Tether Promotes Paolo Ardoino To CEO, Replaces “Mysterious” Der Velde

Tether has announced a significant leadership transfer, causing a considerable uproar in the cryptocurrency sector. The enigmatic crypto leader JL van der Velde will be replaced as CEO of Tether by the company’s Chief Technology Officer (CTO), Paolo Ardoino.

This change has caused a stir in the cryptocurrency sector and is set to go into effect in December 2023. With a remarkable total market capitalization of $80 billion, Tether is recognized for its USDT token, which has retained its position as the largest stablecoin by market value.

This change in leadership occurs as stablecoins, and the larger cryptocurrency market are subject to increased regulatory scrutiny. Many legal disputes and controversies have surrounded Tether’s USDT, including inquiries regarding the reserves that supports the stablecoin and worries about its effects on international financial systems.

Van der Velde, however, has been working behind the scenes for a long time and deliberately avoiding public appearances, including the press – an attitude the cryptocurrency community has described as strange. Information has it that Tether was widely criticized last year following the liquidation of its major competitor, TerraUSD (UST).

Ardoino Played Significant Role In Improving Tether’s Technology, Management Admits

JL van der Velde, the leaving CEO, has remained an enigma in the bitcoin community. While speaking on this development, Ryan Browne from the CNBC online platform says that Van Der Velde’s resignation from Tether’s senior position will likely prompt inquiries about the company’s future course and whether this change in management is a reaction to escalating regulatory challenges.

In a press release published on Friday, Tether revealed the imminent transition process with Ardoino expected, stating that the company is affirmative on what to expect in the next administration. Describing Paolo Ardoino’s time in the company, the press statement described him as a  popular player in the blockchain and cryptocurrency industries and has played a significant role in influencing Tether’s technology and operations.

He was essential in creating and maintaining Tether’s blockchain technology and assuring the safety and stability of the USDT token in his capacity as CTO. The company also added that the recent action might be interpreted as a response to requests for more information about the reserves supporting Tether’s stablecoin.

Ardoino Optimistic About The Markets in Crypto Assets (MiCA) Regulation

Ardoino, while talking to CNBC earlier in the year at the Money 20/20 conference in Amsterdam, said that the company has yet to complete a comprehensive audit. He explained that none of the four major auditing companies agreed to work with a company with no existing registration. He regretted that there needs to be a general regulatory framework in the industry at this time when the cryptocurrency industry needs regulation the most.

Ardoino also affirmed that the days of the unregulated cryptocurrency industry would soon be over and might start in Europe. He further mentioned that the European Union’s Markets in Crypto Assets (MiCA) regulation will play a huge role in doing this.

Further investigation into the content of the MiCA shows that it will need all stablecoins to keep some level of digital assets, including more authentic assets, in their reserve while publicly disclosing their reserve. It was gathered that MiCA will be fully implemented in December 2024.

It was reported that the price of UST collapsed to zero after investors moved out in troves due to doubts about its backing. However, Tether’s total reserve has risen to over $86 billion within three months (from April – June) and has reportedly booked a profit of over  $1 billion, representing a 30% increase quarter-over-quarter.