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Jack Dorsey Slams Tether’s $250K Bitcoin Donation to OpenSats

Tether Donates $250,000 to OpenSats for Bitcoin Development Amidst Community Criticism and Debate

  • Tether donated $250,000 to OpenSats to support Bitcoin development.
  • Jack Dorsey criticized the donation amount, citing his own $21 million contribution.
  • OpenSats is a nonprofit focused on free and open-source Bitcoin software development.
  • Udi Wertheimer defended Dorsey’s funding but questioned his investment in a controversial Bitcoin mining pool.
  • Discussions highlighted tensions in the Bitcoin community regarding funding and development priorities.

Stablecoin issuer Tether made a $250,000 donation to support OpenSats, a nonprofit that funds the development of free and open-source Bitcoin software. The contribution was announced this week and aims to help OpenSats with its operations and grant distribution.

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Shortly after the announcement, Jack Dorsey, co-founder of Twitter and former Square CEO, publicly questioned the size of Tether’s donation on X, the social media platform formerly known as Twitter. “Why only $250K?” he wrote in response to Tether CEO Paolo Ardoino’s post about the gift.

Tether is a highly profitable company, having reported a $13 billion profit last year and is reportedly seeking a $500 billion valuation in current investor talks. Despite this, the company has not commented publicly on Dorsey’s critique.

When challenged about his own contributions, Dorsey stated that he has donated over $21 million to OpenSats through his Start Small initiative in 2024. This donation is detailed in a blog post by OpenSats. Dorsey has long been an advocate for decentralized technology and free speech.

Bitcoin developer Udi Wertheimer initially sided with Dorsey but later criticized him over his investment in Ocean, a Bitcoin mining pool. Ocean has attracted controversy for limiting the processing of non-financial Bitcoin transactions, including NFT-like Ordinals on the Bitcoin blockchain. Wertheimer stated that funds invested in Ocean “are being actively deployed to slow down development,” suggesting that this detracts from Dorsey’s philanthropic impact.

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This exchange highlights ongoing debates within the Bitcoin community about contributions, investments, and the future direction of Bitcoin development.

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