Tether prints new $60 million USDT as part of market intervention

As the decline in the crypto market does not appear to be slowing down, Tether Inc. is readjusting to the current situation by minting 60 million new USDT tokens. There is usually a surge in volatility whenever something like this occurs in the past. Investors and crypto traders are hoping that the injection of the new USDT digital coins would help slow the declining rate in the market.

This tether printer was activated as a measure to quell the latest Bitcoin market crash. It is the second time Tether is injecting more minted coins into the digital market after its previous exercise during the bitcoin crash on Monday.

The printing of new coins is part of the intervention

During BTC price downturns, the printing of new digital currencies is usually seen as a good correctional measure to bring back the market to a steady level. However, there are no immediate spikes as a result of the printing of USDT. Even the injected 60 million tranches is a small fraction of the already bloated supply of USDT.

Additional USDT will improve market liquidity

According to the co-founder of Primitive Crypto, Dovery Wan, the latest action of Tether is like “printing money out of thin air.” He pointed out that Tether is printing money without the necessary collateral or deposit needed for such.

Printed USDT will not be stored in the Tether wallet, rather it would go into the crypto ecosystem to help intervene in the current downturn experienced in the crypto market.

Tether Treasury has hinted that it is prepared to release cryptocurrency at any time. In the past, Binance used to hold the largest USDT wallet. However, the biggest holder right now is the Treasury. At a particular time, the coins can move into the central wallet and improve on the liquidity of the market. But this year, the supply of USDT has increased.

BTC still down despite additional USDT

With the current bear trend of BTC still hovering around 7.800, it seems the additional USDT may not have an impact on the market after all. USDT has also dropped in trading volumes from a peak of $60 billion to around $24 billion per day.

However, it’s still early time to conclude on the effect of the correctional move by Tether to print more USDT.