Tether Mints $250 Mln of All New USDT Tokens, Rekindles Controversy

The contentious stablecoin Tether generated $250 million worth of new USDT tokens on May 18, in accordance with Omni Explorer.

Released at Sun, 20 May 2018 16:43:06 +0000
Tether might not be the sole contender in the stablecoin world, as new players such as Circle, backed by Goldman Sachs, TrueUSD, and Basis have begun creating their own stablecoins.

1 such critic is unknown blogger Bitfinex’ed, that has pointed out for the significance of Tether coin creation with price rises of mainstream cryptocurrencies such as Bitcoin and Ethereum. Based on Cointelegraph’s BTC and ETH price indices, the purchase price of Bitcoin increased approximately by $120 and Ethereum by $10 within one hour of the issuing of their $250 million worth of new Tether tokens.
Bitfinex, one of the largest exchanges for cryptocurrencies, is a sister company of Tether, and it has threatened legal action against critics such as Bitfinex’ed for questioning Tether’s 1:1 ratio with USD, a reality still unproven at the absence of an audit.
With a near monopoly on stablecoins, the complete supply of Tether tokens has now risen to 2.5 bln, and several critics find it hard to believe that all of those tokens are backed by US dollars.

Tether is the company that issues the so called stablecoins USDT, that it claims are backed at 1:1 ratio by US bucks. Tether was criticized for its lack of transparency following it broke ties with auditing firm Friedman LLP before an official audit may be conducted.