The relatively new crypto startup Tether managed to issue $250 million in new tokens this Monday, after which many analysts predicted that a Bitcoin price rally may be a reality over the next couple of days.
Tether, which is the creator of the cryptocurrency “stablecoin” USDT (also called tether) has issued 250 million new tokens at a value of $1 each. In fact, USDT (Tether) is pegged to USD at a 1-to-1 ratio and currently serves as a proxy for physical dollars on many crypto exchanges. This “stablecoin” has been designed to solve the difficulties in obtaining the banking relationships necessary to hold fiat currency on behalf of the customers.
Over the past 24 hours, USDT’s $4.2 billion in trading volume was second-highest among all cryptocurrencies. As such, it ranked behind only Bitcoin, the largest digital currency out there.
The fact that Tether is issuing new tokens is a sign that new capital is coming in the crypto markets. According to the company, the tokens are created when individuals or organizations deposit physical dollars into Tether’s reserve bank accounts.
The creation of 250 million new tokens, therefore, marked the first significant Tether issuance since May 18th, when the cryptocurrency issued $250 million in USDT. The Bitcoin price experienced a rally then – climbing from $8,100 to $8,500.
Right now, the token has a circulating market cap of more than $2.6 billion which makes it the 11th largest cryptocurrency and a popular altcoin for many investors.
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