Recently, tether has received a lot of controversy due to the oversupply of tokens. Surprisingly, tether at this time was not affected by the controversy at all. In the last Friday (May 18th), a batch of usdt tokens worth US$250 million was minted. Tether has always claimed it’s 1:1 ratio by US dollars. However, there does not seem to be any evidence to support this claim.
Some critics even pointed out that the price of certain specific cryptocurrencies will increase every time tether mints new tokens, such as Bitcoin. It is reported that after the launch of the new usdt, the price of BTC increased by 120 US dollars in one hour, which made many people have to suspect that USDT is used to raise the price of Bitcoin. And this kind of price trend will hurt the cryptocurrency industry to some extent.
From this point of view, usdt, as a so-called "stabilizing currency" is actually not stable at all. In my opinion, in addition to being stable in terms of price, the "stablecoin" must also be stable in terms of its circulation, at least has a certain limit, such as startcoin (the total supply of its token, start, is limited to 84 million), in order to prevent the phenomenon of speculation.