In the world of cryptocurrencies, stablecoins play a vital role in providing stability and mitigating volatility. Tether, the largest stablecoin by market capitalization, has issued an additional 1 billion USDT each on the Ethereum and TRON networks, respectively. This news has caught the attention of investors and traders alike, as it may have significant implications for the cryptocurrency market.

According to the transaction data provided by Whale Alert, Tether issued 1 billion USDT on the Ethereum network. Similarly, another 1 billion USDT was issued on the TRON network.

This move by Tether has raised concerns among some experts, as the stablecoin has been the subject of controversy in the past. Some critics have raised questions about Tether’s backing, which has led to suspicions that the company may not hold enough reserves to support its outstanding tokens. However, Tether has always maintained that its tokens are fully backed by US dollars.

Despite the controversy, Tether has remained the dominant stablecoin in the market, with a market share of more than 50%. This dominance has been further solidified by the recent fall of BUSD, another stablecoin that was previously in the top 10. With BUSD out of the picture, there is a possibility that more demand for stablecoins may shift towards USDT.

It remains to be seen how the market will react to this news. Some investors and traders may view the issuance of additional USDT as a positive sign, as it may increase liquidity and provide more opportunities for trading. Others, however, may remain cautious and wait to see how the situation unfolds.

Overall, the issuance of an additional 1 billion USDT on both the Ethereum and TRON networks is a significant development in the world of stablecoins. It will be interesting to see how this news affects the market and whether Tether can maintain its position as the dominant stablecoin.

Read more: https://azcoinnews.com/tether-issues-2-billion-usdt-market-watches-closely-for-potential-impact.html

#tether #USDT #Stablecoins

At the request of City Councilor Raoul Ghisletta, Lugano City Hall has clarified the Plan ₿ Memorandum of Understanding entered into with Tether.

Summary

Tether, City of Lugano and the Plan ₿: explanations on the strategic collaboration

Tether, Lugano and Plan B: amid costs and financial concerns about the technology

The first anniversary of Plan ₿

Tether, City of Lugano and the Plan ₿: explanations on the strategic collaboration

On 10 February, Socialist City Councilor Raoul Ghisletta, together with Ps members Edoardo Cappelletti, Mattea David, Dario Petrini and Aurelio Sargenti, had forwarded a request for information regarding Plan ₿.

With that came the response explaining the Plan ₿ between the City of Lugano and the Tether company, describing the nature and purpose of the collaboration and bringing additional details about it.

First of all, the famous Plan ₿ stipulated on 3 March 2022, had made Tether, Bitcoin Lightning and LVGA as legal currencies in the Swiss city. In this regard, the explanation better defines the memorandum of intent with Tether as follows:

“a strategic collaboration, with the aim of strengthening Lugano’s positioning as a Swiss and European hub for digital innovation with a focus on blockchain technology through concrete projects and solutions.”

This goal was expected to be achieved through the training, organization and promotion of international events. And indeed, in October there was the first international event, the annual Plan B Forum in Lugano that saw 2,000 participants, with transactions in BTC, USDT and LVGA totaling 20,000 CHF (or Swiss francs).

In any case, this strategic collaboration between the City of Lugano and Tether does not constitute a convention, but a letter of intent with a duration set at a minimum of 4 years.

Tether, Lugano and Plan B: amid costs and financial concerns about the technology

Lugano City Hall also clarified the issue about the costs related to the collaboration with Tether.

And indeed, it seems that a large part of the costs are borne by the Tether company except for the dissemination content offered outside the forum, in Piazza Castello, wanted and financed by the City, for a total of about 30 thousand francs.

Not only that, the City of Lugano allegedly spent another 5,000 CHF for the two people, who traveled to Davos in the context of the World Economic Forum in 2022.

In this regard, the City of Lugano justified the investment, assuring that the impact and return on image were exponentially greater, as attested by global media coverage.

When it comes to financial concerns about the application of the technology behind Tether, the executive responded as follows:

“Fear and bewilderment in the face of some innovation is understandable, not least because in this specific case it is a complex technology. However, we believe that shutting down is not a solution because it has always been proven, including in the past, that innovations such as blockchain are here to stay (…) Fighting them out of partisanship makes no sense.”

