Today Tether issued 1 billion USDT on the Ethereum network. Such events are often presented as a bullish signal, since the USDT released will supposedly be used to buy back cryptocurrencies. However, this time, as in many other cases, this is not the case.
It is not uncommon for Tether to issue USDT on one network and burn the same amount of USDT on another, as some entities may need to do this. For example, many exchanges support USDT deposits and withdrawals on different networks, and over time a situation may arise where most of the tokens will be on one network (for example, the Tron network), and users require withdrawal on another network (for example, Ethereum). Therefore, the exchange turns to Tether with a request to exchange tokens from one network to another. ❌ Today's USDT emission does not mean that someone wanted to invest $1 billion in crypto and buy all the altcoins on the cheap.
This billion USDT will be used for cross-chain swaps and future token issuance requests. This does not affect capitalization yet.