- Tether pumps 19 billion USDT into the market in just one month.
- Fresh liquidity could stabilize or shake up the already volatile crypto scene.
- Critics question if Tether truly has the reserves to back this flood of tokens.
- Smaller blockchains may lose activity as Ethereum feels the strain of extra traffic.
In the fast-moving world of crypto, Tether has once again made headlines — and this time, it’s for minting a jaw-dropping 19 billion USDT in just one month.
https://x.com/cryptothedoggy/status/1865254899203600601
This sudden flood of new tokens is designed to provide liquidity to the crypto market, but not everyone is cheering. While some see it as a much-needed boost, others are raising eyebrows, asking tough questions about transparency and systemic risk.
Billions of USDT: What Just Happened?
On December 6, Tether created 2 billion new USDT tokens. That came hot on the heels of 1 billion USDT minted on both December 3 and December 5. In total, since November 6, Tether has pumped 19 billion USDT into the crypto bloodstream. These tokens were issued mainly on Ethereum and Tron networks.
Minting more USDT is like adding more cash to a marketplace — it helps transactions flow smoothly, especially when crypto prices are bouncing around. Right now, with Bitcoin flirting with $99,000, this extra liquidity could help keep things stable. But here’s the catch: If not managed properly, it could also make things a lot more volatile.
Why Some People Are Nervous
Whenever Tether mints a huge batch of USDT, it raises a familiar question: Is there enough money in the bank to back it up? USDT is a stablecoin, which means it’s supposed to be pegged to the U.S. dollar. For every token created, there should ideally be a real dollar or an equivalent asset held in reserve. But critics are worried that Tether’s reserves might not be as solid as they claim.
https://x.com/AltcoinGordon/status/1860381344284512526
One user on social media platform X put it bluntly: “Too much minting without clarity can lead to uncertainties — just like bad coffee.”
How This Affects the Crypto Market
On one hand, this flood of USDT could help keep the market running smoothly. More liquidity means easier trading, fewer delays, and potentially less chaos during high-volume days. If Bitcoin keeps climbing, this extra liquidity might help stabilize the ride.
https://x.com/open_satoshi_ai/status/1865232419600658914
But there are risks, too. Moving billions of USDT around affects different blockchains in different ways. For example, a lot of this new USDT is being shifted to Ethereum, where demand is high. That’s great for traders on Ethereum — unless it leads to network congestion and higher transaction fees. Meanwhile, smaller blockchains could see less activity as liquidity flows elsewhere.
