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Tether/Dollar parity is back to 1:1. And the Bitfinex Bitcoin price is back to parity with Coinbase and Bitstamp.

submitted by simplelifestyle to Bitcoin [link] [comments]

CoinMarketCap excludes Bitfinex Bitcoin pricing from price average

CoinMarketCap excludes Bitfinex Bitcoin pricing from price average submitted by Zoranth to GetCryptocurrency [link] [comments]

NY AG Goes After Bitfinex; Bitcoin Price Drops

NY AG Goes After Bitfinex; Bitcoin Price Drops submitted by bitnewsbot to bitnewsbot [link] [comments]

Poloniex and Bittrex Added to Ongoing Class-Action Lawsuit Facing Tether and Bitfinex Over Bitcoin Price Manipulation

https://blockchain.news/news/poloniex-bittrex-class-action-lawsuit-tether-bitfinex-bitcoin-price-manipulation
submitted by angehugr to CryptocurrencyICO [link] [comments]

/u/zanetackett, Director of Community & Product Development for Bitfinex, says r/btc is "pretty much /r/buttcoin, but instead of hating all crypto they just hate bitcoin and love alts." During Bitcoin's pre-halving rally from $450 to $780, Bitfinex suddenly crashed, helping push the price below $600

https://np.reddit.com/BitcoinMarkets/comments/4qjryo/daily_discussion_thursday_june_30_2016/d4u3lcq?context=1
OK, so let's review some strange recent events involving Bitfinex:
Bitcoin's price was in the 400s (USD) all through March-April-May and then suddenly started skyrocketing in June (about one month before the halving), reaching $780 on June 21.
And then, suddenly, that rally died when Bitfinex mysteriously went offline on June 21.
You can clearly see the massive rally and the abrupt crash on the chart below, covering the time period from mid-March to July 1, 2016:
https://bitcoincharts.com/charts/bitfinexUSD#rg30zigHourlyzczsg2016-03-11zeg2016-07-01ztgSzm1g10zm2g25zv
So, on June 21, in the middle of Bitcoin's incredible pre-halving price rise, one of the top Bitcoin exchanges - Bitfinex - suddenly went offline for a few hours due to "technical difficulties" - and the Bitcoin price immediately crashed from $780 to under $600, temporarily killing Bitcoin's first major pre-halving rally.
Nobody knows if it was purely a coincidence that Bitfinex suddenly went offline in the middle of Bitcoin's first major pre-halving rally.
But pretty much everyone does agree that the Bitfinex crash was at least one major factor in interrupting the rally, pushing the price from $780 to under $600.
So, now that Bitfinex's Director of Community & Product Development Zane Tackett zanetackett has come out making bizarre statements attacking btc today, maybe we should keep more of an eye on this particular exchange - and we should also continue asking why they apparently had no backup or redundancy or disaster recovery plan which might have prevented their June 21 crash.
I always thought zanetackett was a nice guy, helpfully responding to traders' customer service questions on /BitcoinMarkets. Now I'm not so sure about him - or about the exchange Bitfinex which he represents.
Further down in that thread, I asked him the following questions:
Should we interpret your blithe dismissal of btc to mean that:
  • You support the censorship on r\bitcoin?
  • You oppose simple, safe interim scaling via moderately bigger blocks?
(since these are two of the main things which much of btc is usually arguing in favor of.)
Hopefully he will respond eventually.
https://np.reddit.com/BitcoinMarkets/comments/4qjryo/daily_discussion_thursday_june_30_2016/d4upu07?context=1
Here are some posts from BitcoinMarkets talking about the Bitfinex crash of June 21, 2016:
Bitfinex' actions today are bordering on criminal. Take it as a general warning.
yes I'm mad. ... I lost money because i was not allowed to have my BTC when they fucked their trading engine. I saw the market slide yet could do nothing.
If this doesn't tell all of us to stay the fuck away from Bitfinex in the future, I don't know what will.
https://np.reddit.com/Bitcoin/comments/4p4vv6/bitfinex_actions_today_are_bordering_on_criminal/
What is going on right now?
I've been told something to do with Bitfinex is causing the crash?
https://np.reddit.com/Bitcoin/comments/4p1yrn/what_is_going_on_right_now/
Can exchanges stahp dropping the soap during this critical time - Bitfinex we are looking at you.
It would be great if we could continue peacefully into our rally without some exchange needing to 'investigate' some shady shit that just happened.
https://np.reddit.com/Bitcoin/comments/4p2v0u/can_exchanges_stahp_dropping_the_soap_during_this/
Bitfinex ignored warnings about their "networking issues"
Why did Bitfinex not warn their customers, if they were fully aware of severe "networking issues" at least 3 days before they halted trading?
Why did Bitfinex ignore warnings?
https://np.reddit.com/BitcoinMarkets/comments/4phbp5/bitfinex_ignored_warnings_about_their_networking/
submitted by ydtm to btc [link] [comments]

