JPMorgan Criticizes, Tether (USDT) CEO Responds Harshly - Koin Newsletter

According to a research report published by JPMorgan, Tether's dominant role in the cryptocurrency market could have negative consequences for the industry.

JPMorgan's report states, "Tether is at risk due to its lack of regulatory compliance and transparency. Therefore, we think that the intensive focus on Tether over the past year (in the market) is negative for both the stablecoin universe and the crypto ecosystem more generally." * it was said.

Over the past few years, U.S. and European regulators have begun to keep a closer eye on stablecoin issuers. According to JPMorgan analysts, compliant issuers can take advantage of regulations and increase market share.

Tether said this week that it achieved record net profit of $2.9 billion in the last quarter of 2023.

According to JPMorgan analysts, stablecoins act as a bridge between traditional finance and the cryptocurrency market and are used as "cash". Thanks to the increased use of stablecoins, it is thought that the money flowing from the traditional financial world into cryptocurrencies has increased and the crypto system has become more stable.

However, analysts interpret Tether's growing market share as risky.

Tether CEO Paolo Ardoino responded to JPMorgan analysts' assessment as follows:

*"I'm happy to read that JPMorgan has acknowledged the importance of Tether and the stablecoin technology built by our company. But it seems a bit hypocritical to me for JPMorgan, the world's largest bank, to talk about concentration." *