October 20, 2023 marks a major turning point in the history of Tether. The recently promoted CEO of the crypto company Tether, Paolo Ardoino, has indeed announced a radical measure that could reshape the perception of stablecoins. The move comes after recent fines and controversies. It promises to bring a wind of change to the world of crypto assets.
Tether implements new strategy to promote transparency
The controversial Tether (USDT) crypto issuance has long raised doubts about its underlying financial reserves. But, Ardoino is committed to publish real-time reserves data in 2024.
Already well known as CTO, Paolo Ardoino will take on the role of CEO of Tether in December 2023. This promotion is accompanied by the crypto company’s commitment to increasing its transparencywhich has often been questioned.
Bloomberg particularly emphasizes the lack of openness of the crypto company Tether concerning :
- its reserves,
- its public operations,
- the independence of its board of directors,
- its overall structure.
The publication of real-time data on reserves is therefore a crucial step towards resolving these concerns.
The Controversial Challenges of a Rising Crypto
Crypto company Tether’s reputation was stained in 2021 when the Commodity Futures Trading Commission (CFTC) fined $41 million. The reason given: misleading statements about the total support of the crypto USDT to the US dollar.
That’s not all ! Tether also found itself obliged to settle $18.5 million lawsuit with New York attorney general. The crypto case involved allegations of false claims of support for USDT.
Despite these controversies, the crypto USDT has saw its circulation increase during the bear market. Its rival, USDC, has seen a decline.
Ardoino’s plan to publish crypto reserves in real time in 2024 promises to clarify lingering uncertainties around Tether. However, some remain skeptical that this promise will come true. In any case, the initiative marks an effort to restore confidence in the stablecoin sector.
Receive a summary of the news in the world of cryptocurrencies by subscribing to our new servicedaily and weekly so you don’t miss anything of the Tremplin.io essentials!