According to Omni Explorer, Tether generated $250 million worth of new USDT tokens last May 18th.
Tether is the company that issues the so-called stablecoins USDT. Tether claims these are backed at a 1:1 ratio by US dollars. The company was roundly criticized before due to lack of transparency after it broke ties with Friedman LLP, an auditing firm before an official audit could be done.
With a virtual monopoly on stablecoins, the total supply available of Tether coins has risen to 2.5 billion. A fair number of critics, however, find it hard to believe all tokens are backed by US dollars.
Anonymous blogger Bitfinex’ed is one such critic. The blogger has pointed out a correlation between Tether coin generation and price increases in mainstream cryptocurrencies like Bitcoin and Ethereum. Apparently, Bitcoin prices increase by about $120 and Ethereum went up by $10 an hour after the issuing of the $250 million worth of new Tether tokens.
Bitfinex, one of the world’s largest cryptocurrency exchanges, is a sister company of Tether and has threatened legal action against critics for questioning Tether’s 1:1 ratio with USD, which is hard to credit without an actual audit.
Tether, however, may not be the queen of the stablecoin sphere for long. New faces in the game, like Circle, which is backed by Goldman Sachs, TrueUSD and Basis have all begun developing their own take on stablecoins.