The first anniversary of Plan ₿

While Lugano City Hall explains the details of the collaboration, this past 3 March 2023, both Tether and the City of Lugano celebrated the first anniversary of the Plan ₿ initiative.

At stake was the creation of a 100 million Swiss franc fund to support crypto startups and a 3 million Swiss franc fund to assist Lugano stores and businesses in adopting crypto.

In addition, Bitcoin, Tether and Lugano’s LVGA tokens have been accepted to pay for taxes, parking tickets, utilities and university fees. After one year since the establishment of Plan ₿, there are more than 150 stores and businesses in Lugano, including McDonald’s that accept BTC, USDT and LVGA as payment methods.

In addition, this initiative has also attracted a significant amount of investment to the city with many startups and entrepreneurs settling in Lugano. New well-paid jobs and a local economic boost have been some of the ramifications.

Tether and the City of Lugano also announced the launch of the Plan ₿ Business Hub, which will explore the potential of blockchain business technology, adoption and long-term use of crypto in the region.

#USDT #tether #Altcoin #Binance #crypto2023

There have been eight Tether transfers valued at $1 billion or more of which four have occurred within the past ten days. 

Whales are pulling their USDT out of exchanges at a rapid pace, in response to bank collapse and stablecoin de-pegging concerns. 

Stablecoin on exchanges represent buy side demand, it is likely that USDT’s removal from exchanges is therefore a sell signal. 

Analysts at crypto intelligence tracker Santiment identified four Tether (USDT) transfers valued at $1 billion or more within the past 10 days. In response to the tumultuous events of the past week, including the collapse of several crypto-friendly banks and stablecoin de-pegging, large wallet investors are pulling USDT out of exchanges. 

Stablecoins typically represent demand side liquidity, therefore removal of Tether from exchanges is considered a sell signal. 

Since stablecoin reserves on exchanges typically represent the demand for cryptocurrencies like Bitcoin, the decline in stablecoin reserves could be perceived as a sell signal. Further, smaller stablecoin reserves on exchanges imply reduced buying pressure on assets like Bitcoin, negatively influencing its price. 

Tether’s minting of $2 billion USDT tokens raises alarm

The largest stablecoin by market capitalization, Tether minted a whopping $1 billion USDT tokens on Ethereum and Tron blockchains on Wednesday. The stablecoin’s market capitalization climbed from $72.1 billion to $74.6 billion between March 12 and March 14, raising alarm among crypto investors. 

#tether #USDT #BTC #BNB #koinmilyoner

Stablecoin issuer Tether minted a total of $1 billion USDT on March 15.

The company’s CTO, Paolo Ardoino, stated that this was inventory replenishment in case of a spike in demand.

Meanwhile, Voyager has offloaded 130,000 ETH over the past two months, continuing its selling spree.

Tether’s recent mint of a billion USDT tokens might have momentarily caused FOMO among participants, but crypto markets quickly came to terms after clarifications from its  CTO. Investors need to be cautious as matters could get dicey in the coming days due to the chaos caused by the collapse of traditional finance banks.

Tether mints $2 billion USDT tokens

Tether minted a whopping $1 billion in USDT on Ethereum and TRON blockchains on March 15. The largest stablecoin’s market capitalization went from $72.1 billion to $74.6 billion between March 12 and March 14. 

Over the last few weeks, USDT seems to be taking the front and center stage but not because of a lawsuit or FUD, but because other US-based stablecoins are taking hits due to the collapse of three banks in the United States. 

To put things into perspective, Tether’s market capitalization has skyrocketed from $66 billion at the start of 2023 to $73.6 billion as of March 15, denoting an addition of more than $7 billion.

Tether’s CTO Paolo Ardoino clarified that the $2 billion minted on Ethereum and TRON blockchains were not issued transactions. He added,

… this amount will be used as inventory for next period issuance requests and chain swaps.

Voyager’s Ether selling spree coming to an end

The bankrupt crypto lender Voyager continues to offload its Ethereum holdings over the last few weeks. The latest sell orders suggest that the defunct company has sold a total of 130,000 ETH, worth roughly $220 million, valued at $1,700 per token. 

