During the last month, 600 million new usdt tokens were released to the market. At the same time, the bitcoin rate rose from $8,500 to $11,000. The founder of Ethfinex – the sister platform of Bitfinex exchange, which, in turn, is affiliated with the Issuer of USDT company Tether – Will Harbourn admits that these events are related to each other, but claims that there is no crime here.
In a conversation with the portal Decrypt, he said that investors pre-order large volumes of USDT from Tether, usually in a few days. They must place a bid of at least $100,000 to order stablecoin directly on Tether's website. To be able to meet "approximate expected demand," Tether releases USDT in batches, harborn Claims. In the process, several key system participants sign the transaction with their keys, which takes time and forces the company to group customer requests.
Then, when transfers are made to Tether accounts, new tokens are issued to investors. "Tether, in fact, simply pre-creates tokens on the blockchain based on the approximate projected demand. Typically, customers do not send $5 million without first notifying Tether. So Tether knows that it will need, for example, $250 million over the next few days. When a transfer is received, tokens are transferred to customers," he explained.
According to Harborne, one of the largest customers Tether includes over-the-counter platform that privately sell significant amounts of tablconv traders. "OTC-platform can conduct a major transaction for the sale of bitcoin in the United States, and then convert dollars to Tether to distribute the other side of the application on Bitfinex and Binance – exchanges, which are characterized by the greatest liquidity," said Harborn.
"No one buys Tether, – retorts blogger bitfinex'ed, who has been following the actions of the Issuer of stablecoin for several years. – Bitfinex is releasing Tether for its traders to manipulate the market and later pay for it."
Harborn claims that this statement is untrue, and insists that investors are sent only fully secured tokens after making money transfers from their side. Bitfinex'ed States that if this were the case, Tether would have no problem providing documents confirming the purchase of the USDT during the ongoing trial with the new York city attorney's office.
"If that were the case, Bitfinex would have provided the necessary documentation and avoided the lawsuit, – bitfinex'ed writes. – They could show that here we released 10 000 000 USDT for Mr. X, and here Mr. X transferred us $10 000 000 just before the issue".
Harborn said that the practice of selling large volumes of USDT associated not only with Tether itself and are not evidence of market manipulation. According to him, the transparency of the blockchain makes Tether's actions more obvious to third-party observers. Other exchanges receive the same large transfers in Fiat currencies as Tether, he added, but in their case these transactions are hidden from the General public.
Speaking about why investors began to acquire large volumes of USDT at the same time, Harborn referred to the features of the bull market. "Now that people think the bull market is back, they want to buy a lot of bitcoins and they need money on the exchanges, – he said. – I think it would be incredibly difficult to coordinate the actions of so many people, and the combined market forces are more powerful than any single group of traders."
At the same time, Harborn recognized that the issue of Tether emission and bitcoin growth belongs to the category of problems such as "chicken or egg".
source of tether picture
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