According to Omni Explorer “Stablecoin Tether” (USDT), which according to the founders of the project corresponds 1:1 to the US dollar, has released 250 million tokens yesterday, June 25.
At the end of March released the Tether 300 million tokens, which has led to a slight increase in the price of bitcoin (BTC). Then this step caused a new wave of criticism of the project, the main essence of which was that there was no public audit of the project to confirm the legitimacy of their assertion that the USDT refers to the US dollar 1:1.
And recently, a study by the University of Texas, under which USDT exactly is behind the manipulation of the price of bitcoin in 2017. It is worth noting that the Director General Tether denied these accusations.
The fact that the Tether has publicly severed ties with their auditor in January of this year – before the results of the audit – contributed to another wave of criticism. However, last week, there was unofficial approval of the auditing company, in which she argues that in fact, the financial reserves Tether roughly correspond to the number of issued tokens.
The founder of Litecoin (LTC) Charlie Lee said in his Twitter that 250 million USDT can be compared with the same amount in dollars, which are deposited on the cryptocurrency exchanges, but this does not mean an immediate price hike:
Generally, this has been a precursor of price going up. Tether gets printed when people deposit USD and get USDT to the 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