Tether, the controversial coin that purports having a 1:1 relationship with US Dollar reserves, has been busy over the past week.The coin has been the topic of controversy within the cryptocurrency community, as users speculate about the legitimacy of the project.
However, Tether continued to print tokens at an alarming pace. In January Tether released $1 billion worth USDT. In mid-march, Tether $300 million worth USDT tokens. In May, Tether released $250 million worth USDT. Again, yesterday, Tether released $250 million worth USDT tokens.
The effect has caused many investors to speculate over a looming pump in BTC pricing. While the influx of this token into the market has previously been met with climbing crypto prices, it has yet to establish a market turn-around throughout the first half of this year.
In effect, the gains provided from USDT influx have been short-lived, in particular when compared to the near year-long bull run experienced in 2017.
There have been multiple independent reports that claim to have evidence proving the market manipulation theory, with the most recent coming earlier this month from two researchers at the Austin campus of the University of Texas.
They noted that new Tether were often issued “following market downturns and result in sizable increases in bitcoin prices,” and argued that Tether issuance was responsible for half of the rise of BTC in 2017. Prior to that, another report filed by an anonymous author had similar findings.
In January, the negative press surrounding Tether deepened when it was announced the company had severed ties with Friedman LLP, a firm hired to perform an official audit on the company’s holding. In addition to driving down the confidence investors held in the USDT coin, it also gave the appearance that the company had something to hide–thereby contributing to the historic amount of FUD that precipitated the market collapse throughout the first half of this year.
The market is closely watching whether Bitcoin and the cryptocurrency market in general will go up this time, following the release of USDT tokens. At the time of writing this article, Bitcoin is up 2% to trade at $6,225.