Kraken CEO: Growth in Tether’s capitalization is consistent with an increase in fiat deposits on exchanges
The CEO of the Kraken cryptocurrency exchange Jesse Powell commented on the version that the stablecoin Tether may be the reason for the recent rise in the price of bitcoin.
In an interview with broker TD Ameritrade on July 1, Powell said that he did not have inside information from Tether, while noting that Bitcoin’s growth was accompanied not only by stablecoin injections, but also by new fiat deposits..
“Historically, when we see an increase in the supply of Tether, we also see an increase in the supply of US dollars on Kraken and other exchanges,” he said. “I think Tether is simply a more transparent reflection of what’s happening at the banking system level across all exchanges. When new Tethers are printed, in 99% of cases tons of US dollars are flowing to exchanges at the same time “.
Powell also said that he does not consider Tether a tool to inflate Bitcoin, but rather one of the elements of the fiat offering on exchanges. At the same time, the growth of bitcoin usually coincides with the influx of new users, he added. “That’s what drives the price. It’s retail investor demand, media attention, but not Tether. “.
This opinion is consistent with an earlier statement by the founder of the Ethfinex exchange, who said that Tether is issuing new USDT tokens in response to investor demand..
Powell, for his part, admitted that if it detects signs of fraud, Kraken could delist Tether or any other asset represented on the platform..
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