The emergence of the FTX cryptocurrency exchange has always been one of the most inspiring stories in the crypto field. Its success has led CEO Sam Bankman-Friend on the path to becoming one of the richest cryptocurrency billionaires.This 29-year-old player is Included in the Forbes list of the 400 richest people in the United States in 2021, Which saw the CEO being named the richest cryptocurrency billionaire.
Although FTX has an impressive track record, the road to the present is not always easy. CEO Sam Bankman-Fried talked about some of the challenges the exchange encountered when it opened.In one piece Bloomberg Business Weekly, The CEO revealed that cryptocurrency exchanges face major challenges in getting banks to join.
Chief Executive Bankman-Fried told Bloomberg that the company had major problems getting banks to work with them. This is because the bank is skeptical of cooperating with crypto-related institutions due to regulatory issues and refuses to cooperate with his exchange. “If you are an encryption company, the bank will work nervously with you,” Bankman-Fried said.
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The CEO calmly responded and turned his attention to other things. Tether. Given its banking issues, its ease of use makes it an obvious choice for cryptocurrency exchanges. Therefore, investing in stablecoins is the solution to this problem. Tether allows FTX customers to trade and trade on its platform, and the company can hold Tether without the hassle of converting cryptocurrencies into U.S. dollars.
USDT price holding steady to dollar | Source: USDTUSD on TradingView.com
Bankman-Fried revealed that the company bought billions of dollars in USDT to help users trade on their platform. But it has been clarified that cryptocurrency exchanges do not actually treat stablecoins like the US dollar.
Fight with the law
Tether has been in various long-term legal battles.The company is accused Avoid the law and bank fraud, Which led to an investigation by the US Department of Justice.other Class action A lawsuit has been filed against the stablecoin issuer, but Tether has won the so-called “clumsy attempt to steal money.”
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Most of Tether’s difficulties are related to how much of its issued tokens are backed by real money.Stablecoin issuers claim that these coins are 100% cash and cash equivalents, but investors are cautious about this because Data shows that only about 2.9% of all issued coins are backed by cash reserves. Its biggest support is commercial paper, which accounts for approximately 65.4% of Tether’s reserves.
Nevertheless, in terms of market value, Tether is still the top 5 cryptocurrency. It has the most trading pairs in the crypto market, with a market capitalization of US$68 billion.
Featured image from Decrypt, chart from TradingView.com