Tether inadvertently prints five billion unbacked tethers 

Tether unwittingly printed $5 billion worth of its supposedly dollar-backed cryptocurrency, USDT, on Sunday, citing human error. 

- Advertisement -

Tether had supposedly been assisting cryptocurrency exchange Poloniex in transferring a mere $50 million USDT from the Bitcoin-based Omni blockchain to the Tron blockchain. To do this, Tether had to “print” a set amount to be transferred. 

Though Tether insists that each new tether minted represents a dollar in an offshore bank account, it can print—that is, create—the tokens out of thin air, before the payments come through. 

In this case, it printed some $4.95 billion too many. “While preparing the issuance for Omni to Tron swap there have been an issue with the token decimals,” Paolo Ardoino, the CTO of Tether sister company Bitfinex, wrote on Twitter. 

Nevertheless, Poloniex says the matter has now been “resolved.”

The churning of the money printer got traders briefly excited. Large USDT prints are often generated in response to “rough, projected demand” from large investors, which often leads to an increase in Bitcoin’s price. (Bitcoin’s price did in fact spike three percent when the excess tethers were minted.)

Elsewhere, USDT continues to be minted at a steady clip. Over the past two weeks, some $400 million have been created on the Ethereum blockchain—another platform many from the OMNI platform are “migrating” to.

- Advertisement -

Last week, the New York Attorney General submitted a court filing alleging that USDT is sometimes “loaned” to investors without being paid for upfront. 

There was no immediate response from Bitfinex. 



Source

Previous Articles:

- Advertisement -

Latest News

Nissan Recalls 480,000 Vehicles; Stock Surges Despite Engine Issue

Nissan is recalling over 480,000 vehicles in the U.S. and Canada due to engine...

Bitcoin Risks $2.67B in Longs if Price Falls Below $108K Level

Bitcoin's price approaches its all-time high, with traders watching for signs of a breakout...

CrowdStrike Stock Hits Record High After Analysts Hike Price Target

CrowdStrike Holdings (CRWD) stock reached an all-time high with a gain of more than...

Amber International Raises $25.5M to Grow $100M Crypto Reserve Fund

Amber International Holding raised $25.5 million in a private placement to expand its $100...

Traders Flock to Hyperliquid Apps Amid Hopes for Airdrop Rewards

Investors are moving millions into projects on the Hyperliquid blockchain in hopes of future...

Must Read

17 Best Cryptocurrency Wallets

If you are looking for a list with the best cryptocurrency wallets, then you've landed on the right page. Cryptocurrency, as we all know,...