Jesse Powell explained how the additional emission of stablecoin and the growth rate of the first cryptocurrency are related.
The head of the Kraken cryptocurrency exchange, Jessie Powell, argues that Tether stablecoin are not a tool for manipulating the course of Bitcoin. The expert explained that an increase in the USDT emission can influence the cost of the first cryptocurrency only by attracting new funds to the blockchain industry.
The latest surge in #bitcoin has been accompanied by big volume in #tether. Watch as @krakenfx CEO @jespow details to @OJRenick why the controversy over the stablecoin is much ado about nothing.$BTC $USDT
— TD Ameritrade Network (@TDANetwork) July 1, 2019
“Historically, when the Tether offer increases, the supply of US dollars for Kraken also increases. During the additional issue of Tether, in 99% of cases, tons of US dollars are simultaneously received on the exchanges,” Powell explained.
He stressed that Tether is one of the elements of the fiat offer on the stock exchanges, but not a tool for artificially overvaluing the Bitcoin rate. According to the head of Kraken, cryptocurrency first of all becomes more expensive due to the influx of new investors into the digital money market and media attention.
Tether is often accused of manipulating the cryptocurrency market. In November last year, the US Department of Justice launched an investigation into the company in order to find out the possibility of its influence on the growth of Bitcoin in 2017.
Also, users are dissatisfied with the fact that not all stablecoin are fully provided with real US dollars – in spring the company changed the rules on its official website. Now each USDT should officially be backed up by “reserves, which include the traditional currency and cash equivalents, as well as other assets and forthcoming loans from loans that have been provided to third parties.”