According to a lot of research groups, Bitfinex and Tether have reportedly been “partners in crime” in a lot of malicious activity that has surrounded either the exchange or the stablecoin. The ugly relationship seems to be surfacing again as a recent research released by Elements Group suggests that Bitfinex is doing every bit to defend the Tether peg.
Bitfinex removes Tether token from circulation to transfer it to Tether
Element group has collated the series of news flow that has surrounded Bitfinex and Tether and has tried to conclude what seems to be happening at Tether and Bitfinex. The research tries to match the actual events that have transpired with the announcement and tries to find answers to fears that tether does not have sufficient reserves or that Bitfinex is insolvent are still just speculation at the moment. Although other findings do provide some conclusive evidence, one of the facts is definitely eye-catching. The report states that
Bitfinex itself has quietly acquired a large portion of Tether tokens and transferred them to the Tether Treasury, effectively removing these tokens from circulation. The report puts forward that
“Since October 3, Bitfinex has sent a total of 690 million Tether tokens from Bitfinex’s Tether wallet to the Tether Treasury. This has reduced the circulating supply from about $2.8 billion to $2.1 billion in a short time. Thus, Bitfinex has spent considerable resources to defend the Tether peg and in the absence of this buying pressure, it is likely that Tether could have flash crashed even further and caused, even more, selling in the broader cryptocurrency market.”
The report further states “The malicious explanation is that Bitfinex is doing all that it can to maintain the illusion that Tether is legitimate in a last-ditch attempt.” This kind off explains the dubious relationship between the two.
While the report speaks only about Bitfinex and Tether, the street is drawing various another conclusion from the facts presented. Ran NeuNer the “cryptomanran” tweeted the same facts drawing attention that Biggest holders of Tether today are treasury, Binance and Huobi, and Binance’s CEO, CZ is at top of the situation.
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
While the facts are out, all eyes will be on Bitfinex and Tether to come out and provide an explanation to these facts.
Will Bitfinex or Tether come out and clarify their stand on these findings? Do let us know your views on the same.
Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.