Editor's Note: This article comes fromCaijingOnchain Finance (ID: CaijingOnchain), Author: Chen Yi, reproduced by Odaily with authorization.
Editor's Note: This article comes from
CaijingOnchain Finance (ID: CaijingOnchain)
CaijingOnchain Finance (ID: CaijingOnchain)
, Author: Chen Yi, reproduced by Odaily with authorization.
Recently, the USDT premium rate has continued to decrease, and it is currently reported at $0.9965
The negative premium is about 0.34%. According to market data, USDT has been in a positive premium state for a long time since March 12, after the USDT skyrocketed to $1.08 in a short period of time due to the sharp decline in the market.
According to analysis, there may be two main reasons why the USDT premium rate continues to decrease. One is that the recent market sentiment and entry sentiment have continued to weaken; the other is that Tether has continued to issue large amounts of USDT in the past month or so. This led to a sharp increase in the supply of USDT, which reduced the premium rate of USDT.
According to public data, the current circulation of USDT is about 6.3 billion pieces, and at the beginning of March this year, the market value of USDT was still around 4.6 billion US dollars.
In less than two months, USDT has issued nearly 2 billion U.S. dollars.
According to the information previously disclosed by STUART HOEGNER, the lawyer representing Bitfinex and Tether, in 2019, as of April 30, 2019, Tether’s cash and cash equivalents (short-term securities) held a total of approximately US$2.1 billion, approximately USDT at that time. 74% of the market value. That is to say, Tether does not have 100% asset reserves. Even if USD and other assets are mixed, the reserve ratio of USDT is still around 70%.
From this, it is not difficult to calculate that in the past two months, the USDT issuer has made a profit of at least 600 million US dollars through additional issuance.
And it remains to be verified how much demand is behind the short-term massive issuance of USDT. A market analyst pointed out that after the collapse of the BTC currency price, the market trading atmosphere has dropped significantly, and the enthusiasm of investors to participate has been greatly reduced. Therefore, there are not many demand-level factors behind the additional issuance of USDT.
