Cryptos: Are dollar-linked stablecoins soon to be banned in the EU?

Crypto exchange FTX is currently in trouble, following a revelation from CoinDesk. On Nov. 8, Binance CEO Changpeng Zhao said his exchange is exploring the possibility “to fully acquire FTX and help cover the liquidity shortage“. At the same time, it appears that Tether and Circle could be linked to FTX. Here is what the technical director of the Tether company says.

Paolo Ardoino says Tether is not related to FTX in any way

This November 9, crypto journalist Colin Wu make a post on Twitter regarding the FTX case. He stated : ” Circle and Tether should further disclose their financial relationships with FTX and Alameda so their users know if there is a risk “. ” We see a lot of assets moving from Circle to FTX; there are also reports that Alameda is the second largest Tether issuer»he pointed out.

Two hours after Colin Wu’s post, Paolo Ardoino, CTO of Tether, reacted denying the allegations. Ardoino said that the stablecoin company is not exposed to FTX in any way or in Alameda. ” 0. Draw. It may be time to look elsewhere. Sorry guys. try again“, he concluded.

Paolo Ardoino’s reaction

Circle CEO talks about“Lehman Brothers crisis”

Lately, Jeremy Allaire, co-founder and CEO of Circle, commented on the insolvency crisis that the FTX exchange is facing. He then suggested that the situation is similar to the downfall of the multinational investment bankLehman Brothersin 2008.

As someone who has been involved in this industry for 10 years, I find it disappointing that a technology born in response to the Lehman Brothers crisis in 2008 has given rise to its own version of the same thing. We can do better“said the co-founder of Circle.

Jeremy Allaire also indicated that Circle’s USDC stablecoin is unaffected by this crisis. He clarified that Circle has complied with regulations in many parts of the world since 2014. Additionally, the company’s stablecoin would be fully backed by government bonds and cash.

According to Tether’s CTO, Alameda had issued and redeemed a lot oftokensUSDT. Nevertheless, “no credit exposure has matured“. Paolo Ardoino adds that the USDT stablecoin is “issued and redeemed at market demandby customers.

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