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    Tag: Tether

    Bitcoin 7 26 2021 LearnCrypto Powered By Wyckoff SMI 2023

    Bitcoin Spike Fueled by Short Squeeze as Market Shrugs Off Tether News

    According to one analyst, some $1 billion in trading positions were liquidated as prices surged. Bitcoin market analysts are speculating over what fueled the cryptocurrency’s price…

    Karrie Butterfield July 26, 2021
    0 Comments
    Bitcoin 8 26 2019 LearnCrypto Powered By Wyckoff SMI 2023

    Crypto Long & Short: Why Tesla’s Reversal Is Good for Bitcoin

    The company’s recent move is more about policy than price. Plus: Did this week mark the start of a meaningful shift in the stablecoin market?…

    Karrie Butterfield May 17, 2021
    0 Comments
    Tether 2 23 2021 LearnCrypto Powered By Wyckoff SMI 2023

    Tether Deal With New York State Brings Quick Reversal of Crypto-Market Sell-Off

    The settlement over tether with the New York attorney general’s office appears to remove what might have been a systemic threat to cryptocurrency markets. Bitcoin…

    Karrie Butterfield February 23, 2021
    0 Comments
    Bitcoin 2 19 2021 LearnCrypto Powered By Wyckoff SMI 2023

    A Sudden Loss of Faith in Tether Would Pose Risk to Bitcoin, JPMorgan Says

    “If any issues arise that could affect the willingness or ability of both domestic and foreign investors to use USDT, the most likely result would…

    Karrie Butterfield February 19, 2021
    0 Comments
    Tether 8 26 2020 LearnCrypto Powered By Wyckoff SMI 2023

    Tether’s USDT Surpasses Bitcoin and PayPal’s Average Daily Transfer Value

    Tether’s USDT stablecoin has seen its 7-day average daily transfer value surpass that of the flagship cryptocurrency bitcoin and PayPal, according to new research. A…

    Karrie Butterfield August 26, 2020
    0 Comments
    Cryptocurrency 6 8 2020 LearnCrypto Powered By Wyckoff SMI 2023

    CoinMarketCap Metric Overhaul Keeps Owner Binance at the Top

    CoinMarketCap came under fire last month after its new web traffic-based ranking system gave Binance – which acquired the aggregator for a rumored $400 million in April…

    Karrie Butterfield June 8, 2020
    0 Comments
    Crypto 4 20 2020 LearnCrypto Powered By Wyckoff SMI 2023

    Crypto Market Sentiment Ends Its Winning Streak; Bitcoin Back to Neutral

    The market sentiment cut its string of gradual, week-per-week growth. After four weeks of minor upward movements, and last week’s break into the 5-6 score level with…

    Karrie Butterfield April 20, 2020
    0 Comments
    Crypto 10 22 2019 LearnCrypto Powered By Wyckoff SMI 2023

    Fiat-to-Crypto ‘Carry Trade’ May Tempt Traders Tired of Negative Interest Rates

    With the era of negative interest rates well and truly here, return-hungry investors may increasingly borrow in low-interest fiat currencies and invest in higher-yielding cryptocurrency…

    Karrie Butterfield October 22, 2019
    0 Comments
    crypto 5 15 2019 LearnCrypto Powered By Wyckoff SMI 2023

    Coinbase To Fill Gap In Stablecoin Market As Tether Faces Criticism

    As Vice President of Corporate and Business Development at Coinbase, Emilie Choi puts it, a stablecoin is a “digital programmable dollar” and let’s be honest, the leading…

    Karrie Butterfield May 15, 2019
    0 Comments
    Tether 5 1 2019 LearnCrypto Powered By Wyckoff SMI 2023

    Crypto Community Reacts to Tether Admitting USDT Not Fully Backed

    According to the company behind it, stablecoin USDT is not fully backed by fiat currency deposits. It was revealed today that the controversial crypto asset firm Tether…

    Karrie Butterfield May 1, 2019
    0 Comments
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    Crypto Community Reacts to Tether Admitting USDT Not Fully Backed

    Forum Description

    According to the company behind it, stablecoin USDT is not fully backed by fiat currency deposits. It was revealed today that the controversial crypto asset firm Tether only holds around 74 percent of the total value of USDT’s current circulating supply. Tether and the crypto exchange Bitfinex are currently defending allegations from the New York Attorney General’s office that the latter borrowed $600 million from Tether to stay afloat after the trading venue reportedly lost $850 million. The dramatic shortcomings are thought to be the result of Crypto Capital, a Panama-based payments processor that Bitfinex used, having assets frozen in various nations around the world.

    USDT Not Backed 100%, But Did Anyone Think That it Was?

