Tether Shakes the Market with a Mint of 5 Billion Dollars in Just Five Days

Amid political entanglements, accusations of opacity, and ongoing investigations, the influence of the stablecoin on the crypto ecosystem continues to grow.

Stablecoin issuer Tether has minted over $5 billion in just five days.

This development, which occurred between November 6 and 10, saw a massive injection of liquidity into the cryptocurrency market, sparking questions about reserves, transparency, and political implications.

The issuance was accompanied by a rapid increase in the value of Bitcoin, which reached new all-time highs, pushing the crypto ecosystem to record levels.

However, the impact of this huge mint extends beyond the market movements, highlighting deeper issues related to the governance of Tether and its growing geopolitical influence.

One of the most controversial aspects of Tether’s activity is its connection to Howard Lutnick, the CEO of Cantor Fitzgerald, which holds a 5% stake in the stablecoin.

Lutnick, who was a prominent figure in Donald Trump‘s political transition team, has publicly defended Tether, but without providing any concrete evidence on the solidity of its reserves.

This connection has attracted the attention not only of cryptocurrency enthusiasts but also of regulators and political observers.

The appointment of Lutnick as a potential Secretary of Commerce in the Trump administration raises further questions about possible conflicts of interest and the potential political influence on Tether’s operations.

Despite the criticism, Cantor Fitzgerald has become a strategic banking partner for Tether at a time when many global banks have distanced themselves from the stablecoin.

This role strengthens Lutnick’s position as a central figure in the management of reserves and in the financial stability of Tether.

Impact on the market and transparency under accusation

The minting of $5 billion has brought Tether’s market capitalization to over $132 billion, cementing its position as the dominant stablecoin.

This increase coincided with a rally of the main cryptocurrencies, including Bitcoin, which surpassed the $80,000 threshold and is now approaching the historic milestone of $100,000.

However, the lack of transparency of Tether continues to raise concerns.

Despite the attestation reports released by BDO Italia, many industry experts, such as Justin Bons of Cyber Capital, have questioned the credibility of Tether’s reserves, describing it as potentially more risky compared to other institutions that have already collapsed in the past.

The Commodity Futures Trading Commission (CFTC) and the New York Attorney General’s office have already fined Tether in the past for false statements about reserves and suspicious financial operations.

Despite these sanctions, the stablecoin has continued to dominate the market, with a share exceeding 75% of the stablecoin sector.

Moreover, Tether recently announced a strategic investment of $100 million in the South American agricultural company Adecoagro, acquiring a 9.8% stake.

This step has raised further questions about the governance of Tether and the opacity of its investment strategies. Sean Lee, co-founder of IDA Finance, emphasized how the absence of detailed transparency threatens the trust of the ecosystem.

To these criticisms are added the statements of many observers who demand greater guarantees on Tether’s financial operations, considering them fundamental for compliance with regulations and for market stability.