Crypto: Why Tether CEO Prefers Bitcoin Over Ethereum
The topic that has been on the minds of cryptocurrency enthusiasts, "Will Tether ever allocate a percentage of its profits to ETH or is it a lost cause?" was posed by RunnerXBT in a recent social media exchange. Paolo Ardoino, CEO of Tether, answered straightaway: "Bitcoin first!" Let's investigate why this corporation is putting all of its money on the cryptocurrency star while ignoring Ethereum.
Heading a cryptocurrency corporation valued at over $100 billion, Paolo Ardoino is not one to hold back. In his view, Bitcoin is the ultimate cryptocurrency.
To put it another way, you can wager on a safe bet, so why bother with Ethereum? To strengthen its reserves, Tether declared last year that it will put 15% of its earnings into Bitcoin.
Tether hasn't veered off path despite posting a record $1.3 billion profit in the previous quarter. In 2024, Ardoino even verified that they had bought Bitcoin using their investment division.
The USDT stablecoin's creator is not satisfied to adopt a cautious stance. The business is also looking at other large-scale projects:
an April 2016 investment of $627 million in bitcoin;
introduced Alloy, a stablecoin backed by gold;
investigating artificial intelligence that is decentralised.
Meanwhile, Ethereum is still having trouble.
Given all of its promises and hard forks, one may think that Ethereum would be a good fit for Tether. But no! Since the 2022 Merge upgrade, Ardoino has been drawing attention to Ethereum's flaws.
He smiles and continues, "Ethereum changes its narrative like it changes its shirt."
And the data supports his claims: the ETH/BTC pair has dropped by 45% since December 2021.
The trend could not be reversed, not even by Ethereum's recent May spike, which was fuelled by the approval of many ETFs.
Ethereum's price will rely on inflows, which haven't met expectations up to this point, in part because of Grayscale's product outflows.
Tether favours Bitcoin's security and potential for long-term growth in the face of this uncertainty.
In conclusion, Tether is still fully dedicated to its Bitcoin strategy, leaving Ethereum for the dreamers and the unsure, despite recording a record profit of $5.2 billion in the first half of 2024.