A major development for Tether has just been reported - as the stablecoin has granted $250 million this afternoon.
This latest issuance now puts the total supply of Tether (USDT) at over $3 billion and will be particularly interesting for investors - after a University of Texas study recently claimed that the token was used to manipulate the price of Bitcoin during last year’s bull market.
Some market commentators see the new issuance as bullish news as it suggests large investors, otherwise known as whales, are entering the market. Commenting on the transaction, Litecoin founder Charlie Lee echoed this suspicion - remarking to his 781,000 twitter followers that such moves usually precede a price hike:
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
With another grant of $250m made on the 18th of May to the same address, it seems the market has reacted to the news - with the BTC price spiking since the purchase:
Data from CryptoCompare
Bitcoin is currently showing a positive 24-hour change of 8.65% and is trading at $6292 according to data from CryptoCompare. It remains to be seen, however, whether the news can push the coin out of its bearish slide.