Tether is "printing" billions. What does this even mean? 🤑

You often read in the news about the issuance of several billion USDT. The traditional reaction in the comments is: "They're just creating money out of thin air."

1️⃣ A major market participant (exchange, market maker, fund) transfers real assets to Tether;

2️⃣ Tether adds this amount to its reserves;

3️⃣ In response, an equivalent number of USDT is issued.

New tokens are issued after the collateral is received, not the other way around. Each new USDT is already backed by Tether's reserves.

➖ Demand for USDT from exchanges and traders is growing;

➖ Liquidity needs to be ensured as the market grows;

➖ Major players are injecting capital into the crypto infrastructure.

The more market activity, the more stablecoins are required for trading. But if demand falls, USDT is burned during the buyback process. It's a two-way process. Essentially, the issuance of USDT is an indicator of capital inflow into the crypto market.

#tetherUsdt #TetherTreasury #Write2Earn!

$USDT $USDC $BNB