Kraken's Jesse Powell doesn't think it's Tether that's pumping Bitcoin

02 Jul, 2019
by David Borman
Kraken's Jesse Powell doesn't think it's Tether that's pumping Bitcoin

Recently the CEO of Kraken, Jesse Powell, did an invterview with the TD Ameritrade Network, in which he discussed that in his view, Tether is not being printed to artificially boost the Bitcoin supply but rather, Tether is being printed in response to new fiat currency entering the market.

Right off the bat, the host asks Powell if he feels the growth of Tether and subsequent growth of Bitcoin is actually "legitimate." Powell qualified that he has no special inside information, but had this to say:

"... Historically when you've seen growth in the supply of Tether, we've seen growth in the supply of US dollars coming onto Kraken, and other exchanges would support the same."

He elaborates that he feels that it isn't Bitcoin responding to Tether so much as it is Tether responding to new users coming into the space and purchasing the asset to trade for Bitcoin and other Alts.

He then explains that at least on Kraken, the only pairing with USDT is in fact USD, meaning users can only trade fiat for Tether. As such, any "pump" from Tether must first come from US Dollars entering the market. Not all exchanges work this way, but Powell does not believe that Tether is generally inflating Bitcoin.

At the end of the interview, Powell is asked if Kraken would delist Tether if it did come out to be a scam, to which he responded:

"...If we feel at any point that the asset turns out to be a scam, or is not something we want to expose to out clients, or we feel like there's not even a role for us to provide a market for price discovery, then we might delist..."

The whole interview is worth a watch, but it sounds like Powell has more faith in Tether than many detractors in the crypto-sphere. Will it remain a major part of most exchanges? Stick with Chepicap for all updates!

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