In a recent social media exchange, RunnerXBT asked the question that is burning on crypto aficionados' lips: “ Will Tether ever allocate a percentage of its profits to ETH or is it a lost cause? ” Paolo Ardoino, CEO of Tether, responded bluntly: ” Bitcoin first! ” Let's find out why this company is betting everything on the crypto star, leaving Ethereum on the sidelines.
Why Tether Swears By The Flagship Crypto
Paolo Ardoino, head of a crypto company valued at over $100 billion, does not mince his words. For him, Bitcoin is the Holy Grail of Crypto.
” Bitcoin is immutable. Only 21 million coins. Easy choice. ” he hammered home.
In other words, why bother with Ethereum when you can bet on a safe bet? Last year, Tether announced thatShe would invest 15% of her profits in Bitcoin to strengthen its reserves.
With a record profit of $1.3 billion in the last quarter, Tether hasn’t changed course. Ardoino even confirmed that Bitcoin purchases were made through their investment arm in 2024.
The issuer of the USDT stablecoin isn't just playing the conservative game. The company is also exploringother ambitious projects :
- $627 million investment in bitcoin last April;
- Gold-backed stablecoin Alloy launched;
- Exploring decentralized artificial intelligence.
And in the meantime, Ethereum continues to struggle.
Bitcoin: Tether's star faces a failing Ethereum
You might think thatEthereum, with all its hard forks and promisescould appeal to Tether. Not at all! Since the Merge update in 2022, Ardoino has been constantly highlighting Ethereum's shortcomings.
” Ethereum changes its narrative like a shirt ” he said with a smile.
And the numbers prove him right: Since December 2021, the ETH/BTC pair has fallen by 45%.
Even Ethereum's recent boom in May, driven by the approval of various ETFs, was not enough to reverse the trend.
L'Ethereum price future will depend on inflowswhich so far have not lived up to expectations, partly due to Grayscale's product releases.
Faced with this uncertainty, Tether prefers Bitcoin's security and long-term growth potential.
In conclusion, with a record profit of $5.2 billion in the first half of 2024, Tether remains firmly committed to its Bitcoin strategy, leaving Ethereum for the dreamers and the undecided.
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