$250 Million New Tokens Minted By Tether To Stay Ahead In The Stablecoin Competition

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The Tether foundation has reportedly minted more Tether (USDT) coins worth roughly $250 million, bringing the stable coin back on the back of controversy. The coin trades at a 1:1 ratio with the U.S dollar.

Stable coins are cryptocurrencies that are backed by a stable asset. The initial report about the $250 million newly minted Tether tokens was made by Omni Explorer which revealed that the new tokens were made on May 18. Tether has been at the center of controversy in the past especially after terminating its relationship with the Friedman LLP audit firm, prior to a major audit. The controversy also involved the lack of adequate proof about the digital token being backed by the U.S dollar at a 1:1 ratio.

The addition of the new coins means Tether?s supply now stands at 250 billion coins which means that it is tied to $250 billion. However, many critics have refused to come to terms with the claim that all those Tether tokens are backed by dollars. Tether has previously found itself being the center of controversy as a result of its stable coin status.

The Tether organization has been accused of pumping and dumping digital currency in the market and has also been criticized for its lack of transparency in transactions. Other controversies include refusing to play nice with auditors and some analysts do not believe that it has enough cash reserves to back the massive number of USDT tokens. It is still not clear whether Tether has been truthful about the USD reserves.

Despite the negative talk behind the cryptocurrency, USDT has been adopted by many cryptocurrency exchanges so that it can be used to mitigate the risks in the market, especially the highly volatile trends. Binance and HitBTC are some of the exchanges that have been using that approach. Stable coins are a critical part of the cryptocurrency market because they are not prone to high volatility like their counterparts. They, therefore, play an important role in the cryptocurrency market.

The concept of stable coins has also been gaining momentum, with major players such as Circle and Bitmain planning to come up with their own stable cryptocurrency. The two will work together to come up with a stable coin that will be tied to a private central bank.

Dippli is an independent media outlet that covers the current events in the crypto space. Got breaking news or a story to share? Then feel free to contact us at news@dippli.com.

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