USD Tether, the sturdy cryptocurrency reported to be supported by the US Dollar in a 1:1 ratio via standby banking reserves, just released 250 million USDT tokens. That could be a sign of a $250 million bank transfer to the Tether’s USD bank accounts.
Tether (USDT) proven in legality by Freeh Sporkin and Sullivan LLP
Commenting on several allegations of tampering the cryptocurrencies market, notably the Bitcoin (BTC) price, Tether released a report saying that real US Dollars back the whole Tether (USDT). The verification, in this case, was carried out by Freeh Sporkin and Sullivan LLP, who was granted access to Tether’s bank accounts at two different financial institutions.
In short, Freeh Sporkin and Sullivan LLP reached the assumption that the figure Tether is holding in banks accounts is the same as the value of all Tether (USDT) coins in use.
Despite the speculations, we have consistently stated that Tether is backed by USD reserves at or above the outstanding Tether at any given time, and we are pleased to have independent verification of this to answer some of the questions raised by the public.
JL van der Velde, CEO of Tether
Tether “printed” $250 million in Tether (USDT) – Charlie Lee, the Litecoin (LTC) founder, commented on that
Tether (USDT) should be a stable cryptocurrency whose value against the US Dollar should be 1:1. However, the USDT fluctuated against the USD but never more than $0.05.
Above all, just recently Tether “printed” about $250 million in Tether (USDT), which could be a sign of a deposit in the same value into the Tether bank accounts.
Charlie Lee, the founder of Litecoin (LTC), commented on that, saying that:
Overall, this has been a precursor to the price hike. The belt is printed when people deposit USD and receive USDT back. This USDT will be used to purchase cryptography. This is similar to someone who deposits $250MM for exchanges. Of course, that doesn’t mean they’ll buy right away.
He also added that Tether would release more Tether (USDT) every time someone will be investing, so when “more people getting in than leaving,” Tether has no reasons to “kill” those USDT it “printed,” and that “doesn’t mean that no one exchanges their USDT for USD.”