stablecoins It is very popular and has become indispensable in the cryptocurrency world. It provides an easy way to switch between fiat currencies like dollars and cryptocurrencies. The largest provider of these stablecoins is Tether. Over the past two weeks, Tether has issued 3 billion new USDT coins.
Public transaction data shows that Tether forged up to 1 billion new USDT tokens on December 4. In the two weeks prior to this, at least 2 billion USDT tokens were added to circulation. This means that 3 billion USDT tokens were forged in two weeks.
In total, there are now 76 billion USDT tokens in circulation. This makes Tether at least twice the size of the US Dollar (USDC), the second largest stablecoin.
The value of the USDT token is equal to the value of one US dollar. To keep this value stable, Tether has reserves to maintain adequate coverage.
Originally, the plan was to back every 1-to-1 USDT token with US dollars. However, we now know that this is not the case at all. Just 2.9% Of the Tether reserves are dollars. The rest of the reserves consist, among other things, of securities, but the content of these reserves is not particularly clear.
This is causing a huge headache for regulators around the world and encryption investors. American Securities and Exchange Commission (SEC) He regularly speaks quite negatively about the stablecoin sector. The IMF doesn’t have a good word for stablecoins either.
The financial research firm Hindenburg Research has even offered a reward of $1 million to anyone who comes up with specific information about Tether’s reserves.
The fact that the amount of tokens in circulation is increasing, as evidenced by the fact that tethers are adding billions to the total supply in just a few weeks, may big risks Many analysts say the concerns are within the cryptocurrency markets.
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