Tether CEO’s Preference for Bitcoin Over Ethereum in the Crypto World
In a recent interaction on social media, RunnerXBT posed a crucial query that resonates with crypto enthusiasts: “Will Tether ever divert a portion of its earnings to ETH, or is it a futile endeavor?” Paolo Ardoino, the CEO of Tether, provided a direct response: “Bitcoin first!” This decision sheds light on why the company is placing its bets on the leading cryptocurrency, Bitcoin, while somewhat sidelining Ethereum.
Paolo Ardoino, steering a crypto enterprise valued at over $100 billion, is unequivocal in his stance. He views Bitcoin as the pinnacle of the crypto realm. As he succinctly put it, “Bitcoin is immutable. Only 21 million coins. Easy choice.”
Tether’s commitment to Bitcoin is evident in its strategic moves. Last year, Tether announced its intention to allocate 15% of its profits to Bitcoin to reinforce its reserves. With a remarkable profit of $1.3 billion in the last quarter, Tether has stayed true to its course. Ardoino confirmed that Bitcoin acquisitions were executed through their investment arm in 2024.
Beyond playing it safe, the issuer of the stablecoin USDT is venturing into ambitious initiatives, including investing $627 million in Bitcoin last April, launching the gold-backed stablecoin Alloy, and delving into decentralized artificial intelligence.
Meanwhile, Ethereum faces challenges. Despite Ethereum’s technological advancements and promises, Tether remains steadfast in its preference for Bitcoin. Since the Merge update in 2022, Ardoino has consistently highlighted Ethereum’s limitations, noting, “Ethereum changes its narrative like changing clothes.”
The data aligns with Tether’s stance. The ETH/BTC pair has witnessed a 45% decline since December 2021. Even Ethereum’s recent surge in May, fueled by the approval of various ETFs, failed to reverse the downward trend. The future price trajectory of Ethereum hinges on incoming flows, which have fallen short of expectations, partly due to outflows from Grayscale products.
Amidst this uncertainty, Tether opts for the security and long-term growth prospects offered by Bitcoin. With a record profit of $5.2 billion in the first half of 2024, Tether remains resolutely committed to its Bitcoin-centric strategy, leaving Ethereum to those who dream and hesitate.
