According to Whale Alert, Tether Treasury sent 29 million of USDT to Binance during the last 3 hours. The transaction divided into two smaller payments of 15 and 14 million USDT. 29 million USDT maybe isn’t a huge sum in the crypto market. However, Binance cryptocurrency exchange now holds by far the most Tether with the amount of roughly 2 billion in their cold storage.
According to Tether’s rich list, Binance’s Tether supply comes from both Ethereum’s ERC20 and Tron’s TRC20 tokens. As a comparison, the Tether Treasury only has 760 million of USDT left on their addresses.
Yet, these small amounts weren’t the only transactions between the two entities during the last couple of days. By looking closely at Whale Alert’s Twitter channel, we realized that USDT was, in fact specially minted for Binance. As it seems, immediately after Tether Treasury minted the new 500 million coins, transactions started flowing both ways.
This was not the end of the “Tether flow”. The same addresses were used to process more than a few smaller transactions between the exchange and the USDT supplier. By smaller, we mean tens of millions. Looking at the insane hyperproduction of Tether, one question arises. Where does all the demand for Tether come from?
When do Traders Need Tether (USDT)?
Cryptocurrency traders need USDT or any other stablecoin when they want to stay out of the game in spot markets. In other words, investors transfer their funds into a stablecoin when they think that the market is turning bearish. Therefore, maybe Binance, with its huge USDT stash, only wants to be prepared for all possibilities. On the other hand, maybe they are planning to be more active with their Tether. But, these are all needless speculations, aren’t they?
The fact remains that Binance is at the very top of the Tether rich list with roughly 2 billion USDT “SAFU” in their storage. In the meantime, the overall trading volume recorded on Binance spot exchange during the last 24 hours is $8.5 billion on 644 markets. The reported trading volume dropped by 17% on Binance in the last day, which is not a great sign. Since we already stated that there is no new money coming into the market, either Binance is ready for a sell-off or USDT is there to “support” the faded rally.
Either way, this is not the only sign traders should be aware of.
Tether Treasury Isn’t The Only One Raising Suspicion
On the other side of the crypto specter, relatively large amounts of Bitcoin and altcoins are flowing from unknown wallets towards various exchanges. For example, only a few hours ago, 1,000 BTC (roughly $11.7 million) were transferred from an unknown wallet to Coinbase cryptocurrency exchange.
While $11 million isn’t enough to cause a bigger commotion, a sum of all recent transactions similar to this one might be a thing to worry about if you are a crypto holder.
We can conclude that something is definitely going to break the status quo we are currently witnessing in the market. Will it be for better or for worse, remains to be seen. However, it would be interesting to check Tether’s financial report and see if they have some real backing for the total supply of USDT.
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