Understanding Tether: Why it accounts for a substantial part of the crypto market cap and why its the #1 outstanding issue in crypto markets today

In this post I will go in-depth on:
  1. How Tether got to be what it is today
  2. Why Tether's market cap is a lot more than 0.5% of the total market cap for crypto you see on CoinMarketCap
  3. Tether printing timing
  4. Tether reserves
  5. What could happen to the market if Tether is found to not be backed by reserves
Tether is incredibly important to the cryptocurrency market ecosystem and I've noticed far too few people understand what is going on.
Very little actual discussion of the 2nd biggest crypto by volume happens here and whenever someone starts a discussion they most often got slapped for "FUD". Tether themselves recently hired the major New York based PR firm 5W to spread positive information online and take down critics, I'm sure some of their operatives are probably on Reddit.
But its absolutely critical you understand the risks behind Tether and especially now with the explosion in reserve liability, breakdown in relationship with banks and their auditor and recently announced subpoena.

What exactly is Tether and what happened so far?

Tether is a cryptocurrency asset issued by Tether Limited (incorporated in the British Virgin Islands and a sister company of Bitfinex), on top of the Bitcoin blockchain through the Omni Protocol Layer. It is meant to give people a "stablecoin", for example a merchant who accepts bitcoin but fears its volatility could shift bitcoin into tether, which can be easier to do than exchanging bitcoin for dollars. Recently they've also added an Ethereum-based ERC20 token. Tether Ltd claims that each one of the tokens issued is backed by actual US dollar (and more recently Euro) reserves. The idea is that when a business partner deposits US dollars in Tether’s bank account, Tether creates a matching amount of tokens and transfers them to that partner, it is NOT a fractional reserve system.
Tether makes the two following key promises in its whitepaper on which the entire premise is build:
Each tether issued will be backed by the equivalent amount of currency unit (one USDTether equals one dollar).
Professional auditors will regularly verify, sign, and publish our underlying bank balance and financial transfer statement.
Tether is centralized and dependent on your trust of Bitfinex/Tether Limited, and that the people behind it are honest people. For the new entrants to this market it will be greatly beneficial understand the timeline of Tether and their connection to Bitfinex.
A brief timeline:

