Justin Sun Says New Partnership With Tether Will Make USDT More Reliable and Cheap
During a podcast with Rachel Wolfson, the CEO of Tron (TRX), Justin Sun, said that the new partnership with Tether will bring many enhancements to USDT. Wolfson is the host of “The Crypto Chick” podcast. During this episode, Sun talked about the new partnership with Tether and the importance of stablecoins in the market.
USDT Could Be Enhanced With Tron’s New Partnership
Sun explained that stablecoins work as other virtual currencies but they are not exposed to the market fluctuations. In general, these stablecoins are pegged to a specific fiat currency, for example, the US dollar in the case of Tether.
Virtual currencies such as Bitcoin (BTC) or Ethereum (ETH) tend to fluctuate according to supply, demand and different events that take place in the market. However, stablecoins have a stable value that does not fluctuate as other traditional virtual currencies.
Tether is the largest and most popular stablecoin in the space. It has a market capitalization of $2.09 billion and it is the 10th largest digital asset in the market. A few months ago, Tether announced that they were going to be moving towards the Tron network rather than keep their operations on the Omni blockchain.
With this partnership, Sun believes that USDT will be more reliable, faster and cheaper. Moreover, he explained that USDT has a similar blockchain as Bitcoin and transactions are expensive and it cannot scale to more than 300,000 transactions per day.
On the matter, he commented:
“The current solution is very obsolete which is extremely expensive, slow and unreliable for other stablecoins. So once we gain the USDT-Tron infrastructure, I think the whole Tron community and the whole blockchain community will benefit from the move away from Bitcoin.”
Tron is one of the largest digital currencies as well. At the time of writing this article, Tron has a market capitalization of $1.91 billion and is the 11th largest virtual currency in the space. Each TRX can be purchased for $0.0286.