Tether (USDT) Sends New 50 Million Tokens Daily Tranche from Treasury to Back Price

The crypto bear market has returned with a vengeance, and the only thing coming to the rescue is Tether (USDT). Since neither institutional funds nor retail investments could boost crypto coins at this point, it is up to USDT trading to support prices, and ensure liquidity. On August 14, the Tether treasury sent out another 50 million tokens. It must be noted that no new USDT has been printed since June 25, and the tranches are of already existing tokens, to boost circulation.

The Tether treasury is second on the rich list following Binance, with more than 465 million minted tokens.

USDT turnover has been larger than the total supply of coins, showing demand for the stable coin to mitigate the current volatility.

https://twitter.com/Cryptocobbler/status/1029334477972099072

As altcoins enter a freefall, and a further slide or crashes are expected, the only safe haven are fixed-price coins, which, beyond USDT, include True USD (TUSD), nUSD (NUSD), BitUSD (BITUSD) and a handful of other assets matched to the US dollar. After the latest crash, USDT trading volumes took up more than 24.5% of the entire crypto market, indicating selling.

In the past months, USDT has spread to virtually all significant exchanges. Critics have noted that this allows for the creation of multiple marketplaces without the need for a license to handle fiat. Binance, the leading USDT holder, now has more than 700 million USDT tokens, up from around 500 million a few months ago.

As altcoins lose half their value within days, parking funds into USDT is the only way to protect positions for traders. There is virtually no fiat off-ramp to sell directly, and limitations apply to most accounts. Therefore, even mainstream media have noted that now, the fate of the crypto world depends on the faith in the stability of the Tether project, and a handful of other stablecoins. But Tether is the leading one, with TUSD trading just 0.12% of total markets.

In the past, users were warned not to use exchanges that held USDT - but lately, this is impossible, as all the leading markets offer the token, and it is used in pairings to boost liquidity.

https://twitter.com/EpsilonTheory/status/1029300585504415744

The current market slide is a significant stress test for Tether, and in the coming days, there simply may not be enough USDT to go around to park the funds.