24 May

Ripple CEO Brad Garlinghouse is facing substantial criticism for his remarks about Tether, stating, “The U.S. government is going after Tether, that is clear to me.”

Garlinghouse made these comments during the May 10 episode of the World Class podcast while discussing the potential for a future black swan event.

In response, Tether CEO Paolo Ardoino called Garlinghouse “an uninformed CEO” on X, and Samson Mow, CEO of hyperbitcoinization firm Jan3, advised Garlinghouse to “leave the attacking to the XRP bots.”

Mow accused Garlinghouse of trying to spread FUD (fear, uncertainty, and doubt) about Tether, a tactic Mow claims has been used by competitors for the past decade without success. 

He pointed to Tether's significant growth and diversification into areas like energy and AI as evidence of its resilience.

According to Mow, Garlinghouse targets both Bitcoin and Tether because they compete with Ripple/XRP. He suggested that Ripple's previous attempts to position XRP as a form of money led to attacks on Bitcoin, and now that Ripple aims to issue stablecoins, similar tactics are being used against Tether.

Mow was skeptical that Garlinghouse's strategy would resonate with the public, stating, “XRP failed to compete with Bitcoin, and their stablecoin will fail too.”

In response to the backlash, Garlinghouse clarified on X on May 13 that he wasn't attacking Tether but highlighted its crucial role in the ecosystem. He explained that his point was about the U.S. government seeking more control over USD-backed stablecoin issuers, and as the largest player, Tether is a prime target.

Despite appearing conciliatory, Garlinghouse's clarification didn't alter his initial statement but reiterated it. His comment on Tether's importance to the ecosystem does not affect the U.S. Securities and Exchange Commission's actions or its potential connection to a future black swan event.

May 2024, Cryptoniteuae

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