Ga naar de inhoud

Blockchain News Feed

All the latest news on Blockchain & Cryptocurrencies

Menu
  • Home
  • News
  • Exchanges
  • Market Analysis
  • YouTube
  • Brave Browser
Menu

Report: Tether Limited May Be Planning to Wind Down Operations

Geplaatst op oktober 19, 2018 door Blockchain News

Tether (USDT) is a stable coin. Stable coins have been lauded as the holy grail of crypto and the only avenue for the space to expand because of its ability to shield investors from volatility. Aside from regulatory concerns, Bitcoin and altcoin volatility is one of the reasons why the space is still considered “risky”. But as always, risky is relative and the same volatility is a source of profits for savvy traders.

Now, out of this stability we have Tether which happens to be the most liquid stable coin in the space and theoretically backed by equal reserve of USD. That is, for every USDT in circulation, an equivalent amount is held at reserves.

Tether, USDT, BitFinex Troubles

However, the opaqueness around BitFinex and Tether audits did drop some doubt into this story and what made the situation worse were claims by traders that there were problems around the withdrawals and deposit of fiat. A level deeper and news begun to filter our that Noble bank had lost Tether as their customer. Shortly after, BitFinex laid out new procedures for depositing withdrawals after partnering with Deltec Bank of the Caribbean hours after the USDT meltdown where at some point it traded at $0.86 to the USD.

Tether

From information available in various public channels, it’s clear that BitFinex is having difficulties of maintain a stable banking relationship. Perhaps that could be because of their failure to disclose audit findings and finally stamp out rumors of insolvency. While responding to rumors of insolvency, BitFinex pointed out at their Bitcoin and other crypto wallets. But, this wasn’t enough to temper customers who continued to withdraw their crypto holdings.

Biggest holders of Tether today are treasury,Binance and Huobi. Bitfinex has a very small amount. This means that;
1.Bitfinex has lost a lot of customers.
2.Bitfinex customers have sold Tether for crypto.
3.@cz_binance is certainly in top of the situation.
Source: @TheElementGrp pic.twitter.com/2p12TaJp0t

— CNBC Cannabis man Ran (@cryptomanran) October 19, 2018

Unwarranted risks backed by reports that audits and transparency drives could be part of the reason why BitFinex is changing banks. The reason is simple: audits are public.  This could in turn jeopardize the banking details of customers. Perhaps that is the reason why BitFinex should work through an intermediary. In the meantime they also urge their customers to keep their banking details private.

BitFinex Attempts to Stabilize Price

Regardless, there are no signals to pointing to compromise of user funds. BitFinex has enough muscle to protect their crypto holding as reports indicate. In fact, at the height of USDT liquidation which was at fever pitch on Oct 15, it was said BitFinex secretly purchased 680 million USDT and moved them to a Tether Treasury reducing the total USDT supply from around $2.8 billion to $2.1 billion restoring parity in the process.

Tether

The drastic measure helped prevent a bloodbath at the face of fear and USDT oversupply. With 680 million USDT at their reserves, Tether Treasury now holds 30 percent of the total supply. This further fueling rumors that Tether is after all planning to unwind operations.

Tether

This alone goes on to show the strength of BitFinex and their intention of maintaining the 1:1 peg. After all, the exchange is buying USDT at a discount. Once the market is stable, they plan to unload this coin for full dollar amount.

Will the market Crash if USDT and Tether wind operations? Let us know in the comment sections!!

The post Report: Tether Limited May Be Planning to Wind Down Operations appeared first on Ethereum World News.


Source: Ethereum Worldnews
Original Post: Report: Tether Limited May Be Planning to Wind Down Operations

Ledger Nano X - The secure hardware wallet

Recente berichten

  • Crypto funds post $1B inflows with net assets breaking new highs
  • Secret Service seizes $400M in crypto, cold wallet among world’s largest
  • Hong Kong prepares third batch of tokenized bonds, eyes more offerings
  • Bitcoin price can hit $150K in weeks thanks to Trump's 'Big Beautiful Bill'
  • Tether USDT challenges Circle’s lead on BitPay payments in 2025

Categorieën

  • Altcoin Buzz
  • Altcoin Buzz News
  • AMBcrypto
  • Bitcoin.com
  • Bitcoinist
  • BTC Manager
  • CCN
  • Coin Mastery
  • Coindesk
  • Coinpower News
  • Cointelegraph
  • CryproSlate
  • Crypto Daily
  • Crypto News (.net)
  • Cryptocoin News
  • Cryptocurrency News
  • CryptoDaily.co.uk
  • CryptoPotato
  • CryptosRUs
  • Daily HODL
  • DataDash
  • Ethereum Worldnews
  • Exchanges
  • ICO's
  • Invest in Blockchain
  • Market Analysis
  • News
  • News BTC
  • Newsbit
  • Portfolio
  • Pricecheck
  • Ready Set Crypto
  • The Modern Investor
  • ToshiTimes
  • Use The Bitcoin

Archieven

  • juli 2025
  • juni 2025
  • mei 2025
  • april 2025
  • maart 2025
  • februari 2025
  • januari 2025
  • december 2024
  • november 2024
  • oktober 2024
  • september 2024
  • augustus 2024
  • juli 2024
  • juni 2024
  • mei 2024
  • april 2024
  • maart 2024
  • februari 2024
  • januari 2024
  • december 2023
  • november 2023
  • oktober 2023
  • september 2023
  • augustus 2023
  • juli 2023
  • juni 2023
  • mei 2023
  • april 2023
  • maart 2023
  • februari 2023
  • januari 2023
  • december 2022
  • november 2022
  • oktober 2022
  • september 2022
  • augustus 2022
  • juli 2022
  • juni 2022
  • mei 2022
  • april 2022
  • maart 2022
  • februari 2022
  • januari 2022
  • december 2021
  • november 2021
  • oktober 2021
  • september 2021
  • augustus 2021
  • juli 2021
  • juni 2021
  • mei 2021
  • april 2021
  • maart 2021
  • februari 2021
  • januari 2021
  • december 2020
  • november 2020
  • oktober 2020
  • september 2020
  • augustus 2020
  • juli 2020
  • juni 2020
  • mei 2020
  • april 2020
  • maart 2020
  • februari 2020
  • januari 2020
  • december 2019
  • november 2019
  • oktober 2019
  • september 2019
  • augustus 2019
  • juli 2019
  • juni 2019
  • mei 2019
  • april 2019
  • maart 2019
  • februari 2019
  • januari 2019
  • december 2018
  • november 2018
  • oktober 2018
  • september 2018
  • augustus 2018
  • juli 2018
  • juni 2018
  • mei 2018
  • april 2018
  • maart 2018
  • februari 2018
  • januari 2018
  • december 2017
  • november 2017
  • oktober 2017
  • september 2017
  • maart 2017
  • juni 2016
  • juli 2014
  • september 2013
  • augustus 2013
©J Blockchain News Feed | Ontwerp: Krant WordPress thema