Earth Implosion (LUNA) Proves Value of Centralized Stablecoin, Says Tether CTO – Money Times

In a statement to Crypto Times, Tether CTO reinforces that USDT is sovereign in the market (Image: Unsplash/DrawKit Illustrations)

The prices of tokens from the Earth network — MOON and the stablecoin UST — are in free fall, and the network design appears to be falling apart.

THE UST is algorithmic stablecoin which should be on par with the dollar. A combination of burning mechanisms involving MOON should keep the ballast of UST.

However, in recent days, the mechanism has stopped working amid the slump in the cryptocurrenciescausing investors to tokens of the Terra network to run to leave the project behind.

A common discussion in the market is about which stablecoin more reliable to use: decentralized and algorithmic ones, such as Terra, or rely on centralized ones – which have a custodian company behind the assets – such as Tether (USDT).

Amid the recent fall of the UST, Paolo Ardoino, CTO of Bitifinex and tetheradvocated greater reliability of centralized stablecoins.

“Unlike these algorithmic stablecoins, Tether has a strong, conservative and liquid portfolio consisting of cash and cash equivalents such as short-term treasury bonds, money market funds, and holdings of commercial paper from A-2 rated issuers. and above”, said Ardoino, exclusively, to the Crypto Times this Wednesday (11).

Ardoino says he does not believe that the situation in UST mean something to the centralized market for stablecoin. For him, they are totally different types of assets.

“Centralized stablecoins make the crypto economy much more efficient, putting dollars into a blockchain and are being used to innovate everything from the digital payment space to e-commerce purchases and even facilitating transactions in decentralized financial ecosystems,” he says.

According to him, there will always be a market for stablecoinsas they present an opportunity for traders to interact with the larger crypto ecosystem.

“Tether itself is a resource for the unbanked, a tool for an evolving payment system, and a leader in driving widespread adoption of a new financial revolution.”

He says he expects Tether’s growth to continue this year and next. With companies like Airbnb and PayPal exploring payment options with cryptocurrencies and integrated into their existing platforms, “the public can see that the stablecoins play a role in these technology stacks, whether using existing stablecoins or creating new ones.”

In recent years, he says he’s seen stablecoins being used to enter and exit trading markets, but that they have a utility that goes far beyond the trading ecosystem. cryptocurrencies. For him, “thePayments may well be the next frontier for growth.”

“On the company side, Tether is pleased that the market continues to show its trust and confidence in Tether: the first, largest and most transparent, innovative and liquid stablecoin.” Ardoino ends by saying that this is a rapidly evolving industry that is working with new technologies: “There will always be innovations as the industry learns from these events together.”

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