT was minted. At that time, he also explained that the transaction was an authorization for future issuance requests and chain swaps on the Tron network.
Hot Take: Tether Replenishes Inventory with $1 Billion USDT Minting
Tether has recently minted $1 billion worth of its stablecoin USDT to replenish its inventory on the Ethereum Network. Tether CEO Paolo Ardoino clarified that this was an authorized transaction and the newly minted USDT would be used for future issuance requests and chain swaps. However, some skeptics questioned the legitimacy of creating such a large amount of USDT, while others speculated that it could be used to manipulate the price of Bitcoin. This incident is reminiscent of a similar occurrence in September 2023 when one billion USDT was minted for future use on the Tron network.
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