Tether Treasury Received $100M From Bitfinex Exchange

Tether reserves increase by $100 million from Bitfinex transaction, utilizing Ethereum and Tron blockchains.

Oct 3, 2023 - 12:33
Oct 3, 2023 - 12:33
Tether Treasury Received $100M From Bitfinex Exchange
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On October 2, 2023, the reserves of Tether experienced an increase of $100 million, attributed to a transaction from Bitfinex. This amount was transferred in two separate tranches, each worth approximately $50 million. The first transaction, valued at about $50,039,125, was executed at 9:43 a.m. UTC. Merely two minutes later, the second transaction, valued at $50,038,875, was completed. Interestingly, these transactions utilized two different blockchains - Ethereum and Tron.

Stablecoin holdings, especially in exchanges, have been on a decline since November 2022. Before this downturn, the early months of 2021 saw stablecoin holdings, including USDT, reaching an all-time high on crypto exchanges. This influx of USDT and other stablecoins was a testament to their growing popularity and adoption.

Stablecoin holdings on exchange reserves 2023. (Source: CryptoQuant)

However, the decline that began in late 2022 has raised concerns. Some traders, voicing their opinions on platforms like X (previously known as Twitter), have labeled the massive transfers as a "pump." In the crypto terms, a "pump" refers to the act of artificially inflating the value of a stock or token to attract investors.

An analysis by the market analytics platform, Santiment, on September 29, 2023, shed light on an intriguing trend. Large Tether holders, often referred to as "sharks and whales," seem to be consolidating their positions. According to Santiment, such a trend typically bodes well for the market, indicating a bullish sentiment.

However, the United States Federal Reserve, on September 28, labeled these assets as potential "sources of financial instability." This statement was backed by findings that highlighted the vulnerability of stablecoins during broad crypto market dislocations and specific stress events related to individual stablecoins.

Furthermore, the role and classification of stablecoins have been a significant point of contention in legal circles. For instance, during the U.S. Securities and Exchange Commission's case against Binance, there was a heated debate about whether stablecoins should be classified as securities. Circle, the issuer of USD Coin (USDC), argued against this classification.

Philip Bohmer Philip is a seasoned journalist that brings clarity to the complex world of cryptocurrencies through his articulate and insightful articles. His passion for blockchain technology fuels his writing, making him a trusted voice in the rapidly evolving digital currency landscape.