Crypto Showdown: Will Tether Survive the Great Stablecoin Smackdown? 🤔💰

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In a world where stablecoins are as common as socks in a washing machine, Tether, the granddaddy of them all, is facing a bit of a kerfuffle. According to the ever-enthusiastic Paolo Ardoino, the CEO of Tether, it seems that competitors and politicians have decided that the best way to deal with the world’s largest stablecoin issuer is to, well, “kill Tether.” Because why build a better mousetrap when you can just set fire to the whole barn? 🔥

Now, Tether, the proud parent of USDt (USDT), boasts a market capitalization that would make even the most ambitious dragon hoard its gold—over $142 billion! That’s more than double the size of Circle’s USD Coin (USDC), which is sitting pretty at a mere $56 billion, according to the ever-reliable CryptoMoon data. Talk about a heavyweight title fight! 🥊

However, it appears that the competition is not content with merely trying to outshine Tether. No, no! According to Ardoino, their business model seems to revolve around a rather sinister plot: “Kill Tether.” Every meeting, every handshake, every suspiciously polite smile culminates in this grand design. It’s like a soap opera, but with more spreadsheets and fewer dramatic pauses. 📊

“While our competitors’ business model should be to build a better product and even bigger distribution network, their real intent is ‘Kill Tether.’ Every single business or political meeting that they have culminates with this intent.”

And just when you thought it couldn’t get any more dramatic, Ardoino added, “I’ll leave it to you to define a competitor trying to use lawfare to kill an opponent, instead of focusing on better products.” Because nothing says “I’m a good sport” like a good old-fashioned legal battle! ⚖️

But fear not, dear reader! Tether is not throwing in the towel just yet. Ardoino assures us that they will continue their noble quest for global financial inclusion, particularly in those underdeveloped economies that could use a little financial fairy dust. With over 400 million users and 35 million new wallets popping up each quarter, Tether is like the popular kid in school—everyone wants to be friends! 🎉

However, the plot thickens! Tether recently found itself excluded from the exclusive club of 10 firms approved to issue stablecoins under the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework. Ouch! That’s like being left out of the best party of the year. 🥳

According to Patrick Hansen, the senior director of EU strategy and policy at Circle, the lucky 10 include Banking Circle, stablecoin issuer Circle, Crypto.Com, and a few others that sound like they could be characters in a fantasy novel. These firms have issued 10 euro-pegged stablecoins and five US dollar-pegged stablecoins, as reported by CryptoMoon on Feb. 19. It’s a veritable cornucopia of crypto! 🌽

Tether Faces Growing Challenges Under Europe’s MiCA Framework

As if things weren’t spicy enough, Tether has been facing a veritable avalanche of regulatory challenges in Europe since the MiCA regulations took effect at the end of 2024. It’s like trying to navigate a minefield while blindfolded! 🎭

To comply with these new regulations, crypto exchange Kraken has announced it will delist five stablecoins, including Tether’s beloved USDT, starting March 31. Because nothing says “we love our customers” like taking away their toys! 🧸

“These changes ultimately ensure Kraken remains compliant and is able to provide its exceptional trading experience to European clients for the long term,” the company stated, probably while crossing their fingers behind their backs. 🤞

Crypto.com, another major player in the game, has also confirmed it will be delisting USDT and nine other stablecoins starting Jan. 31, 2025. Users will have until the end of the first quarter of 2025 to convert their tokens to MiCA-compliant assets. Any remaining holdings will be magically transformed into a compliant stablecoin or asset of corresponding market value. It’s like a crypto fairy tale! 🧚‍♂️

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2025-02-25 17:58