Category: Tether
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Crypto Community Monitors Bitfinex Wallets and the Strange 6% BTC Premium
Whether cryptocurrency enthusiasts believe the stablecoin controversy is worrisome or mere FUD, the news surrounding the $850 million of Bitfinex funds locked up has shaken the markets. Now, digital asset traders are closely monitoring the large premium on Bitfinex, where the price of BTC is trading for $300 more than on most spot markets. The…
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Markets Update: Crypto Prices Recover as Bitcoin Cash Leads the Charge Again
On April 25, cryptocurrency markets tumbled after the controversy between the New York Attorney General’s (NYAG) office, the stablecoin company Tether, and Bitfinex exchange. Since then, prices have slightly recovered and the entire cryptoconomy regained $4.3 billion after losing $10 billion last Thursday. Moreover, out of the top 10 cryptos by market capitalization today, bitcoin…
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Tether and Bitfinex confirm USDT is not fully backed by fiat, only 74% of tethers backed with cash
Legal representatives for Bitfinex and Tether confirm the widely held suspicion that USDT is not one-to-one backed by US dollars. Court documents confirm tethers are only 74 percent backed, and those holding tokens are “subject to the risk of default, insolvency, inability to collect, and illiquidity.” Coming Untethered In February of 2019, Tether updated the…
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Tether and Bitcoin prices diverge on exchanges following fraud investigation
Tether, the leading stablecoin, recently unpegged from the US Dollar after news that the New York State Attorney General is investigating iFinex Inc., which operates Bitfinex and owns Tether Ltd. USDT dropped as low as $0.975 against the US Dollar while the other top three stablecoins—USDC, TUSD, and PAX—enjoyed an approximately 6.5 percent premium. Tether…
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Markets Update: Crypto Bulls Lose Footing After Stablecoin Controversy
Cryptocurrencies dropped in value yesterday after the New York Attorney General’s court filings against Bitfinex and Tether were published. Currently, the entire market capitalization is roughly $170 billion and most cryptocurrencies have lost 2-10% of their value since the announcement. Also read: Researchers Find Hundreds of Ethereum Wallets at Risk Due to Weak Key Pairs…
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Tether bombshell leads to 5% wipeout of bitcoin, can the market recover?
On Apr. 25, the office of New York Attorney General Letitia James alleged iFinex, the company behind Bitfinex and Tether, of misusing $900 million of Tether’s cash reserves to hide an $850 million loss. Immediately thereafter, the bitcoin price plunged by seven percent against the U.S. dollar. On Binance, the world’s largest cryptocurrency exchange, the…
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Malta-based exchanges account for majority of cryptocurrency trading volume
CryptoCompare’s March 2019 Exchange Review found that the previous month saw a 70 percent increase in volume from crypto-to-crypto exchanges. Crypto spot markets also saw a huge increase, leading many to believe that the dreaded crypto winter could finally be coming to an end. Key Developments In The Exchange Market The CryptoCompare review has long…
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How some cryptocurrency exchanges incentivize wash trading
Exchanges are eager to increase their trading volume. Higher volume results in more liquidity, which attracts more traders and ultimately results in higher revenue. Although many in the industry have pointed out the flaws in these metrics, there is evidence that some exchanges are structured to encourage wash trading. Attracting New Traders A handful of…
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Tether accused of minting almost $400 million in uncollateralized UDST to prop up bitcoin
Tether, the largest stablecoin by market capitalization, has issued over $300 million in USDT during the last week. The sudden increase in supply has resulted in accusations that Tether is, once again, engaging in market manipulation and that its stablecoin is still unbacked by dollar reserves. How Tether Impacts Bitcoin Tether and closely-connected exchange Bitfinex…
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Crypto Markets and CME Futures Post Record Trade Volume
[youtube https://www.youtube.com/watch?v=q29cDiOvNnQ&w=560&h=349] Volume has been ramping up across the cryptocurrency markets, with April seeing a new all-time high posted for daily global cryptocurrency volume. The month has also seen Chicago Mercantile Exchange (CME) report record trade volume for its BTC futures contracts, in addition to Cumberland’s trade desk reporting an influx of 1,000 BTC buy…