At the 2024 Token2049 Dubai Conference, Paolo Ardoino, Tether’s CEO, discussed various topics with CryptoPotato in an interview. He touched upon AI, Bitcoin halving, newly-introduced ETFs, and USDT’s market dominance, among other subjects.
According to Ardoino, holding a position as CTO at BitFinex, he holds the view that stablecoins like USDT are primarily designed to benefit the underbanked populations rather than financially advanced nations such as the United States.
Bitcoin ETF/Halving Impact
The interview took place shortly before the April 20 halving at around midnight, and based on CryptoQuant’s previous analyses, Tether’s CEO believed that the event’s effects were becoming weaker.)
Due to the fact that over 19.5 million Bitcoins have previously been mined, the decrease in block rewards, which has lessened in significance compared to the time when it went from 50 Bitcoins per block to 25 Bitcoons per block.
Moreover, he pointed out that the upcoming halving is anticipated by many and they have been preparing for it prior. As a result, it’s likely that the price increase bitcoin experienced before the halving had already accounted for this event.
Ardoino views spot Bitcoin ETFs, introduced in the US this January, as the most encouraging advancement in the cryptocurrency sector. So far, retail investors have predominantly invested in these ETFs, while institutional investors have yet to make their move. (Paraphrased)
Ardoino stated that up to 1-2% of large conventional hedge funds and other institutions could cause substantial price hikes for Bitcoin. Furthermore, he mentioned that the availability of spot Bitcoin ETFs in the United States has made it simpler for retail investors, who previously lacked the expertise, motivation, or confidence, to acquire Bitcoin through crypto exchanges.
While acknowledging the convenience of ETFs for starting with bitcoin, he pointed out a potential downside. Buying shares of a bitcoin spot ETF goes against Maxis’ recommendation: instead of self-custodying their bitcoins, holders rely on centralized entities to manage their assets.
However, if beginners view ETFs as a starting point and instead focus on learning about Bitcoin’s advantages beyond instant gains, the situation could shift dramatically.
Most individuals continue to evaluate financial growth using either Euros or US Dollars. Consequently, they prefer focusing on these currencies over holding what many consider the most stunning currency.
Tether Competition and ETF Impact
Ardoino contradicted earlier speculation that the acceptance and debut of Bitcoin spot ETFs in the US would decrease demand for USDT and other stablecoins. Instead, he pointed out that USDT’s market value has significantly increased by approximately $20 billion since January, reaching around $110 billion currently.
Institutional investors heavily utilize Bitfinex, a prominent crypto exchange. In the last 6 to 12 months, trading activity on this platform has surged noticeably following the launch of the Bitcoin ETFs.
Regarding Tether’s stablecoin market competition, specifically the newcomer Ethena and its fast-growing USDe stablecoin, an executive expressed that the stablecoin sector wouldn’t exist if Tether was the sole participant.
He thinks that healthy competition is beneficial, yet it’s important for people to understand the distinct features of various stablecoins since they don’t all offer the same benefits.
While many newly launched stablecoins go for DeFi, Tether’s goals are different:
“Tether doesn’t prioritize Decentralized Finance (DeFi) over anything else. However, Tether plays a role in DeFi. Nevertheless, our main focus is on providing access to the US dollar for individuals in emerging markets and developing countries, who are often excluded from traditional financial systems.”
AI and the Future
Tether has explored some AI projects in recent months, and according to Ardoino, this focus is expected to grow. He shared that the company solely utilizes its earnings to fund these AI ventures.
In 2023, Tether generated a revenue of $6 billion. Out of this amount, they set aside approximately $600 million for various AI projects. The rest, which amounted to $5.4 billion, was utilized to bolster their stablecoin reserves, an area where the company had previously faced criticism.
More recently, Tether has integrated two of its biggest stablecoins onto the TON blockchain, with over 30 million units of USDT now in circulation on the network.
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2024-04-24 12:09