Most common misconception: Tether is only a small part of the total market cap

One of the most common misconception people have about cryptocurrencies is that the "market cap" amount they see on CoinMarketCap.com is actually the amount of money that is invested in each coin.
I often hear people online dismiss any issue with tether by simply claiming its not big enough to cause any effect, saying "Well Tether is only $2.2 billion on CoinMarketCap and the market is 400 billion, its only 0.5% of the market".
But this misunderstands what market capitalization for cryptocurrency is, and just how different the market cap for Tether is to every other token. The market cap is simply the last trade price times the circulating supply. It doesn't take into account the order book depth at all. The majority of Bitcoin (and most coins) are held by those who either mined or purchased for a very low price early on and simply held on as very small portions of the total supply was rapidly bid up to their current price.
An increase in market cap of X does NOT represent an inflow of X dollars invested, not even close. A 400 billion dollar market cap for crypto does NOT mean that there is 400 billion dollars underwriting the assets. Meanwhile a 2 billion dollar Tether market cap means there should be exactly $2 billion backing up the asset.
Nobody can tell for sure exactly how much money has been invested in cryptocurrency market, but analysts from JPMorgan found that there was only net inflow of $6 billion fiat that resulted in $300 billion market cap at the time. This gives us a roughly 50:1 ratio of market cap to fiat inflow. Prominent crypto evangelist Julian Hosp gives the following estimate: "For a cryptocurrency to have a market cap of $1 billion, maybe only $50 million actually moved into the cryptocurrency."
For Tether however the market cap is simply the outstanding supply, 2.2 billion USDT is actually equal to 2.2 billion USD. In order to get $50 USDT you have to deposit $50 real U.S. dollars and then 50 completely new tokens will be issued, which never existed before on the market.
What is also often ignored is that Bitfinex allows margin trading, at a 3.3x leverage. Bitfinexed did an excellent analysis on how tether is entering Bitfinex to fund margin positions
There are $2.2 billion in Tether outstanding and the current market cap of the entire market is $400 billion according to CoinMarketCap. You can actually calculate Tether as a % of total fiat invested in the market according to the JP Morgan estimate, the following table outlines for a scenario of no margin lending and 15/25% of tether being on a 3.3x leverage margin account:
Fiat Inflow/Market Cap Ratio Tether as % of total market (no margin) Tether as % of total market (15% on margin) Tether as % of total market (25% on margin)
JP Morgan estimate (50:1) 27.5 % 36.9 % 43.3 %
Even without any margin lending Tether is underwriting the worth of about 27.5% of the cryptocurrency market, and if we assume only 25% was leveraged out at 3.3x on margin we have a whole 43% of the market cap being driven by Tether inflow.
A much better indicator on CoinMarketCap of just how influential Tether is actually the volume, its currently the 2nd biggest cryptocurrency by volume and there are even days where its volume exceeds its market cap.
What this all means is that not only is the market cap for cryptocurrencies drastically overestimating the amount of actual fiat capital that is underwriting those assets, but a substantial portion of the entire market cap is being derived from the value of Tether's market cap rather than real money.
Its incredibly important that more new investors realize that Tether isn't a side issue or a minor cog in the machine, but one of the core underlying mechanisms on which the entire market worth is built. Ensuring that whoever controls this stablecoin is honest and transparent is absolutely critical to the health of the market.

Two main concerns with Tether

The primary concerns with Tether can be split into two categories:
  1. Tether issuance timing - Does Tether Ltd issue USDT organically or is it timed to stop downward selling pressure?
  2. Reserves - Does Tether Ltd actually have the fiat reserves at a 1:1 ratio, and why is there still no audit or third party guarantee of this?

Does Tether print USDT to prop up Bitcoin and other cryptocurrencies?

In the last 3 months the amount of USDT has nearly quadrupled, with nearly a billion being printed in January alone. Some people have found the timing of the most recent batch of Tether as highly suspect because it seemed to coincide with Bitcoin's price being propped up.
https://www.nytimes.com/2018/01/31/technology/bitfinex-bitcoin-price.html
This was recently analyzed statistically:
Author’s opinion - it is highly unlikely that Tether is growing through any organic business process, rather that they are printing in response to market conditions.
Tether printing moves the market appreciably; 48.8% of BTC’s price rise in the period studied occurred in the two-hour periods following the arrival of 91 different Tether grants to the Bitfinex wallet.
Bitfinex withdrawal/deposit statistics are unusual and would give rise to further scrutiny in a typical accounting environment.
https://www.tetherreport.com
I'm still undecided on this and I would love to see more statistical analysis done, because the price of Bitcoin is so volatile while Tether printing only happens in large batches. Simply looking at the Bitcoin price graph over the last 3 months and then the Tether printing its pretty clear there is a relationship but it doesn't seem to hold over longer periods.
Ultimately to me this timing isn't that much of an issue, as long Tether is backed by US dollars. If Bitfinex was timing the prints then it accounts to not much more than an organized pumping scheme, which isn't a fundamental problem. The much more serious concern is whether those buy order are being conducted on the faith of fictitious dollars that don't exist, regardless of when those buy orders occur.

