Binance CEO, Changpeng Zhao, admitted that there are always concerns when it comes to Tether. He was giving his opinion during a recent conference held in South Korea and responded to a query on the relationship with the controversial stablecoin. Significantly, the exchange is one of the biggest holders of the digital currency. The virtual asset is ranked as the tenth biggest coin in terms of market cap though it is trading less than $1 currently.
Other Stable Coins
During the conference, Ran Neu-Ner asked Binance CEO how the exchange would get impacted if Tether crashes because of being the biggest holder. Responding to this, Zhao pointed out that fiat currencies have witnessed a sharp drop in the past. He believes that such a drop-down would have been much more than one would have seen in digital currencies price. However, that did not deter him from accepting the concerns about Tether and indicated that it was because of this reason; other stable coins are also listed.
Zhao disclosed that the exchange is engaged in actively promoting other stable coins too. This included True USD or any other virtual asset. Last year in summer, the cryptocurrency exchange has introduced an initial coin offering (ICO). As a result, it was able to raise approximately $15 million from the market. The exchange has a presence throughout the globe and offers a multi-language and the current year is undoubtedly a busy one. That is because the exchange is on its way of earning $1 billion in 2018, which is their ambition.
Significantly, the digital currency exchange is involved with a number of initiatives as part of expanding its presence and business. For instance, Binance has invested in a bank based in Malta, and that is aiming to overcome the South Korean market. Aside from these, the exchange also aligned with Libra Credit. There was also a question on the link between Bitfinex and Tether. That is because of accusations of manipulation of bitcoin price, news.bitcoin.com reported.
There are also others who are attributing the complete price run up to Tether’s inflation though there is also opposite opinion to that. Responding to the questions, Zhao pointed out that he could not see the bank accounts personally. However, he pointed out the logical point of view in which there are several profits from other normal exchange business. Therefore, he believes that there was no need for them to do any such crazy thing on Tethering.
Binance CEO said, “I think the reason they cannot release their bank account details is that if they release whichever bank they’re using, then the bank account gets shut down.” Incidentally, accusations against the stable coin have somewhat slowed in the middle of the current year. Still, there is one more study pointing out a collision course and this time it is Tether and Kraken.
However, Kraken digital currency exchange was not ready to accept the allegations and blasted the report saying that they knew little about how the exchange is working. Interestingly, Tether has brought in a person to manage its compliance division primarily to assuage future fears.