The leading stablecoin issuer, Tether has received a sum of $100 million from Bitnex, a crypto exchange. The transaction on October 2, 2023, was paid in two tranches.
The first tranche worth about $50,039,125 was paid at about 9:43 a.m. UTC, while the second tranche worth $50,038,875 was delivered a few minutes later. However, for both transactions, two different blockchain Ethereum and Tron were used.
Data from CryptoQuant shows that stablecoin holdings over the past year have witnessed a nose dive since November 2022. However, before the decline in 2021, stablecoin holdings hit an all-time high, with investors pumping USDT into the corporation.
Meanwhile, traders on X (formerly known as Twitter) responded to this development and called it a “pump.” This is when a company or exchange pumps a particular stock or token to entice investors to invest in the asset.
According to an analysis on September 29, 2023, by the market analytics platform Santiment, large Tether holders, referred to as “sharks and whales,” appear to be accumulating power. Santiment stated that this combination of trends is typically positive for the market.
This came after the United States Reserve disclosed the asset as a “source of financial instability.” Supporting this claim, as of September 21, 2023, CCData claims that Stablecoin is experiencing a 17-month value decline. Investors have been considering other traditional assets due to this development.
The U.S. Reserve further said that the assets are susceptible to wider crypto market downturns as well as isolated stability issues that are specific to individual stablecoins.
Tether has spurred a lot of controversies among officials in lawsuits plaguing the crypto industry. Recently, the U.S. Securities and Exchange Commission vs. Binance ended in a heated argument that in an effort to consider stablecoins as securities or not.
In spite of all the shakedowns and regulations in the crypto industry, Tether is standing strong with a rise in USDT stablecoin loans in 2023.