Charlie Lee Says Tether’s 250 Million USDT Issuance May Be “Precursor” of Price Increase

 

 

Tether issued 250 million new USDT tokens on Monday, according to multiple media outlets. Litecoin founder Charlie Lee suggested on Twitter that the move could indicate that new capital had entered the crypto markets and said that large releases of new Tether have generally “been a precursor of price going up.”

According to Lee, the token release is comparable to someone “depositing $250MM to exchanges.” He suggested that the new tokens would be used to purchase other cryptocurrencies on those exchanges but noted that there’s no guarantee that those purchases will be made immediately.

The release comes amid new questions about Tether’s possible role in alleged Bitcoin price manipulation late last year. Tether has denied those allegations. Additional questions have been raised about the company’s claims that all Tether tokens are backed by U.S. dollars, though Tether tried to mitigate those concerns with the recent release of a law firm report that seemed to support its claims.

Meanwhile, Bitcoin’s price recovered from its recent 2018 lows to about $6,250 at press time.

 

Author: Ken Chase

Freelance writer whose interests include topics ranging from technology and finance to politics, fitness, and all things canine. Aspiring polymath, semi-professional skeptic, and passionate advocate for the judicious use of the Oxford comma.

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