The most recent PSA from Ardoino is quite similar to one that occurred in September 2023.
Whale Alert, informed on December 25 that Tether Treasury has minted $1 billion USDT.
Another 1 billion USDT has been “authorized but not issued,” as stated by CEO Paolo Ardoino of Tether, the firm behind the stablecoin. Whale Alert, informed on December 25 via twitter that Tether Treasury has minted one billion USDT ($1 billion).
The CEO of Tether, Ardoino, then issued a public service announcement (PSA) in the twitter thread of Whale Alert, explaining that the transaction in question constituted an “inventory replenish” on the Ethereum blockchain.
Ardoino stated:
“Note this is an authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests and chain swaps.”
Not Part of Total Market Cap
Replenishing inventory involves, according to Tether, making fresh USDT and storing them in the treasury as “authorized but not issued” USDT. As they have not been issued or put into circulation yet, “these tokens are not part of the total market capitalization of USDT,” according to Tether’s FAQ.
There are $925 million worth of USDT that have been “authorized but not issued” on Ethereum as of December 26, 2023, according to statistics from the Tether Transparency page.
The most recent PSA from Ardoino is quite similar to one that occurred in September 2023, when Whale Alert brought attention to a transaction involving one billion USDT. While speaking about the USDT transaction, Ardoino clarified that it was an authorization rather than an actual issuance. The allotted amount would be used for future issuance requests and chain swaps on the Tron network.
Skepticism over Ardoino’s most recent PSA and the lack of transparency around Tether’s authorized but not issued transactions has been voiced by certain internet industry analysts.