At a conference meeting held recently in South Korea, Binance’s CEO answered numerous questions based on the good relationship between the stablecoin, Tether and his firm.
One of the questioners, Ran Neu-Ner raised up a very important question, What impact would Tether crash have on Binance?
The CEO answered thus:
We have seen fiat currencies go down in history a lot. Probably more times than they have been in cryptocurrencies. So yes, the concern is always there and that’s also why we’re listing other stable coins as well, so we actively promote other stable coins including True USD and others.
This year has been a very good one and as well a tough year for the Binance firm. The goal set up by the firm this year is to earn $1 billion. To this effect, the firm decided to invest in a Maltese bank so as to take over the South Korean market and eventually, achieve it’s goal for the year.
What is the connection between Tether and Bitfinex?
Another question asked by Mr. Neu-Ner, following the rumours spreading over the internet which accused Binance and Bitfinex firm’s of manipulating bitcoin price in 2017 leading to the declination in the value of Tether, that same year.
Zhao’s answer to this question was as simple as this:
I haven’t personally seen their bank accounts, but from a logical point of view they have so many profits from their regular exchange business, they don’t need to do anything crazy about the Tethering. I think the reason they cannot release their bank account details is because if they release whichever bank they’re using, then the bank account gets shut down.
Personally I see his answer as not straightforward to the question being asked, that led me to ask this question.
What really is the importance of Tether to the blockchain ecosystem?