Crypto firm Tether has allegedly “printed” about $415 million worth of tokens this month, pushing it’s native “stablecoin” to 8th position in terms of market cap.
Tether had already issued about $200 million worth of USDT till last week this month, and the firm has been printing since then. Even Saturday saw the firm issue around 20 million USDT.
Tether holds a current market cap of $2.7 billion, making USDT the 8th-most valuable token. It also has the highest amount of transactions among digital currencies, second only to Bitcoin. Approximately $2.6 billion of USDT has plausibly been traded in the last 24 hours alone.
The “Rich List” held by USDT suggests that the Tether Treasury currently holds another $251 million worth of tokens that have been given authorization for issuing, but are yet to be released into the market.
Stablecoins are tokens that have their valuations backed by some real world assets, most commonly the US Dollar. The USDT token, often dubbed “tether” is the most popular of these. Since firms as these often have issues reaching the required banking collaborations in order to trade fiat directly, stablecoins are most commonly used as proxies for the USD on crypto-exchanges.
Tether has also published a report from a well known US law firm supporting its claim that every USDT is allegedly backed by a real USD stored in a bank account controlled by Tether.
However, the firm has still to submit a complete audit report in spite of multiple calls from critics. Tether explains that mainstream auditors will not partner up with crypto-firms. Interestingly, accounting firm PwC has recently been announced to have agreed to audit the company’s balance sheet.
After allegations that tether has been utilised to manipulate BTC prices, the company has also received backlash for a certain lack of transparency. It announced that it plans to move forward more opaquely in the future, and has also recently published a “Transparency Report” to that effect. In order to better its efforts for compliance, Tether has hired a former executive of the Bank of Montreal.