Didn't Tether release an audit in September?

Some online posters have recently tried to spread the notion that Tether has actually been audited by Friedman LLP and that a report was released in September 2017. That was actually just a consulting engagement, which you can read here:
https://tether.to/wp-content/uploads/2017/09/Final-Tether-Consulting-Report-9-15-17_Redacted.pdf
They clearly state that:
This engagement does not contemplate tests of accounting records or the performance of other procedures performed in an audit or attest engagement. Our procedures performed are not for the purpose of providing assurance...In addition, our services do not include determination of compliance with laws and regulations in any jurisdiction.
They state right from the beginning that this is a consultancy job (not an audit), and that its not meant to be assurance to third parties. Doing a consultancy job is just doing a task asked by your customer. In a consultancy job you take information as true from the client, and you have no mandate to verify whether your customer's claims are true or not. The way they checked is simply asking Tether to provide them the information:
All inquiries made through the consulting process have been directed towards, and the data obtained from, the Client and personnel responsible for maintaining such information.
Tether provided a screenshots of twp bank balances. One of these is in the name of Tether Limited, and while the other is a personal account of an individual who Tether Limited claims has a trust agreement with them:
As of September 15, 2017, the bank held $60,919,810 in an account in the name of an in individual for the benefit of Tether Limited. FLPP obtained an engagement letter for an interim settlement plan between that individual and Tether Limited and that according to Tether Limited, is the relevant agreement with the trustee. FLLP did not evaluate the substance of the letter and makes no representation about its legality.
Even worse is that later on in Note 1, they clearly claim that there is no actual evidence that this engagement letter or trust has any legal merit:
Note 1: FLLP makes no representations about sufficiency or enforceability of any trust agreement between the trustee and the Client
Essentially what this is saying is that the trust agreement may not even be worth the paper it’s printed on.
And most importantly… Note 2:
FLLP did not evaluate the terms of the above bank accounts and makes no representations about the clients ability to access funds from the accounts or whether the funds are committed for purposes other than Tether token redemptions
Basically Tether gave them a name of an individual with $60 million in their account according to a screenshot, Tether then gave them a letter saying that there is a trust agreement between this individual and Tether Limited. They also have account with $382 million but no guarantee that this account holds to any lien or other commitments, or that it can be accessed.
Currently Tether has 2.2 billion USDT outstanding and we have absolutely no idea whether this is actually backed by anything, and the long promised audit is still outstanding.

What happens if its revealed that Tether doesn't have its US dollar reserves?

