Binance CEO talks about concern with Tether

Binance CEO talks about concern with Tether

In a conference in South Korea, Changpeng Zhao, the Binance CEO answered questions about the company’s relationship with the controversial stablecoin Tether. While Binance is one of the largest holders of Tether, he said that the ‘concern is always there’.

One of these questions came from Ran Neu-Ner who asked about the impact of a possible tether crash on Binance. Mr. Zhao responded to this,

We have seen fiat currencies go down in history a lot. Probably more times than they have been in cryptocurrencies. So yes, the concern is always there and that’s also why we’re listing other stable coins as well, so we actively promote other stable coins including True USD and others.

Mr. Neu-Ner also asked Zhao questions about the relation between Bitfinex and Tether. A lot of experts in the cryptocurrency industry have accused both of these of Bitcoin price manipulation, with some people going to the extent of actually attributing the entire price run-up of Bitcoin in 2017 to Tether’s inflation, however, another study gave an opposing revelation.

Mr Zhao commented on this as well. 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. I think the reason they cannot release their bank account details is if they release whichever bank they’re using, then the bank account gets shut down.

As opposed to this interview, the general criticisms against Tether have slowed during the middle of the year. However, another study suggests a Tether collusion with Kraken to which the exchange took to its blog and accused the media and journalists of understanding little about how the industry works. Furthermore, last month, Tether brought in an establishment figure as a head of its compliance division, perhaps in efforts to diminish future fear.

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Pallavi Janiani

Pallavi Janiani

Content Writer
I am studying Business and psychology at the university of Minnesota. Apart from learning about how the economy and the human mind works, I spend my time dancing with my bollywood fusion team, reading, writing, traveling, usually with a cup of coffee in my hand.