4.8 C
26 February 2024
Image default

Paolo Ardoino on Why Tether (USDT) Is Not Consolidated Alongside Other Books

There was a lot of criticism doing the rounds about the Tether printing spree the past month. Paolo Ardoino stated that the crypto exchanges wanted dollars on hand and stated that this demand led to the bringing of $5 billion USDT this year. Some even opine that the Tether printing spree might even touch $100 billion.

Paolo Ardoino is very clear that is not at all difficult to go from $0 to $200 or 300 billion, but he states that after surpassing $100 billion and more, it gets very complicated to deal with banks. He also recollected how Tether lost $750 million of its reserves when the Panamanian bank was seized by law enforcement.

Sydney Ifergan, the crypto expert tweeted: “Now, we know very clearly than ever that anytime there is a cash craving in exchanges following a market crash more of Tether USDT will be printed.”

Paolo Ardoino in the past stated, “I believe that Tether is absorbing part of the cash wealth that is sitting in cash in bank accounts on many other exchanges.”

Reportedly, about 39 ETH addresses which had more than 7.9 million USDT were blacklisted recently. 

Per Whalepool AMA with BitFinex and Tether CTO, Paolo Ardoino was asked:  You have this feature, where you consolidate liquidity across books, why don’t you add Tether to consolidate USD, USDT alongside other books?

Paolo Ardoino opined that is a good idea, I think it could be done, but the reason why we didn’t do in the first place was that when Bitfinex in 2018 and 2019 decided to remove the peg between 1 dollar and 1 USDT, then there was only one other exchange that was offering a market for USD – USDT – so it took a lot of time to remove the peg between 1 USD and 1 USDT. 

Then, there was only one other exchange that was offering a market for USD, USDT – it took a long time in order to gain enough liquidity.  And, also I wouldn’t say that liquidity for USD and USDT cannot be called super.  He states it is much lower than in the Fx market and in old exchanges right now. He thus stated, So, I think that is one of the reasons. 

With the FX markets you can sort of adjust the effects once in a while; however, with Tether you will need to do it more frequently because the liquidity that is on the USD and USDT pair is much lower.

News Source

Related posts

Binance Suspends U.K Ramping Stirring Suspicions Of A Crypto Crackdown


Dogecoin ($DOGE) Creator Sold His Crypto in 2015 ‘To Buy a Used Honda Civic’


Cardano: Update on Shelley’s progress, ADA price extremely bullish