Tether Treasury receives two $50M USDT bundles from Bitfinex
Two 50 million Tether (USDT) transactions were transferred from Bitfinex to the “Tether Treasury” address, according to reports from Whale Alert.
Both transactions took place on October 2, 2023, two minutes apart. The first total of 50 million USDT occurred at 9:43 am UTC and was worth $50,039,125. The second was at 9:45 am UTC and was worth $50,038,875.
According to data from CryptoQuant, stablecoin exchange holdings in the period from November 2022 have gradually decreased over the previous year.
Before the downturn, around early 2021, stablecoin holdings on crypto exchanges hit a new all-time high (ATH), with coins like USDT flooding in.
These new market conditions have prompted comments from the crypto community, with X (formerly Twitter) reacting to the massive transfers by calling them a “pump”. This refers to issuing a stock or a certain token to convince investors to buy into that particular asset.
However, on September 29, market intelligence platform Sentiment posted about market trends, including the opinion that Tether “sharks and whales” are gaining buying power, saying it is a “generally brutal combination.”
#Bitcoin's sharks and whales, which we define as 10 to 10K $BTC wallets, are now stocked with the highest amount held in 2023 (13.03M$BTC). Also, #Tether sharks and whales are accumulating purchasing power. This is a total #bullying combination. pic.twitter.com/dIcq1sUNJY
— Santiment (@santimentfeed) September 28, 2023
Related: Tether reportedly shuts down USDT redemptions for some Singaporean customers
According to Cointelegraph's own analysis, stablecoins are experiencing a 17-month decline, with investors shifting to traditional assets.
This came on September 28 when the US Federal Reserve called the assets “a source of financial instability”.
The findings show that “stablecoins are vulnerable to a run during broad crypto market volatility as well as during exceptional stress events,” he said.
The allegations that this asset class is plaguing the crypto industry have been a big talking point for authorities. In US Securities and Exchange Commission vs. Binance case, USD Coin (USDC) Issuing Circle recently argued that stablecoins are not securities.
Despite this, Tether has seen growth in USDT-based stablecoin loans in 2023.
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