You must have seen the news about Tether continuously printing USDT recently, and the number of each printing is very large. So what does this mean for the market? ———————————— ***Tether’s escrow mechanism*** Tether always ensures every USDT issued is backed by 1 USD in Tether’s Reserve. Tether’s reserve fund is made up of many components. As reported by Tether, the Reserve Fund has the following composition: 82% of the Reserve Fund exists in the form of cash and cash equivalents and other valuable papers, 5% of corporate bonds, certificates funds and precious metals, 8.73% secured loans, and 4% other investment instruments. ***Capitalization of Tether – USDT*** Currently, the capitalization of USDT is at $79B, an increase of more than $15B compared to 3 months ago. Currently, this market capitalization of USDT is approaching the ATH mark, since the Terra event. If we count money printing alone, the number is somewhere around $5B. ***Impact of money printing*** Looking at the composition of the reserve fund, we can understand that Tether only prints money if and only if that Reserve has a corresponding amount of new fiat money . This proves that an amount of money somewhere around $5B has been poured into the Crypto market. The more new coins are printed, the more new coins from the market are pushed straight into the market via Tether itself. This proves that the attraction and interest in the Crypto market is growing again. It should be remembered that during the period of August-September 2020, Tether’s capitalization increased from $12B to $15B, ushering in a golden age for the whole market. With the view of mini-uptrend from the beginning of the year to now, the continuous increase in Tether’s capitalization reinforces this view. With the above numbers, we all have to admit that the Crypto market is benefiting from cash flow.
Source: Collector
