Binance CEO spoke about the situation with Tether

The founder of the crypto exchange, Changpeng Zhao, expressed his opinion on Tether (USDT) as part of the Korea Blockchain Week conference, noting that the situation may be cause for concern.

As a cryptocurrency “pegged” to the dollar, the Tether project seems dubious to many. It was even called a “time bomb” after Bitfinex was caught creating USDT (Tether dollar) without the required reserve in US dollars. Not long ago, critics questioned the size of Tether's dollar reserves, as a result of which it became the subject of close attention of the crypto community.

It is not surprising that journalists are very interested in forecasts regarding the stablecoin, especially the crypto exchange Binance, the largest holder of Tether.

During Korea Blockchain Week, the head of Binance, Changpeng Zhao, gave an interview about the impact of the 10th largest cryptocurrency on the operation of the exchange. 

First of all, Zhao noted that now on his platform Tether is traded with virtually all major digital currencies, such as BTC, ETH, BCC, ADA, etc. And although the situation around the stablecoin may be cause for concern, it is no more complicated than that of other cryptocurrencies. So, when asked about the consequences for the platform of a possible fall of Tether, the head of Binance replied that the consequences are no greater than with the collapse of any other cryptocurrency. At the same time, according to the CEO, this formulation of the question is not entirely correct. Financial markets are always associated with certain risks. And we know of cases of depreciation and hyperinflation of fiat currencies. And there are many more such examples in the global economy than in the crypto market. Yes, there are always risks, so the exchange is expanding its listing and adding other stablecoins, for example, TUSD. This will dilute the potential risks of trading.

Zhao is also not confident in Bitfinex and Tether’s manipulation of Bitcoin prices. If we use facts and logic, then according to Changpeng, the profit generated by Bitfinex daily trading is high enough to risk it and resort to manipulation with Tether. And the reluctance to disclose the bank used is fully explained by the confidentiality conditions of the cooperation agreement with the bank.

Changpeng Zhao mentioned a recent meeting with the Bitfinex team and, although he himself did not see the state of their bank accounts, he nevertheless does not consider last year's accusation to be artificial serious overvaluation of Bitcoin prices.