According to Thomas Glucksmann, head of business development at Gatecoin: "If a tether debacle unfolds, it will likely cause quite a devastating ripple effect across many of the exchanges that see most of their volumes traded against the supposedly USD-backed cryptocurrency."
According to Nicholas Weaver, a senior researcher at the International Computer Science Institute at Berkeley: "You could see a spike in prices in tether-only bitcoin exchanges. So, on those exchanges only you will see a run up in price compared to the bitcoin exchanges that actually work with actually money. So you would see a huge price diverge as people see that only way they can turn tether into real money is to buy other cryptocurrency then move to another exchange. That is a bank run."
I definitely see the crypto equivalent of a bank run, as people actually try to secure their gains an realize that this money doesn't actually exist within the system:
If traders lose confidence in it and its value starts to drop, “people will run for the door,” says Carlson, the former Wall Street trader. If Tether can’t meet all its customers’ demand for dollars (and its Terms of Service suggest that in many cases it won’t even try), tether holders will try to snap up other cryptocurrencies instead, temporarily causing prices for those currencies to soar. With tether’s role as an inter-exchange facilitator compromised, investors might lose faith in cryptocurrencies more generally. “At the end of the day, people would be losing substantial sums, and in the long term this would be very bad for cryptocurrencies,” says Emin Gun Sirer, a Cornell professor and co-director of its Initiative for Cryptocurrencies and Smart Contracts.
Another concern is that Bitfinex might simply shut down, pocketing the bitcoins it has allegedly been stockpiling. Because people who trade on Bitfinex allow the exchange to hold their money while they speculate, these traders could face substantial losses. “The exchanges are like unregulated banks and could run off with everyone’s money,” says Tony Arcieri, a former Square employee turned entrepreneur trying to build a legally regulated exchange.
https://www.wired.com/story/why-tethers-collapse-would-be-bad-for-cryptocurrencies/
The way I see it, this would be how it plays out if Tether collapses:
  1. Tether-enabled exchanges will see a massive spike in Bitcoin and cryptocurrency prices as everyone leaves Tether. Noobs in these exchanges will think they are now millionaires until they realize they are rich in tethers but poor in dollars.
  2. Exchanges that have not integrated Tether will experienced large drops in Bitcoin and alts as experienced investors flee crypto into USD.
  3. There will be a flight of Bitcoin from Tether-integrated exchanges to non-Tether exchanges with fiat off-ramps. Exchanges running small fractional reserves will be exposed, further increasing calls for greater reserves requirements.
  4. The exchanges might slam the doors shut on withdrawals.
  5. Many exchanges that own large balances of Tether, especially Bitfinex, will likely become insolvent.
  6. There will be lawsuits flying everywhere and with Tether Limited being incorporated on a Carribean Island whose solvency and bankruptcy laws will likely ensure they don't ever get much back. This could take years and potentially push away new investors from entering the space.

Conclusion

We can't be 100% completely sure that Tether is a scam, but its so laiden with red flags that at this point I would call it the biggest systematic risk in the crypto space. Its bigger than any nation's potential regulatory steps because it cuts right into the issue of trust across the entire ecosystem.
Ultimately Tether is centralizing one of the very core mechanics of the cryptocurrency markets and asking you to trust one party to be the safekeeper, and I really see very little reason to trust Bitfinex given their history of lying and screwing over their own customers. I think that Tether initially started as a legit business to facilitate the ease of moving money and avoiding regulations, but somewhere along the lines greed and/or incompetence took over (something that seems common with Bitfinex's previous actions). Right now we're playing proverbial hot potato, and as long as people believe that Tether is worth a dollar everything is fine, but as some point the Emperor will have to step out from hiding and somebody will point out they have no clothes.
In the long term I really hope once Tether collapses we can move on and get the following two implemented which would greatly improve the market for all investors:
  1. Actual USD fiat pairings on the major exchanges for the major currencies
  2. Regulatory rules on exchange reserve requirements
I had watched the Bitconnect people insist for the last 2 years that everything about Bitconnect made perfect sense because they were getting paid daily. The scam works until one day it suddenly doesn't.
Tether could still come clean and avoid all of this "FUD" by simply getting a simple review of their banking, they don't even need a full audit. If everything was legit with Tether, it would be incredibly easy to have a segregated bank account with the funds used solely to back up Tether, then have an third party accounting firm simply review the account and a bank reconciliation statement then spend a few hours in contact with the bank to ensure no outstanding liabilities are held on that balance. This is extremely basic stuff, it would take a few hours to set up and wouldn't take a lot of man-hours for a qualified account to do, and yet they don’t do it. Why? Why hire a major PR firm and spend god knows how much money to pay professional PR representatives to attack "FUD" online instead?
I think I know why.
submitted by arsonbunny to CryptoCurrency [link] [comments]

Kucoin Hacked for $150 Million in Bitcoin; Bitfinex and Tether Freeze $33 Million of the Stolen Funds (current BTC/USD price is $10,719.25)

Latest Bitcoin News:
Kucoin Hacked for $150 Million in Bitcoin; Bitfinex and Tether Freeze $33 Million of the Stolen Funds
Other Related Bitcoin Topics:
Bitcoin Price | Bitcoin Mining | Blockchain
The latest Bitcoin news has been sourced from the CoinSalad.com Bitcoin Price and News Events page. CoinSalad is a web service that provides real-time Bitcoin market info, charts, data and tools.
submitted by coinsaladcom to CoinSalad [link] [comments]

Tether and the Global Markets Challenge

Disclaimer - Read the disclaimer.