This leaves the crypto lender with 17,000 ETH, worth roughly $29 million at the current price levels. 

Connecting the dots

With markets in turmoil, certain investors succumb to panic while others perceive the disorder and uncertainty as an opportunity. Binance CEO, Changpeng Zhao (CZ), seems to have taken the old adage, “never let a good crisis go to waste,” to heart as announced the conversion of $1 billion in Industry Recovery Fund into Bitcoin, Ethereum and Binance Coin. 

To recap, 

Tether has minted USDT anticipating future demand.

The selling pressure on the Ethereum price from Voyager nears an end.

The last and final piece of the puzzle is a combination of CZ’s stance and ETH’s deflationary aspect post-Merge.

Considering these aspects, one can conclude that the buying pressure, although not here yet, is waiting to be triggered. Ethereum has a special reason to rally quicker and higher than most cryptocurrencies due to the aforementioned facts.

Macroeconomics and conclusion

If macroeconomics is to be poured into the mix, investors will only get more bullish. The US year-on-year Consumer Price Index (CPI) print on March 14 was 6.0% as forecasted. It came in lower than January’s 6.4%, suggesting disinflation.

A reduction in inflation would ease the pressure on the US Federal Reserve to raise interest rates at a faster pace. As a result, investors might have already priced in the 25 basis points (bps) hike for March. If true, then the worst is behind us and the bull rally is ready to resume. 

However, not everything is certain, and things could change due to the chaotic nature of the markets and macroeconomic conditions. Therefore, investors should exercise caution even if they are bullish. 

#Ethereum #tether #BullRun #koinmilyoner #BNB

Every crypto investor’s nightmare starts when a sudden change in the industry leads to panic and massive selloffs. The effect of these two occurrences usually leads to uncontrollable price dips and deep losses for investors. 

An example of such an event is the news that Circle couldn’t withdraw its $3.3 billion from Silicon Valley Bank. Notably, the bank was shut down by the California Department of Financial Protection and Innovation.

As the news broke, massive selloffs followed, causing an unlucky investor to lose deeply in a failed transaction. 

Deep Loss For Crypto Investors

The issue started when crypto firm Circle announced it hadn’t received a wire transfer of $3.3 billion from Silicon Valley Bank. As soon as the announcement went out, many USDC investors panicked and started withdrawing. As a result, the USDC stablecoin depegged from the US dollar. 

While some investors were fast enough to exchange their USDC for USDT, an investor wasn’t so lucky. In a Twitter post shared by BowTiedPickle, the investor made a $2 million payment but received $0.05 USDT.

After digging into the matter, BowTiedPickle discovered that the investor used KyberSwap aggregation router to dump “a large clip of 3CRV (DAI/USDC/USDT) LP token into USDT”. The user stored the crypto stablecoin in a liquidity pool which he could have sold for USDT for a 6% slippage. But as BowTiedPickle disclosed above, he chose a shady method.

Due to the rush, the investor forgot to set a slippage which would have allowed him to set the price for his transaction to go through. This resulted from human error, causing a permanent loss of funds. 

Brief On USDC Saga

USDC is the second largest stablecoin in the market after USDT. At the time of writing, the stablecoin has lost its peg on USD. It currently stands at $0.9169 and has lost 13.68% of its market cap. 

USDC issue started when Circle shared its latest audit disclosing that as of January 31, 20% or $8.6 billion of its reserves are in different financial institutions, including Silvergate, which crashed and shuttered Silicon Valley Bank. 

To be transparent to its customers, Circle announced its difficulty in withdrawing $3.3 billion of its $40 billion of USDC reserves in SVB. It also revealed that it joins other SVB depositors and customers to call for its continuity.

Unfortunately, the announcement yielded negative results as panic set in, causing many investors to withdraw. Moreover, crypto exchanges like Coinbase and Binance paused USDC conversions 30 minutes after the announcement, further exacerbating the situation.

#usdc #tether #Stablecoins #koinmilyoner #crypto2023