CEO Of Binance, Changpeng Zhao Expresses Worry For Tether’s Downward Trends
The Korea Blockchain Week event housed crypto and blockchain leaders, including the CEO of Binance, Changpeng Zhao. A segment of the event addressed the continuing fall of Tether (USDT), a stablecoin pegged onto the US dollar.
Binance being a well-established and first mover cryptocurrency exchange, its CEO, Zhao definitely believes that the downfall of Tether is alarming and could directly influence the crypto exchange itself. In particular, CryptoTrader’s Ran NeuNer asked for Zhao’s projection as to what type of risk the Tether (USDT) might pose, he replied:
“We have seen fiat currencies go down in history […] more times than they have been in cryptocurrencies. So yes, the concern is always there.” He also added that instead of focusing on supporting one type of stablecoin, the crypto exchange is in the process of listing many others, giving the instance of their listing of “TrueUSD”.
Another relatively large crypto exchange, Bitifinex was mentioned during the discussion, and Zhao also gave his perspective of the former’s current situation to Ran NeuNer, where he said:
“I haven’t personally seen their bank accounts but, from a logical point of view […] They have so many profits from their regular exchange business, they don’t need to do anything crazy about the Tethering […] If they release whichever bank they’re using, then the bank account gets shut down.”
The last point was made in projecting the reason why Bitfinex is not insisting on disclosing its bank account information.
As per Coin Gape’s reporting, Bitfinex has been under a lot of scrutiny, as the crypto exchange was accused of manipulating bitcoin prices in December, when every other exchange had depicted one that was falling in value.
This particular accusation comes from the University of Texas at Austin’s finding, where John M. Griffin and Amin Shams, both of whom have an eye for fraudulent scams and related details, released the specs on a report dubbed, “Is Bitcoin Really Un-Tethered?” The paper pointed fingers at Bitfinex for creating “fake demand for bitcoin by buying up the virtual currency and keeping its price up […]”
It was also noted that the presence of Tether moved in the same direction as cryptocurrency prices, explicitly comparing it to “the inflationary effect of printing additional money.”