Recently, PayPal announced that it will soon introduce crypto buying and selling as part of its trading services, which led to large Bitcoin surge which finally allowed the coin to climb over $12k. Not only that, but BTC also nearly reached $13.2k, before facing a correction that took it back down to the $12.7k level. This massive surge of Bitcoin price resulted in almost half a billion USDT being minted.
Tether mints massive USDT amount after Bitcoin price surge
According to recent data, the Tether Treasury recently minted about half a billion new USDT coins, 185 million of which ended up distributed to different exchanges in the last day and a half.
A well-known blockchain tracker, Whale Alert, also reported two major transactions that happened on October 20th (150 million USDT) and October 21st (300 million USDT). The first amount was printed only a few hours before PayPal announced that it will offer crypto support. In other words, that one came just before Bitcoin’s price surged.
With Tether’s controversial history, many immediately started claiming that the project is going to engage in market manipulation again. However, the company’s CTO, Paolo Adoino, identified both transactions as simple inventory replenishes for the TRON network.
Where did the funds go?
With USDT minting often accompanying large Bitcoin price changes (surge or drop) over the years, it is not surprising that so many have questioned them. However, it could be argued that the Treasury is simply responding to demand.
After the project minted 150 million USDT yesterday, there were as many as 15 large transactions that went from the Treasury, carrying a total of 185.9 million coins. They ended up reaching a lot of addresses, some of which belonged to major exchanges such as Huobi and Bitfinex. A few even reached unknown ones. However, the large majority of the funds (around 126.9 million, or 70% of the funds) ended up on Binance.
At the moment, the Treasury’s wallet owns only around 280 million, as the last transaction happened only an hour after the second round of minting was over.