    An affidavit filed by Stuart Hoeger, the general counsel at both Tether and Bitfinex, has today claimed that the stablecoin crypto asset USDT is only backed by around $2.1 billion. This falls short of the $2.8 billion worth of USDT currently in circulation. The document states:
    “As of the date [April 30] I am signing this affidavit, Tether has cash and cash equivalents (short term securities) on hand totaling approximately $2.1 billion, representing approximately 74 percent of the current outstanding tethers.”
    He also details that a credit agreement between Tether and Bitfinex did indeed exist and was in place “for the protection of the virtual currency market.” According to a memorandum by Tether’s defence lawyer, Zoe Phillip of Morgan Lewis, there is no need for each USDT token to even be backed by a dollar:
    “According to the Attorney General, the line of credit needed to be frozen because it improperly impairs the reserves Tether would use for redemptions. The Attorney General appears to believe that Tether must hold $1 in cash fiat currency for every dollar of tether. These allegations are wrong on multiple levels.”
    Hoegner’s affidavit seems to support this by highlighting that the stance of the company had officially changed with regards the 100 percent backing of USDT in recent months. Given that this was widely reported at the time, it seems a wonder firstly that anyone was even continuing to use USDT when numerous other stablecoins now exist and secondly, why the news of the New York Attorney General’s allegations against the two companies should drop the price in the way it did last week.

    Crypto Community Reacts to Tether and Bitfinex Legal Troubles

    The CEO of social trading platform eToro, Yoni Assia, took to Twitter to opine about the revelation’s likely impact on crypto prices. He mused on the likelihood of a potential Bitcoin price pump if the news causes people exit USDT en masse. Ultimately, however, he admits that the shady goings on between Tether and Bitfinex will be negative for crypto. Although, he is sparse on specific details.
    Yoni Assia
    ✔@yoniassia

    Are the news supposed to pump or dump BTC ? Its bad news, but if $2B USDT get exchanged to BTC it actually increases its price... what a predicament . Tether Lawyer Admits Stablecoin Now 74% Backed by Cash and Equivalents https://www.coindesk.com/tether-lawyer-confirms-stablecoin-74-percent-backed-by-cash-and-equivalents … via @CoinDesk

    28
    12:27 PM - Apr 30, 2019
    Twitter Ads info and privacy

    Tether Lawyer Confirms Stablecoin 74 Percent Backed by Cash and Equivalents - CoinDesk

    Tether's general counsel acknowledges that USDT is only 74% backed by cash and equivalents in a new affidavit.

    coindesk.com
    Meanwhile, independent crypto researcher and analyst Hasu seemed to hint that the debacle would inevitably invite greater regulatory scrutiny to exchanges, which could in turn damage the utility of Bitcoin and other crypto assets:
    Hasu@hasufl

    I'm not surprised that bitcoiners have a soft spot for Tether/BFX. Lightly-regulated fiat on/off ramps are part of bitcoin's extended security model. Bitcoin is less useful when every way in and out is US-regulated. They accept that this increases the risk of getting cheated.

    Larry Cermak@lawmaster
    Replying to @lawmaster

    Anyone who rationalizes this shit is a god damn hypocrite. It’s going against the exact values that bitcoin was meant to uphold. And it's funny since most of these people defending Bitfinex usually turn out to be shareholders

    84
    12:38 PM - Apr 30, 2019
    Cardano (ADA) founder and Ethereum (ETH) co-founder Charles Hoskinson used the news to draw attention to the fact that banks routinely operate on far lower reserves than those admitted by Tether today. This sentiment was also echoed by RT’s Max Keiser and many others.
    Charles Hoskinson@IOHK_Charles

    Well at least tether has more backing than my bank account https://www.coindesk.com/tether-lawyer-confirms-stablecoin-74-percent-backed-by-cash-and-equivalents …

    452
    11:55 AM - Apr 30, 2019 · Colorado, USA

    Tether Lawyer Confirms Stablecoin 74 Percent Backed by Cash and Equivalents - CoinDesk

    Tether's general counsel acknowledges that USDT is only 74% backed by cash and equivalents in a new affidavit.

    coindesk.co
    Ultimately, such a comparison is largely redundant, however, as any form of fractional reserve backing USDT the anti-thesis of what many people in crypto signed up for when they got involved with the industry. Larry Cermak, an analyst with The Block, stated that comparisons between the percentage reserves held by Tether and those of the average bank ultimately ignore the shady goings on of the crypto exchange Bitfinex. He went as far as to state that both companies are guilty of pathological lies:
    View image on Twitter
    Larry Cermak@lawmaster

    So all of the sudden it’s fine that Tether only has 74% of cash on hand because banks are even worse? And it’s fine that Tether as well as Bitfinex pathologically lie about anything they can get away with?

    235
    12:07 PM - Apr 30, 2019
    The Tether/Bitfinex saga is far from over yet. NewsBTC will continue to bring you coverage of the legal hearings as they develop.
    Featured Image from Shutterstock.
     
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