In a recent social media post, Paolo Ardoino, the CEO of Tether, rejected the notion of investing a portion of the company’s profits in Ethereum.
Ardoino underscored his preference for Bitcoin over Ethereum, citing its immutability and fixed supply as significant factors.
Tether announced last year that it would allocate 15% of its proceeds to the acquisition of Bitcoin in order to strengthen and diversify its reserves. Ardoino characterized Bitcoin at that time as “a long-term store of value with substantial growth potential.”
Ardoino subsequently clarified that the company did purchase Bitcoin through its investment subsidiary in 2024, despite the fact that Tether’s most recent quarterly report displayed a record-breaking net profit of $1.3 billion and no change in its Bitcoin reserves.
Ardoino has previously expressed his dissatisfaction with Ethereum. He contended that Ethereum was still unable to compete with Bitcoin after the Merge upgrade in 2022 and criticized its frequent narrative shifts.
Ardoino also emphasized the subpar performance of Ethereum in comparison to Bitcoin in recent years. The price of the ETH/BTC pair has decreased by 45% since its apex in December 2021. Ethereum experienced a substantial price increase in May as a result of the approval of numerous spot ETFs; however, it was unable to maintain its momentum.
The level of inflows, which have been underwhelming thus far, will likely determine the future price action of Ethereum. This is partially due to outflows from Grayscale’s product.
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