Source: Fortune
Summary
Tether, a stablecoin giant, has provided $127.5 million in funding to aid the recovery of Drift, a Solana-based derivatives exchange that was hacked for $285 million by North Korea-linked hackers. The funds will help Drift make users whole and provide additional stability. Tether’s involvement has won it plaudits from crypto fans, particularly users of the Solana blockchain. Meanwhile, Circle, Tether’s chief rival, has faced criticism for not freezing USDC funds during the hack.
Our Reading
The numbers tell one story.
Tether’s $127.5 million in funding is a drop in the bucket compared to the $285 million Drift lost in the hack. Drift’s decision to use USDT for settlement when it relaunches is a clear vote of confidence in Tether. Circle’s CEO Jeremy Allaire’s “moral quandary” comment raises eyebrows, especially given the company’s decision not to freeze USDC funds during the hack. Tether’s move may have just gained it a new client and a PR win. The real question is: what’s the cost of this goodwill?
Author: Evan Null
