Crypto: Why Tether’s CEO Prefers Bitcoin Over Ethereum

full version at cointribune

During a recent exchange on social media, RunnerXBT asked the burning question on the minds of crypto enthusiasts: « Will Tether ever allocate a percentage of its profits to ETH, or is it a lost cause?». Paolo Ardoino, the CEO of Tether, responded bluntly: «Bitcoin first!». Let’s find out why this company is betting everything on the crypto star, leaving Ethereum on the sidelines.

Why Tether Swears by the Leading Crypto

Paolo Ardoino, at the helm of a crypto company valued at over $100 billion, doesn’t mince words. For him, Bitcoin is the Holy Grail of crypto.

Opinion of Tether’s CEO on Bitcoin – Source: Paolo Ardoino – X

« Bitcoin is immutable. Only 21 million coins. Easy choice.», he asserted.

In other words, why complicate things with Ethereum when you can bet on a sure thing? Last year, Tether announced that it would invest 15% of its profits in Bitcoin to bolster its reserves.

With a record profit of $1.3 billion in the last quarter, Tether has stayed the course. Ardoino even confirmed that Bitcoin purchases were made through their investment arm in 2024.

The issuer of the stablecoin USDT is not just playing it safe. The company is also exploring other ambitious projects:

Investment of $627 million in Bitcoin last April;
Launch of the gold-backed stablecoin, Alloy;
Exploration of decentralized artificial intelligence.

Meanwhile, Ethereum continues to struggle.

Bitcoin: Tether’s Star in the Face of a Stalled Ethereum

One might think that Ethereum, with all its hard forks and promises, could attract Tether. Not at all! Since the Merge update in 2022, Ardoino has continually highlighted Ethereum’s shortcomings.

« Ethereum changes its narrative like changing clothes», he said with a smile.

And the numbers support him: since December 2021, the ETH/BTC pair has dropped by 45%.

Even Ethereum’s recent boom in May, due to the approval of various ETFs, wasn’t enough to reverse the trend.

The future price of Ethereum will depend on incoming flows, which so far have not met expectations, partly due to Grayscale product outflows.

Facing this uncertainty, Tether prefers the security and long-term growth potential of Bitcoin.

In conclusion, with a record profit of $5.2 billion in the first half of 2024, Tether remains firmly attached to its Bitcoin strategy, leaving Ethereum to the dreamers and undecided.