Značka: Paolo Ardoino

Tether CTO: Terra wasn’t a rug pull, it was a poorly designed ‘castle of cards’

Tether and Bitfinex CTO Paolo Ardoino said that the Terra (LUNA) project was not intended to be a rug pull, but was simply “poorly designed.” Speaking on the Terra ecosystem’s market-shattering crash, Ardoino likened its algorithmic stablecoin TerraUSD (UST) to a “castle of cards” that was due to fall at any time. Many in the crypto community have highlighted a long list of dubious comments/actions from beleaguered Terraform Labs founder Do Kwon that raise questions about his actions. It has also been reported that Kwon also worked on a previously failed algo-stablecoin project dubbed “Basis Cash.”Ardoino made the comments during an appearance on the Reimagine Unplugged podcast this week, from Reimagine, a media company that focuses on Web3 content and events. The CTO stated that a big problem was with Kwon’s misguided sense of self belief:“I don’t know Do Kwon. But let’s give him the benefit of the doubt. He created this project with arrogance and with thinking that he was right and many were supporting him, of course, probably for economic reasons, but was not per se, a rug pull right, it was a project that was poorly designed as many projects are poorly designed.”“That there was like a castle of cards and it could fall down, but of course he couldn’t say it, because otherwise it would have fallen down much faster And again, it was clear to me, it was clear to many that I know that it was a bad idea,” he added. CTO @Tether_to, @paoloardoino on $UST:“It’s all fun and games until you are a 10 billion stablecoin. And then it becomes much harder the faster you grow, the more you grow, right, because if you are a stablecoin, especially an algorithmic stablecoin..” https://t.co/UNuvNhZoP9— REIMAGINE – Web3 Events and Media (@REIMAGINE_2021) May 18, 2022The CTO went on to state the UST had become too big to maintain its peg, as its collateralization (primarily in Bitcoin at the time as it attempted to build its reserves) was not large enough to support the stablecoin but was still “big enough to crash the market even further.”“They were basically in a cascade situation where they had to defend the peg so they have to sell the collateral and selling the collateral was causing additional crashes and these additional crashes were pushing them to sell more or collateral and so on and so forth,” he said. Questioned on what the regulatory landscape for stablecoins could look like moving forward, Ardoino suggested that policymakers first need to clearly define the difference between stablecoins fully backed by assets as opposed to those primarily backed by algorithms: “I believe that the first thing that needs to happen is proper categorization of stablecoins so right now, Terra UST is an algorithm stablecoin, while Tether is a centralized stablecoin. So two different beasts with two different assurances, two different backings and so on.”Related: Was Terra’s UST cataclysm the canary in the algorithmic stablecoin coal mine?Cointelegraph reported earlier today that Tether posted a 17% decrease in commercial paper holdings backing its USDT stablecoin reserves in Q1. The firm also emphasized that its stablecoin was “fully backed” with $82 billion in reserve as part of its legally required reporting as a result of the $18.5 million settlement with the Office of the New York Attorney General from January 2021.

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Stablecoins are the perfect trojan horse for Bitcoin, says Tether CTO

As one of a number of Cointelegraph representatives attending the Paris Blockchain Week Summit (PBWS) at the historic Palais Brongniart — a neoclassical building previously serving as the headquarters for the Parisian stock exchange from 1826 to 1987 — European news reporter, Joe Hall sat down for an in-depth interview with the Chief technology officer of Bitfinex and Tether, Paolo Ardoino.Previously ranked 88th in Cointelegraph’s prestigious Top 100 2021 for his influential impact on the growth of the decentralized finance (DeFi) ecosystem, Ardoino spoke on an array of topics including the adoption of Bitcoin and Tether as legal tender in the Swiss city of Lugano, the scalability concerns of popular blockchain networks, as well as the potential for new countries to accept Bitcoin in the future.In early March, the Swiss city of Lugano — which is also a major financial hub in Switzerland — formed a collaborative partnership with stablecoin operator Tether to launch a 3 million-Swiss franc initiative designed to encourage the adoption of blockchain technologies and the use of digital assets.Utilizing Bitcoin (BTC), Tether (USDT) and the native citizen loyalty token LVGA Points, the assets can be transacted by locals in activities such as taxation and purchasing of public goods and services.In addition, the project has also pledged to create educational scholarship programs within the three universities of Lugano, a blockchain summer camp, and a maximum-valued 100 million Swiss franc ($107.2 million) pot to foster the growth of blockchain start-ups:“In just one month since the announcement, working with the city we have set up a working group that includes tax, legal and relocation advisors […] and we have been able to start onboarding 25-30 different companies and startups” […] which “between the company’s assets and private wealth” are valued “between 300 to 400 million Swiss Franc.”Ardoino noted that these company’s relocated their operations from both within Switzerland, as well as from countries such as India and Singapore. He stated that their intention is to “use these few startups as a template” to pave the path for others in the future.Related: Paris Blockchain Week, day 1: Latest updates from the Cointelegraph team on the groundReferencing his tweeted picture of an Lugano newspaper article with the headline ‘Cittá affamata di bitcoin,” translating to “City hungry for Bitcoin,” Ardoino said that “stablecoins are the perfect trojan horse for Bitcoin” in that they can serve as the initial mechanism for adoption before exploration into more complex, regulatory-stringent cryptocurrencies.GM pic.twitter.com/oOFZpZ8qkW— Paolo Ardoino (@paoloardoino) March 4, 2022When questioned on the possibilities of new European country’s adopting Bitcoin, Ardoino said that “we’re looking at different other jurisdictions”, and that some people within “the parliament are interested to talk to us as they would like to educate themselves to create a case for internal adoption.”Though in saying this, he was keen to stress the importance that the vision of wide-scale Bitcoin adoption throughout Europe would not be achieved overnight, but through a bottom-up, community-first approach, such as witnessed in Lugano.

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