Binance CEO Changpeng Zhao Expresses concern with Tether
Changpeng Zhao, CEO of the world’s leading cryptocurreny exchange Binance, demonstrated the relationship between the firm and the controversial ‘stablecoin’ Tether in a conference in South Korea. As one of the largest holders of Tether, Zhao has expressed his concern with Tether.
Zhao considered that, logically, Bitfinex and Tether have been able to make large profits from their regular business, thus, they do not have to manipulate bitcoin price. He also indicated that, Tether may not release their bank account information in order to avoid their bank account gets shut down.
One question came form Crypto Trader’s Ran Neu-Ner who asked about the impact of a possible trther crash on Binance, and Zhao answered that:
“We have seen fiat currencies go down in history a lot. Probably more times than they have been in cryptocurrencies. So yes, the concern is always there and that’s also why we’re listing other stable coins as well, so we actively promote other stable coins including True USD and others.”
In addition, a lot of experts in the cryptocurrency industry believe that Tether and Bitfinex have been manipulating bitcoin price for a long time. Some of them even attributing the entire price run-up of bitcoin in 2017 to Tether’s inflation.
Zhao has also commented on this issue: “I haven’t personally seen their bank accounts.But from a logical point of view they have so many profits from their regular exchange business, they don’t need to do anything crazy about the Tethering. I think the reason they cannot release their bank account details is if they release whichever bank they’re using, then the bank account gets shut down.”
Actually, the accusations against Tether have slowed and reduced during the middle of this year. However, there is another study suggests a Tether collusion with crypto exchange Kraken while the exchange launched a strong attack on the journalists that of their little understanding of its business works.
Further more, Tether has brought in an establishment figure to head its compliance division in last month. This initiative can be seen as an effort to diminish future fear.