Tether Blacklists New Ethereum Addresses: What You Need to Know

Understanding Tether’s Recent Blacklisting

Tether, the leading stablecoin, has taken the bold step to blacklist three Ethereum addresses holding over $150 million in USDT. While this might sound like an exclusive club, it emphasizes Tether’s role as a centralized player in the heavily decentralized world of cryptocurrencies.

Why Addresses Get Blacklisted

The company’s ability to blacklist addresses stems from its centralized nature. Tether typically targets addresses linked to activities such as fraud or money laundering. But the specifics? Well, Tether keeps those under wraps, leaving everyone playing a guessing game about the criteria involved.

A History of Blacklisting

2022 marks a milestone for Tether, as it is the first time this year the company has taken action against addresses. Last year alone, Tether added 312 addresses to its black list—making them the bouncers of the crypto scene since they initiated this action on November 28, 2017, with a total of 563 addresses to date.

Previous Blacklisting Cases

Notably, Tether froze around $35 million in USDT following the KuCoin hack in 2020, showcasing its capability to intervene actively against illicit activities. Precautionary measures also come into play, as highlighted by Eric Wall, a prominent figure in the crypto community, who pointed out that addresses tied to scams saw their fair share of freezes in the past.

The Decentralization Debate

While Tether holds the throne with a whopping market cap of $78.5 billion, concerns about centralization motivate many to explore alternative options. Among those vying for attention is Terra’s algorithmic stablecoin, TerraUSD (UST), which, despite its market cap of $10.6 billion, is gaining traction among DeFi enthusiasts.

Do Kwon’s Response

In a tweet following Tether’s announcement, Do Kwon, founder of Terra, joked about UST’s decentralized nature and its protection against blacklisting. In essence, he pointed out that UST users have nothing to worry about—except maybe where their next brunch is coming from.

Conclusion: What Lies Ahead?

As Tether presides over the crypto kingdom with an iron fist, the rising interest in decentralized stablecoins hints at a shift in market dynamics. The balance between power and freedom is continuously re-evaluated as more investors consider the implications of centralized control in their financial transactions.