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Tether’s Mysterious 5 Billion USDT Misprint |

For some seven days, the latest Tether and USDT debacle remained quiet. However, it now seems to have re-awakened with the company printing $5 billion in quick succession. All that happened moments before the company burned most of the printed tokens. What is really happening?

The Inflation by Tether

The Whale_Alert account on twitter keeps track of all unusual occurrences affecting the major tokens, cryptos, and assets. It reports how things get out of hand for no clear reasons. In the early hours of July 14, the account gained heavy attention on reporting a new influx of USDT tokens created by Tether.

💵 💵 💵 💵 💵 💵 💵 💵 💵 💵 5,000,000,000 #USDT (4,996,932,524 USD) minted at Tether Treasury

Tx: https://t.co/2FzJrc3tyi

— Whale Alert (@whale_alert) July 13, 2019

But, the total created tokens surpassed the current total supply with 5 billion USDT suddenly joining the available supply. Though Tether increases supply by several millions frequently, it is evident that printing multiple billion USDT at once is strange. The company has not yet issued an official explanation for the occurrence but there could be genuine reasons for that.

But, in the end, the total supply has not shifted by much as it remained just below $4 billion

Torching 90% in 30 minutes

The most intriguing development was how 4.5 billion tokens were taken out of circulation once again in less than 30 minutes. It seems like Tether wanted to add 500 million USDT overnight yet an extra zero was added to that figure by mistake. It is quite an expensive mistake to make and it succeeded to put everyone in the crypto community on high alert.

🔥 🔥 🔥 🔥 🔥 🔥 🔥 🔥 🔥 🔥 4,500,000,000 #USDT (4,498,454,588 USD) burned at Tether Treasury

Tx: https://t.co/gobsOzzMDZ

— Whale Alert (@whale_alert) July 13, 2019

After the excess supply was burned from the market, it seems like normalcy will return soon. But, some people are worried about how Tether has added 500 million USDT to its supply at once. However, it does not mean that all the supply is in circulation at any given moment.

Currently, nothing seems seriously amiss just yet. Nonetheless, the crypto community hopes that the company will avoid these ‘odd’ mishaps in the future.

Bitcoin Plunges Hard

Nobody knows whether the Tether mishap will impact the current price of Bitcoin. But, it was clear that bitcoin dropped like a stone after the Tether ‘misprint’ got a lot of attention. Even though these events may be potentially unrelated, conspiracy theories will come up to keep the community engaged always.

Bitcoin is seemingly going through its routine ‘weekend motions’ with huge price fluctuations in either direction. Whether there is a significant impact on Bitcoin or not, time will tell in the long run.

John Wanguba

John is a content crafter and has experience in writing Forex and Crypto news for FXTimes for over a year. He is also an experienced creative and technical writer, and is usually one of the first ones to publish, discover or cover a scoop. e-mail: [email protected]

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