During a recent conference held in South Korea, Binance CEO Changpeng Zhao answered questions about the company’s relationship with the controversial stablecoin Tether. He acknowledged that, according to regional reporting, “there are always concerns”. Binance is one of the largest owners of Tether.
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Binance CEO Voices Concerned About Tether
According to Anca Faget from Romania CoindooBinance CEO Changpeng Zhao answered questions about the company’s relationship with the controversial stablecoin Tether. One question came from Ran Neu-Ner, who asked about the effects of a tether crash on Binance.
Mr. Zhao replied, “We have seen fiat currencies go down in history a lot. Probably more often than in cryptocurrencies. Yes, the concern is always there and that’s why we list other stable coins as well. That is why we are actively promoting other stable coins including True USD and others. “
Binance launched its first coin offering last summer, bringing in around $ 15 million. It is a cryptocurrency exchange aimed at a multilingual international clientele. This year has been a busy year for exchanges. On the way to one very ambitious goal Binance to make $ 1 billion this year invested is in a Maltese bank to attempt to capture the South Korean market, and recently teamed up with Libra Credit.
Tether and Bitfinex
Mr. Neu-Her also asked about the connection between Tether and Bitfinex. Many in the ecosystem have long accused both of manipulating the price of Bitcoin, with some actually attributing that total price increase from 2017 on Tether’s inflation (however, another study came to the opposite conclusion).
“I haven’t seen their bank accounts in person,” assured Zhao, “but logically they have so many profits from their regular barter business that they don’t have to do anything crazy about tethering. I think the reason they can’t reveal their bank account details is because if they release the bank they are using, the bank account will be closed, ”the CEO said at a Korea Blockchain event.
Ironically, allegations against Tether slowed towards the middle of this year. When another study suggested a tethered arrangement, this time between him and Kraken, the exchange hit his blog and blew up journalists he believed understood little about how his business worked. Last month, Tether brought in an office to run the compliance department, possibly to allay future fears.
How important is tether to the ecosystem? Let us know in the comments below.
Images via Pixabay, Binance and Tether.
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