Tether which is an altcoin which is supported by fiat currencies USD and EUR have now issued a $300 million USDT tokens which are priced at $1 per token yesterday according to Omni Explorer data. This was after Tether released another 86 mln in euro-backed EURT and 61.1 mln USDT mid-February on the Ethereum Blockchain. This news was posted by Bitfinex’ed who is an anonymous blogger and a Tether critic on twitter. According to the critic, the release of such a large amount of Tether caused the price of BTC to go up.
According to the tweet, “$300,000,000 new tethers in one day. This is the largest grant of fraudulent and unaudited Tether tokens in the blockchain history. Oh just see Bitcoin jumped up today because of this news.”
The price of Bitcoin went up immediately after the $300 mln Tether was released at 6:51 PM UTC. Currently, Bitcoin is trading above $9,000 which is already more than 6% rise in just 24 hours. Tether is supported by Bitfinex which is the 5th largest crypto exchange in the world according to market cap. This connection is what has led to the criticism from Bitfinex’ed. Nitfinex’ed is criticizing both the Token and Bitfinex for lack of transparency since the exchange has not had any external audit done on its cash reserve. This is after the company parted ways with its auditor in January just before an expected audit was to be made public.
Bitfinex, however, responded threatening to take legal action against its critics last December. Responding to the threat Bitfinex’ed has already hired a lawyer in case there will be any battle with the exchange company. Reports have it that as much as the altcoin has enough cash reserves in a Puerto Rican Bank, they need to reform their KYC/AML procedures before they face the threat of being shut down.