In an Ask Me Anything (AMA) Q&A session, Changpeng Zhao noted that USDT, the Tether-issued USDT stablecoin, is currently the largest by market capitalization. However, Zhao is cautious about this crypto-asset due to the lack of transparency:
<blockquote.
“Personally, I haven’t seen any audit reports on USDT. I don’t think most people have seen them either. So it’s kind of a black box because we don’t know anything,” Zhao said.
Note that in May 2021, Tether disclosed detailed information about the assets backing USDT stablecoins for the first time in many years. Bits.media previously published a detailed piece on third-party audits for Tether.
Zhao added that even well-regulated and fully vetted stable cryptocurrencies like BUSD come with unforeseen risks. Therefore, investors should pay attention to different algorithmic stablecoins rather than fixating on the most popular giants;
For example, BUSD’s capitalization fell by $5 billion at the beginning of the year. This is due to the New York State Department of Financial Services (NYDFS) requiring Paxos Trust to stop issuing new BUSDs due to security breaches.
<blockquote.
“We have to work with as many stablecoins as possible. You don’t need to bet on any one crypto asset. We have a small team working on algorithmic stablecoins in various places. These stablecoins don’t have a large scale, but they are very relevant locally,” Zhao said.
A Binance executive recently described himself as a strong supporter of bitcoin. Zhao again touched on the topic of decentralization, saying that Binance is committed to supporting different blockchains and cryptocurrencies.