The stablecoin issuer has been at the center of some juicy rumors, but CEO Paolo Ardoino is here to set the record straight.
No investigation, no IPO, plz no FUD
Reports popped up claiming that Tether was under investigation by federal authorities, causing quite a hype in the crypto community.
Ardoino quickly denied these allegations, insisting there’s no probe into their operations.
“As we told the Wall Street Journal, there is no indication that Tether is under investigation. They’re just recycling old noise. Full stop.”
Along with addressing the investigation rumors, Ardoino also confirmed that Tether has no plans for an IPO either.
Instead of going public, the company is focused on expanding its operations and continuing to shake things up in the financial world.
What’s behind the rumors? The standard yearly Tether FUD?
The Wall Street Journal reported that the U.S. Attorney’s Office in Manhattan was looking into Tether for potential money laundering activities, particularly whether third parties were using their platform for illegal transactions.
But Ardoino firmly dismissed these claims, telling that Tether hasn’t seen any signs of a federal investigation and that these reports are unfounded.
Historically, Tether has faced its fair share of scrutiny regarding its operations and transparency, that’s widely known.
But it remains the leading stablecoin on the market. Ardoino highlighted that going public would actually slow down their ability to innovate and disrupt traditional finance.
“I think a company should only go public when they need to access capital and liquidity,” he explained. With $12 billion in profits over the past two years, Tether doesn’t need to chase after new capital.
The bigger picture
Instead of focusing on an IPO, Tether is diving into new ventures. The company shared that they’re exploring opportunities in commodity lending and other financial services.
So it seems Tether is indeed busy innovating, it’s also worth noting that persistent rumors and scrutiny could impact its reputation among newcomers to crypto and may affect market stability.
Plus, without an IPO, Tether might find it harder to tap into new capital markets.
Competition is also heating up with other stablecoins like Ripple’s new RLUSD entering the scene, which could challenge Tether’s dominance.
Tether’s responses to these allegations and its strategic choices will play an important role in shaping its future and the overall stability of the crypto market.
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