Saturday, December 5, 2020
Home Ethereum - Top 10 Bitfinex CTO: Tether is Not Bitcoin (BTC), USDT is Centralized

Bitfinex CTO: Tether is Not Bitcoin (BTC), USDT is Centralized

In brief:

  • Bitfinex and Tether CTO, Paolo Ardoino, has reiterated Tether is a centralized stablecoin
  • This comes after crypto enthusiasts questions the decision to freeze $33M in USDT from the KuCoin hack
  • Tether also froze $1M USDT on Omni and another $1M USDT on Tron
  • The exchange had also rescued another $1M lost to a DeFi smart contract

The CTO of both Bitfinex and Tether, Paolo Ardoino, has clarified via Twitter that Tether (USDT) is a centralized stablecoin. His comments come after multiple crypto enthusiasts questioned the decision to freeze a $33 million USDT stolen from KuCoin and an additional $2 Million USDT hours later. In the case of the latter, Tether froze $1M USDT on the Omni network and another $1M USDT on the Tron blockchain.

Mr. Ardoino defended the actions of freezing the funds by explaining that Tether has a duty towards users, regulators and law enforcement. He made the statement via the following tweet.

Tether (USDT) is Not Bitcoin, Please Learn the Difference

He would then add to the above comments via a Twitter thread which explained how an intervention is necessary in cases such as the KuCoin hack or when a user sends a significant amount of USDT to an unrecoverable address as was the case with the $1 Million sent to a DeFi smart contract.

Furthermore, Mr. Ardoino requested crypto users to differentiate between Bitcoin and Tether.

Thread

1. People that complain about centralised stablecoins freezing stolen funds are doing so just because they are not part of who lost funds. Once happens to them usually they start whining without an end (happened few times). Too easy when it happens to someone else.

2. #Tether is not #Bitcoin. Please learn the difference. Tether is a centralised stablecoin that serves as a better and faster transport layer for fiat on chain. Being centralised is also subject to regulatory requirements.

3. Also Tether can decide to freeze funds in 2 situations: – law enforcement / regulator request – funds are sent to unrecoverable addresses (completely at tether discretion) This ability does not entitle crypto users to participate to stupid scams or paying less attention.

(Feature image courtesy of Tether.to.)

Popular Articles

“Shark Tank” Judge Kevin O’Leary Is Concerned About BTC’s Price Swings

As we have all seen in the past, bitcoin can be doing extremely well and yet it will still attract detractors along the way....

Steve Forbes Thinks Bitcoin Is Yet To Qualify As A Store Of Value, Roots For Gold

Advertisement     Bitcoin is not viable as a store of value. That’s according to Steve Forbes, Editor-in-Chief of the Forbes Magazine. Apparently, Steve is all for...

Grayscale: Ethereum Is Getting More Attention Beyond The Software Developers’ Realm

Advertisement     For years, Ethereum has largely been viewed as a platform for software programs to showcase their prowess in developing dApps for the blockchain...

Ethereum, Cosmos, VeChain Price Analysis: 05 December

Thanks to Bitcoin’s performance over the past 10 days, many of the market’s altcoins noted sharp upticks recently. However, that wasn’t to last as...

Litecoin long-term Price Analysis: 05 December

Disclaimer: The findings of the following article are the sole opinion of the writer and should not be taken as investment advice The cryptocurrency market has...

Paul Tudor Jones: Bitcoin Will Explode in the Next Two Decades

Paul Tudor Jones has been a huge bitcoin advocate as of late, but he’s confident that the currency is going to explode in the...