The U.S. regulatory agency, SEC, regularly works with foreign countries governments and regulatory agencies when enforcing laws on foreign companies. There is more than ample case law and literature that will verify this. That does not apply to all, or even most U.S. or other countries laws. Most laws do not give jurisdiction to one country over another. We will use the example of the world famous KimDotCom and his website Megaupload.

As a Non U.S. citizen, the U.S.'s Department of Justice does not have the jurisdiction to send their agents to New Zealand to arrest him for violating US copyright. They must legally have New Zealand extradite him. This is obvious, or should be to most people. Which is exactly why he is still in New Zealand and not in the U.S. either in court or jail. He has been able to fight extradition for the last 6 years, and hopefully that's how it stays. However, there are certain things which does fall under the jurisdiction of foreign countries. I'm not even going to try to list them here as that isn't important.

The most important thing however is how the U.S. extends jurisdiction when they should have absolutely no legal grounds. Specifically this falls under the Dodd-Frank Act. "Under the Dodd-Frank Act, U.S. courts have jurisdiction over claims of securities violations brought by the SEC or DOJ that involve: 1) Significant steps in furtherance of a violation that occurred in the United States even if the transaction took place outside the United States; or 2) Conduct outside the United States that has a “foreseeable substantial effect” within the United States.”

The U.S. has on more than one occasion claimed jurisdiction over a foreign cryptocurrency exchange. Once for a lawsuit against Mt. Gox (Japan) from 2014 which is still ongoing in the state of Illinois in federal court. More details can be found here.

Again last year when the SEC and DOJ sought charges against BTC-e, a Russian Exchange, and it's owner Alexander Vinnik. Accordingly BTC-e's assets including domain, etc. was seized by the U.S. and charged with operating an unlicensed money service business, money laundering, and related crimes. Details of this case can be found here.

We now also have BCC lawsuits happening. Two have already been filed and a U.S. Judge issued an order to freeze their assets, they were provided 10 days to turn them over. If they decide to not do it since they can’t just be forced as the banking system can, they will then face criminal charges; Not just a lawsuit. More information here.

Now you know shit is serious when the U.S. Government acts faster on something than any other time in the last 200 years. Look no further than Tether and Bitfinex. Most exchanges pair the USDT coins and not USD. This is done so foreign exchanges don't have to worry about U.S. banking laws that any company dealing with USD is legally obligated to do but they are still able to pair things against the US dollar which we all see it listed as USDT/BTC. A vast majority of people will never notice nor even give this a second thought. Exchanges do this specifically because using the USD would subject them to U.S. banking laws but since Tether "USDT" is a coin and not money, exchanges don't have to follow U.S. banking laws. This creates an extra layer of protection for exchanges and they are able to operate much easier without accidentally breaking those or other U.S. money-laundering, know your customer, etc. laws; While they are still able to pair coins with USD thanks to the coins being set 1:1 with the U.S. Dollar.

Many in the community remember last year when Bitfinex announced they announced they were stopping all user activity for U.S. citizen accounts. This was done for a very specific reason, and if you research what Bitfinex did after the last hack of $70 million USD, you will understand why. I'm sure a lot of people that weren't around when the hack occurred wouldn't believe what the exchange did to their customers.

Anyway back to subject on hand. Including using the aforementioned way that exchanges protect themselves by pairing with USDT and not USD; Tether further protects itself by separating itself into multiple entities; Tether Limited (“TLTD“) for U.S. citizens, Tether International Limited (“TIL“) for all Non U.S. citizens for the purpose of issuing, use, etc. of the Tether coin. Tether "TIL", Tether "TLTD" and Bitfinex (owned by iFinex Inc.) are incorporated in Hong Kong. Last but not least, and most important. Tether Holdings founded in 2014, and iFinex Inc. are both based in British Virgin Islands. These are the only parts of Tether and Bitfinex that receive real money, actual US dollars, Euro's, Yen, etc.

