Tether CEO Shuts Down Rumors of a Tether Blockchain, Citing Neutrality Stance

Tether CEO Paolo Ardoino shut down rumors of a Tether blockchain, declaring, "Tether is not planning to build an official blockchain at this time."

Despite rumors circulating about a potential Tether blockchain, the company has shut down the speculation, stating that Un₮ethered will not be getting its own chain anytime soon.

Instead, the stablecoin giant is focusing on integrating USDT on various networks to support decentralized use cases.

The rumors stemmed from the company’s market dominance and the attention it attracts from regulators. However, Tether’s CEO attributed the delay in a planned announcement to the upcoming election.

USDT, pegged to the US dollar, is the largest stablecoin by market cap, valued at over $118 billion. It dominates the stablecoin market with a 75% share, serving as the primary fiat gateway in the crypto ecosystem.

USDT enables traders to quickly move in and out of crypto on various exchanges, creating a bridge between digital assets and fiat money.

One of the latest network integrations saw Tether launch USDT on The Open Network (TON), rapidly pushing its supply on TON to over $1 billion shortly after launch.

Regulatory Scrutiny and Impact on Tether, USDT

Tether has faced regulatory scrutiny, with investigations looking into the company’s possible involvement in money laundering and sanctions violations, which had traders on edge.

These probes sparked waves in the market, especially considering the market sensitivity to anything tied to Tether. When news of the investigations broke earlier this year, USDT briefly dipped below its dollar peg.

Moreover, Tether’s transparency issues have been an ongoing concern. Its last full audit was in 2021, leaving investors飢渴 for more up-to-date insight into the company’s financial health.

Some critics, like Justin Bons, founder of Cyber Capital, went as far as calling Tether a “scam,” accusing it of lacking sufficient reserve backing and comparing it to “printing counterfeit money.”

As a result, there has been increasing market chatter about Tether governance and whether it would benefit from a more transparent structure, such as its own chain.

However, despite the external pressure, Tether maintains its stance against having a blockchain.

Accusations of Manipulation, Tether’s Response

Throughout the conversation, there have also been waves of accusations that USDT is used to manipulate crypto prices, especially Bitcoin. However, the company has refuted these claims, calling them “reckless and false.”

According to Tether, the suggestion that USDT is issued to inflate prices shows a lack of understanding about the stablecoin’s role in the market.

Tether’s general counsel argued that such allegations fail to grasp the basic dynamics of how USDT interacts with crypto markets.

One high-profile study by John M. Griffin and Amin Shams suggested that Tether’s issuances drive Bitcoin prices, which drew criticism from Tether. The company called the study “fundamentally flawed.”

According to Tether, the authors used limited and cherry-picked data, lacking accurate transaction details and exchange flows, which influenced their conclusions.

Tether argued that the patterns could just as easily represent legitimate purchases as unbacked issuances by the company.

The company maintains that every USDT token is fully backed by reserves and that it is issued based on market demand, not for price manipulation.

They emphasized that USDT’s issuance reflects utility and acceptance across exchanges, not attempts to meddle with prices.

In legal battles, Tether and Bitfinex, its affiliated exchange, contend that the accusations against them lack evidence. According to Tether’s legal team, the plaintiffs alleging coordinated price inflation through USDT have failed to present sufficient proof.

Tether maintains that the growth and issuance levels of USDT correspond to its utility and demand in the market, not any behind-the-scenes manipulation.