Following the Tether-Bitfinex tragedy, bitfinex finally has some good news. The company’s Chief Technology Officer Paolo Adoino confirmed on Twitter that the company has successfully raise 1 billion USDT in just ten days via private sales. Adoino said major companies both within and outside the crytpocurrency industry made investments of over 100 million each while users both inside and outside the industry raised over 1 million USDT.
Success owed to trust
Bitfinex had lost its good reputation following the court case against it in late April, so Many members of the crypto community on Twitter have questioned the authenticity of this statement by Bitfinex CTO. However, he is in a follow-up tweet said the success of the private sales leading to the raising of 1 billion USDT is owed to the investors’ trust in the company.
“…they know we are trustworthy, they recognize what we have been doing (without needing us bragging about it publicly) and they want us keep fighting for the industry whole. Their own words. Thank you everyone for the amazing support we got. We are impressed,” he wrote.
A major Bitfinex shareholder Zhao Dong had earlier said the company successfully raised $1 billion in hard and soft commitments in USDT for its Initial Exchange Offering which ended on 11 May 2019. The $1 billion, however, may not make it to the final stage as investors with soft commitments could pull out of the deal, but Zhao Dong said the company might not conduct a public sale as it already had enough for the IEO. The private sales ended on 11 May and the next phase which is a public sale may or may not hold.
Where to now?
The Tether-Bitfinex case is still on and in court for alleged loss of $850 million which Bitfinex is accused f using Tether (USDT) to cover up. The successful sales of the entire supply are expected to fill the gap left by the missing funds and probably let Bitfinex off the hook. The case had caused a dip in the entire cryptocurrency market which has been over as the market trends have changed since then.