Any exchange, wallet, etc. that accepts actual money payments dealing with cryptocurrency knows that by accepting real money they must follow AML/CTF laws of whichever jurisdiction that would apply. Hence why most all exchanges pair with USDT and not USD. Furthermore, most people are also aware that the British Virgin Islands, Cayman Islands, etc. are considered tax havens which is where both holding companies are incorporated. There is much more about Tether if anyone wants to look further. Information released in the Paradise Papers links both companies and finally sheds light on the people behind this. It should be easy for anyone following along to see the possible implications. For our purpose, all we need is know how the companies are structured. Which is why the media just reported on January 31st 2018 that the U.S. issued subpoenas to both Bitfinex and Tether.

 

NOTE: NEW INFORMATION FROM TODAY SHOWS SNAPSHOT OVERVIEW

 

If you didn't know what company it was that was structured in this way with multiple sister corps, parent corps, locations, etc. Most people would be baffled as to why any company would go through all that trouble. What practical reason could a cryptocurrency company, in a unregulated world, have to do that in the first place? Fraud is rampant and no one seems to ever go to jail. Even if doing the same thing in any other business would likely result in criminal charges. So why would any company go through all that trouble if they had nothing to worry about. Even if their entire goal is to defraud people such as "B-Connect", why would any foreign company dealing with crypto go through that much trouble in such an unregulated market? Number one that is substantially more expensive financially and also much more work that would have to be done. Not including the additional time and cost to hide that stuff

This is where we need to ask ourselves a question. Putting aside any thought of Tether committing fraud or whatever else is alleged. Let's just look at the basic facts: If foreign exchanges, etc. aren't subject to outside laws because they are located in a different country. Why would any of them use a coin in place of real money for pairings? Wouldn't it be easier no matter what to just pair listing against the dollar. USD/BTC or whatever fiat currency is paired against cryptocurrency. That would just create more accounting and unnecessary additional steps to convert crypto to fiat? No business would adopt a model like that if there was not a fundamental need for the extra work/cost/etc.

We first had to ask that question before we can even ask the next one. So if exchanges are protected from foreign country laws just by using USDT. Why would Tether, Bitfinex, "B-Connect" International for that matter, stop doing business with U.S. citizens if they use USDT and are not based in the U.S.? Why would it matter then if they do business with them? Maybe the reason they ensure that no U.S. citizen can do business with them is because U.S. law does still apply to them if they transact with them. By now everyone knows "B-Connect" was a Ponzi scheme, and if you have paid any attention, the U.S. is going after them tooth and nail. Yes "B-Connect" did have U.S. locations however "B-Connect" International which is the holding company of the new "B-ConnectX" is already up and running and is unable to be shut down since US citizens are not permitted to use that service now.

There is a much more serious risk at hand. A risk that will make the 2014 Mt. Gox crime, which destroyed market cap by over 80% and didn’t recover until 2017, look like a weekend robbery at a convenience store. From 2014 until January 2017 a total of 10 million USDT had been created. No one would even question if they had 10 million USD in a bank account to back each coin up. When Well’s Fargo terminated them as a customer at the end of March, start of April, the total USDT supply increased to 44 million. December 1st when the Paradise papers were released 440 million Tether. Apparently within a week subpoenas were issued, that right there should indicate the severity of the problem.

December 31st 2017 supply was well over 800 million USDT. Fast forward a month and the total is 2.2 billion USDT at the end of January 2018 when the MSM finally picks up on it. NYTimes was the first to have an article of the US mainstream news. To add to the horror show playing out in front of all of us Tether is now issuing a new USDT and EURT on the Ethereum blockchain. The 2.2 billion are on the omni layer protocol which on the Bitcoin blockchain. Note: The new ERC20 USDT and EURT are not intended to replace the USDT that are bitcoin based but rather to compliment.

