Tether has minted $1 billion in USDT on the Ethereum chain, capitalizing upon growing excitement around a possible spot Ethereum ETF.
Markets rose on the hope that U.S. Securities and Exchange Commission would take action. will approve Spot EthereumETHETF trading on Thursday.
Whale Alert First reported Tether CEO Paolo Ardoino replied and confirmed the coining of Tuesday. wrote, “PSA: 1B USDt inventory replenish on Ethereum Network. Note this is an authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests and chain swaps.”
It is not the very first time Tether has issued tokens in anticipation of an ETF. Tether minted $1 billion In January, rumors about a Bitcoin spot ETF led to the purchase of USDT tokens. On that particular day, the price of Ethereum (ETH), ranged between $2,204 and $2,294.61.
Ethereum surges
Ethereum’s value has increased. risen by 15% On Tuesday, amid speculation and other high-performing coins also surged. The increase in value is due to the increased likelihood that an Ethereum ETF approvalThe. 25% to 75% after Fidelity The company has updated its filings. Ethereum currently costs $3,726.78.
Many believe this latest minting was a move to get the SEC on board with a spot Ethereum exchange traded fund. Ivan Sherbakov is the CEO of Cryptorobotics. replied Tokens are minted, but there is speculation that they will be re-minted. “will be used as liquidity to pump the market ahead of ETF news.”
Use Cases for Tether
The increase in USDT indicates that there will be more money flowing into cryptocurrency, particularly Ethereum and ETH coins. The tokens in Tether are the ones that hold these USDT tokens. treasury You can also read about how to get started. “authorized but not issued.” Transparency according to Tether pageAs of 20 May, USDT worth $87.8 millions was available on Ethereum.
This movement comes as Deutsche Bank analysts highlight Tether’s lack of transparency. They have warned of possible severe consequences should the USDT stablecoin fail, due to its dominance in the stablecoins market. Its total capitalization currently exceeds more than $160 Billion. Tether’s market cap exceeds $111 Billion, and it controls 70% of the market for stablecoins.
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Source: crypto.news