Tether, the company behind the world’s largest stablecoin by market capitalization, has announced a $775 million investment in Rumble, a video-sharing platform that promotes free speech and serves as an alternative to YouTube.
Tether’s Commitment to Free Speech and Financial Freedom
“Tether deeply believes in the fundamental values of freedom of speech and financial freedom,” stated Tether CEO Paolo Ardoino in a December 20 post on X. He described the investment as a strategic effort to support technologies and organizations that empower individuals and enhance societal resilience.
Confidence in Rumble’s Leadership
Ardoino expressed strong confidence in Rumble’s leadership under CEO Chris Pavlovski. He commended the platform’s achievements and hinted at potential future collaborations. The partnership aims to explore joint ventures in areas such as advertising, cloud services, and cryptocurrency payment solutions.
Pavlovski shared Ardoino’s enthusiasm and vowed to challenge YouTube’s dominance in the global video-sharing market. “YouTube, look out. I’m coming for your monopolistic market share globally,” he boldly declared on X.
Rumble’s Stock Soars Following the Announcement
The announcement caused Rumble’s stock (RUM) to skyrocket, surging by 51.60% during after-hours trading to reach $10.90, as reported by Google Finance.
Rumble’s Cryptocurrency Endeavors
Rumble’s involvement with cryptocurrency extends beyond Tether’s investment. On November 25, the platform revealed its plans to add Bitcoin to its balance sheet. The company’s board approved allocating up to $20 million from excess cash reserves for Bitcoin purchases. This decision followed a poll conducted by Pavlovski, in which 93.9% of 43,790 participants supported the move.
Cantor Fitzgerald Acquires Stake in Tether
Financial services giant Cantor Fitzgerald has acquired a 5% stake in Tether in a deal valued at up to $600 million. This acquisition positions the firm to potentially wield political influence, as its CEO, Howard Lutnick, was recently appointed as U.S. President-Elect Donald Trump’s Secretary of Commerce.
Regulatory and Political Implications
Cantor Fitzgerald’s involvement could strengthen Tether’s position amidst growing regulatory scrutiny. The U.S. Attorney’s Office for the Southern District of New York has been investigating allegations of Tether’s involvement in illicit activities, including terrorism financing. Lutnick’s political influence is seen as a potential asset in addressing these regulatory challenges.
Tether’s largest shareholder, Giancarlo Devasini, reportedly expressed confidence in Lutnick’s ability to navigate these threats, as noted by sources cited in the Wall Street Journal. Lutnick, who is closely working with Trump during the presidential transition, is also vetting candidates for key government roles that could influence Tether’s regulatory oversight. He is expected to resign as Cantor Fitzgerald’s CEO upon Senate confirmation of his cabinet position.
The post Tether Invests $775M in Rumble, Backing YouTube Alternative Boasting Free Speech appeared first on Cryptonews.
