The massive $2.27 billion bitcoin transfer that occurred on Monday has led to the emergence of fanciful theories that Tether might be creating a private dark pool for future USDT issuance.
The Facts: Bitcoin Whale Moves $2.27 Billion in Six Hours
Monday (July 29, 2019) turned out to be an eventful day in the bitcoin scene. “Fiach_Dubh” a pseudonymous writer for Coinmonks – a technology-focused publication – has woven an intricate plot that ties together several of the major happenings from Monday.
In a Medium post published on Tuesday (July 30, 2019), the Coinmonks writer alleged that yesterday’s massive BTC movement and the launch of Tether on the Liquid Network are part of an elaborate scheme.
Tweeting on Monday, Whale Alert, a Twitter bot that tracks large crypto transactions, revealed five massive bitcoin movements. Each transaction was worth more than $448 million in bitcoin making a total of $2.27 billion.
As reported by Bitcoinist, Tether also went live on the Liquid Network leading to the emergence of L-USDT. This announcement happened a few minutes after the third BTC transfer.
The Conjecture: Tether and Blockstream’s Liquid Network
The Coinmonks article theorized that Tether is the ‘Unknown Owner 26’ involved in the $2.27 billion transfer. For the writer, the timing of these seemingly separate occurrences goes beyond simple coincidence.
The argument put forward suggests that Tether plans to expand its stablecoin by taking a significant portion of the USDT market capitalization into the Liquid Network.
Probable Conclusion: An Attempt at Obscuring USDT Flow?
By so doing, the writer argues that Tether can now obscure the issuance of USDT. Such a conclusion creates the possibility for private stablecoin transfers,