Tether has officially printed $250 million USDT – preparing the stage for a fresh capital injection into cryptocurrency markets in the wake of a bloody week for not only Bitcoin, but leading altcoins.
The move comes on the back of a report issued by John Griffin and Amin Shams of the University of Texas at Austin’s Department of Finance which concluded that a clear link exists between the ‘printing’ of new Tether tokens at Bitcoin’s most bullish price movements.
Despite concerns that the printing of new Tether tokens might effectively manipulate Bitcoin’s price movements, concerns have been allayed in recent weeks thanks to an investigation conducted by a former FBI Director who noted that Tether has bank deposits worth $2.55 billion USD.
Though not all fears might be so easily soothed, the news has been met with a positive reception in cryptocurrency circles. Litecoin founder Charlie Lee noted that the printing of new Tether tokens “has been a precursor of price going up” – though Lee noted that investors should always do their own research.
Generally, this has been a precursor of price going up. Tether gets printed when people deposit USD and get USDT back. This USDT will then be used to buy crypto. This is similar to someone depositing $250MM to exchanges. Of course, that doesn’t mean they will buy right away. DYOR https://t.co/zg2PEjGohv
— Charlie Lee [LTC⚡] (@SatoshiLite) June 25, 2018
Previously, the minting of fresh Tether tokens has sparked positive price trends – an issuance of 250,000 USDT on May 19th this year saw Bitcoin climb from $8255 USD to $8366 USD, before settling at $8247 USD.
Should a fresh Tether injection rally hopes and dreams, however, cryptocurrency markets have yet to depict such sentiment – at press time, Bitcoin trades at $6,106 USD, while Ethereum, Ripple, and Bitcoin Cash trade at $433 USD, $0.45 USD, and $703 USD, respectively.