The popular stable coin issuer Tether has mistakenly issued and consequently burned $5 billion worth of USDT. The move was immediately picked up by the community and the CTO of Bitfinex, Paolo Ardoino, has already given an explanation on the matter. However, the price of Bitcoin immediately reacted, losing about 3.5% in a sudden spike. At the time of this writing, it continues to depreciate.
Tether Prints and Burns $5 Billion USDT
Popular and controversial stable coin issuer Tether has managed to get under the spotlight once again. Yesterday, July 13th, the company mistakenly minted and then subsequently destroyed a massive amount of USDT totaling to $5 billion.
The initial issuance was caught by the Whale Alert bot on Twitter and immediately caused a wave of euphoria within the community.
Quickly after that, however, Paolo Ardoino, the CTO at Tether-associated cryptocurrency exchange Bitfinex, provided an explanation.
While preparing the issuance for Omni to Tron swap there have been an issue with the token decimals. Please check the burn transactions below @Tether_tohttps://t.co/reEW51qCqihttps://t.co/zo5i3ayTuQ https://t.co/h1Y9Mnr4Oq
— Paolo Ardoino (@paoloardoino) July 13, 2019
Apparently, by now, all the newly issued USDT have already been burned. The move has also been confirmed by another cryptocurrency exchange – Poloniex, which disclaimed that it was conducting a USDT chain-swap with the assistance of Tether.
It’s important to understand that the USDT wasn’t issued on the mainly used networks but on the one of Tron.
Bitcoin’s Price Reacts Nevertheless
Tether has long been under suspicions of price manipulation. In fact, the company does have a somewhat of scandalous past in this regard.
It appears that the minting of fresh USDTs, especially in huge amounts, is considered by the community as a sign that the price of Bitcoin will be taking off in a certain direction.
Even though the $5B have never, supposedly, hit the market, the news of the huge amount of money being printed did have an impact on Bitcoin’s price.
Almost immediately after the transaction was first caught, Bitcoin decreased by about 3.5%, falling below $11,000. The price then went on to increase but has since continued to decline.and is currently trading at around $10,700 which marks a drop of about 4.5%.
The entire market took in a downward trajectory with other large-cap altcoins suffering as well. From the top 10, Ethereum seems to be the biggest loser, declining by about 11% at the time of this writing.