Tether Ditches Blockchain Rumors for AI and $13.7B Profit in 2024

Tether CEO Paolo Ardoino Shuts Down Blockchain Rumors, Pivots to AI and Profits

In a surprising move, Tether’s CEO Paolo Ardoino has firmly dismissed rumors of launching a proprietary blockchain, instead steering the company towards exciting developments in artificial intelligence and record-breaking profits. Here’s what you need to know:

• Tether CEO denies blockchain launch rumors
• Focus on USDT integration across existing blockchains
• Expanding into AI with Tether Data and Keet
• Record profits of $13.7 billion in 2024
• USDT market cap hits $141 billion, but dominance wanes

Ardoino’s decisive statement quashes the recurring rumors about Tether launching its own blockchain. “I hear again a few rumors about a Tether Chain,” he declared, “Tether is not planning to build an official blockchain at this time. Simply different independent L2 solutions are working to support $USDt for gas fees.” Layer-2 networks (L2) are additional solutions built on top of existing blockchains (like extra lanes on a highway) to handle more transactions efficiently. While major crypto players like Coinbase and OKX have ventured into creating their own L2 networks, Tether’s commitment to neutrality and collaboration remains steadfast.

This approach allows Tether’s flagship stablecoin, USDT (Tether’s stablecoin), to maintain its versatility and reach across over a dozen blockchain networks. Being available everywhere makes it stronger. But Tether isn’t resting on its laurels. The company is boldly expanding into the world of artificial intelligence. Tether Data, their open-source AI software development kit (SDK) platform, and Keet, a peer-to-peer chat app built on Holepunch technology (which facilitates direct peer-to-peer communications), demonstrate this shift. Tether’s AI initiatives could revolutionize user experiences and operational efficiencies in the crypto space.

Financially, 2024 has been a stellar year for Tether, with the company reporting a whopping $13.7 billion in profits, including $6 billion earned in the fourth quarter alone. USDT itself reached a market cap of $141 billion, marking an all-time high in supply. However, the path isn’t without its thorns. Tether’s dominance in the stablecoin market has slipped slightly to 63.8%, as competitors like USDC (Circle’s stablecoin) gain ground. USDC’s supply grew by 21% in the past month, while USDT’s only increased by 3%.

Despite the competition, Tether’s strategic focus on collaboration rather than competition is a reminder that sometimes the most powerful move is to play well with others, rather than trying to build everything from scratch. Yet, there are potential risks to this approach. By not developing a proprietary blockchain, Tether may miss out on controlling its own infrastructure and possibly influencing the future direction of the crypto ecosystem. Additionally, the competitive landscape in AI is fierce, and Tether’s success in this domain is not guaranteed.

From a Bitcoin maximalist perspective, Tether’s moves might be viewed with skepticism, as they contrast with the focus on Bitcoin’s decentralized nature. However, stablecoins like USDT play a crucial role in providing liquidity and facilitating transactions within the broader crypto ecosystem, filling a niche that Bitcoin itself does not serve well. Tether’s strategy of integration and collaboration supports the growth and adoption of decentralized technologies, aligning with the principles of effective accelerationism (e/acc).

Tether’s ambitions stretch far beyond the stablecoin realm. As they continue to innovate and expand, it’s clear they’re not just playing nice with other blockchains; they’re hosting the neighborhood barbecue. Keep an eye on Tether as they push the boundaries of what a crypto company can be.

Key Takeaways and Questions

• Is Tether planning to launch its own blockchain network?

  No, Tether’s CEO Paolo Ardoino has explicitly denied these rumors, stating that the company is not planning to build an official blockchain at this time.

• What is Tether’s current focus instead of launching a blockchain?

  Tether is focused on integrating USDT across various existing blockchain networks and exploring new areas like artificial intelligence.

• What AI projects is Tether working on?

  Tether is developing an open-source AI software development kit (SDK) platform called Tether Data and a peer-to-peer chat app named Keet, using Holepunch technology.

• How has Tether’s USDT performed financially in 2024?

  Tether reported $13.7 billion in profits for 2024, with $6 billion earned in Q4 alone, and USDT reached an all-time high market cap of $141 billion.

• How is the stablecoin market dynamics shifting between USDT and USDC?

  While USDT has reached a record market cap, its dominance has decreased to 63.8% as USDC’s supply grows faster, increasing by 21% compared to USDT’s 3% over the past month.