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Hang on, minting and circulating are different things. The USDT circulating supply is currently approximately 76 billion.
by shiftpgdn 5y ago
Hang on, minting and circulating are different things. The USDT circulating supply is currently approximately 76 billion.
- vmception 5y agoLiterally nobody claimed otherwise.
- fastball 5y agoRight, they minted $3B, taking the circulating supply from $73B to $76B.
- nightski 5y agoDo you have any evidence of that other than the parent link which looks kind of scammy? Everywhere else I have read that the minted $3B is not circulating yet, it's waiting for new purchasers of Tether. Not saying you are wrong by any means, I'm genuinely curious.
- jstx1 5y agoWhat does "minted" but not circulating Tether even look like?
- bidirectional 5y agoTether minting coins and holding them until someone comes along and exchanges dollars for them.
- vmception 5y agoTether mints the tokens upon deposit of fiat on Bitfinex exchange OR when the Tether peg increases above $1 too far. Users are incentivized to do this as well (deposit dollars onto bitfinex, get new tether for that 1:1, sell new tethers above the peg on the open market, pushing the peg down) Circle/Coinbase use the exact same mechanism. These kinds of stablecoins are destroyed only upon explicit redemption. Not when sold to someone else on the open market. It’s not that different from a brokerage account’s deposits. People don’t actually withdraw that much because they don’t need that much cash. They keep their cash in those ecosystems waiting for other trading opportunities and add more from other sources into the exchange. I know it’s absurd to assume tether functions as described, 99% of the time for 99% of the value. But the market is showing the same thing with stablecoins that are better governed. For the decentralized/permissionless/uncensorable minded people, The best bet is for other kinds of stablecoins to grow faster