In an announcement which took much of the industry by surprise, Justin Sun and Tether have ‘teamed up’ in order to launch a USDT Stablecoin on Tron’s blockchain. This partnership sees the Tron Foundation and Tether creating a dollar-pegged USDT stablecoin as a TRC-20 token (the technical standard used for implementing tokens similar to ERC-20 for Ethereum).
The blockchain move is being hailed by both organizations as a golden opportunity to increase available liquidity for decentralized applications (dApps) and network protocols based on Tron’s proprietary blockchain. Moreover, increased DEX liquidity will also improve access to Tron’s ecosystem for institutional investors; who now will have the option to use a recognised stablecoin.
Tether CEO Jean-Louis van der Velde described the partnership as:
“This integration underlines our commitment to furthering innovation within the cryptocurrency space as we continue to anticipate the needs and demands of the digital asset community.”
Most, if not all the cryptocurrency community will have been at least partially acquainted with the Tether auditing scandals. Accusations surrounding the fractional ‘printing’ of Tether, and ‘pumping’ of Bitcoin’s price to the 2017 highs, still remain. These claims have only been further fuelled by the foundation’s hesitance to provide accurate and independent audited accounts – parting ways with Friedman LLP last January.
It is, therefore, no surprise that Tether’s detractors have also identified Tron’s often controversial protocol developments (suggested plagiarism of code and market manipulation tactics being just two). Putting these two organizations together seems like a controversial match made in heaven.
Despite various accusations from industry analysts, little can be said about the drive and determination from both Foundation’s aspirations. Justin Sun is not only a prolific spokesperson but leads an incredibly effective Mergers and Acquisitions team; purchasing BitTorrent and aligning himself with key industry heavy-hitters (such as CZ of Binance). So whilst this partnership will no doubt attract its fair share of critics, spectators should be under no illusion of each teams ambitions and plans for their projects and the wider cryptocurrency ecosystem.