The implications of this reach much further than the cryptocurrency markets. If you are unaware how Market Capitalization works I will simplify this. If the entire cryptocurrency market capitalization is 500 billion that does not mean that the equivalent amount of money has been put into the system. According to a previous report from JP Morgan since 2009 a total of 6 billion $USD actually entered into the cryptocurrency market and that gave it a 300 billion market capitalization. If you want a more detailed explanation of market capitalization you can look here.

Now what does this all mean? What does this have to do with you or anyone else? You might be saying I don’t have any USDT so why do I even need to care or pay attention. Well simply explained, if $6Bn USD can create a 300 billion market cap. $2Bn USD that technically isn’t there could remove much, much more than $2Bn of hard assets and money from the cryptocurrency market.

 

TL:DR

 

Tether is acting as if they are the U.S. Federal Reserve without having to guarantee the USD like the Federal Reserve and U.S. government. In the last few months leading up to the recent all time high’s (ATH) many stories came out of people taking out second mortgages so they could invest in Bitcoin. Multinational corporations have become involved. Even governments have either knowingly or unknowingly invested into it. One of the key players here was also a key player in the 2008 global financial collapse. Only a couple things can happen:

1. Tether has 20%-100% of the USDT backed up with US dollars. Everything should be okay except cryptocurrency now has a central bank.

2. They don’t have US dollars to back it up. Exchanges lock the doors as everyone creates a run on the bank trying to get out before or during the crash, investors lose everything, all $$$ in the system is extracted out by Tether. That will have a detrimental effect on global markets and could trigger the collapse of the stock market bubble which will also take out the housing bubble.

Conclusion:

No matter what, this is going to be a very painful ride. Even if they do have the money, the US will make sure it doesn’t continue. Chances of them having the $3Bn as one of their insider friends stated are slime to non existent.

On the bright side, we will witness the greatest theft mankind has ever seen.

Disclaimer:
Last updated: February 02, 2018
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submitted by PissedOfMiner to u/PissedOfMiner [link] [comments]

Bitfinex Wants Dismissal of Unfounded $1.4 Trillion Bitcoin Market Manipulation Lawsuit (current BTC/USD price is $10,160.15)

Latest Bitcoin News:
Bitfinex Wants Dismissal of Unfounded $1.4 Trillion Bitcoin Market Manipulation Lawsuit
Other Related Bitcoin Topics:
Bitcoin Price | Bitcoin Mining | Blockchain
The latest Bitcoin news has been sourced from the CoinSalad.com Bitcoin Price and News Events page. CoinSalad is a web service that provides real-time Bitcoin market info, charts, data and tools.
submitted by coinsaladcom to CoinSalad [link] [comments]

When You've Lost Vanity Fair...

The Tether chaos is emerging from the back pages of the crypto magazines (and Reddit subheads!) and going VERY mainstream.
The NY Times sounded the bell on Jan 31.
"Worries Grow That the Price of Bitcoin Is Being Propped Up"
https://www.nytimes.com/2018/01/31/technology/bitfinex-bitcoin-price.html
CNBC joined the chorus:
"All you need to know about tether, the cryptocurrency that could have 'devastating' effects on the market"
https://www.cnbc.com/2018/02/02/tether-what-you-need-to-know-about-the-cryptocurrency-worrying-markets.html
And the trifecta was completed with... Vanity Fair?
COULD PRICE MANIPULATION BE KILLING BITCOIN? As the cryptocurrency market gets more financially complex, it’s also becoming more volatile.
https://www.vanityfair.com/news/2018/02/could-price-manipulation-be-killing-bitcoin
A Senate subcommittee on banking will be grilling the heads of the SEC and CFTC about cryptocurrencies and the protection of the US investor on Feb 6. I would suggest a drinking game - one shot every time they ask about Tether.
OTOH, if they DON'T ask about Tether I will personally want about 10 shots. To the head.
https://www.banking.senate.gov/public/index.cfm/hearings?ID=D8EC44B1-F141-4778-A042-584E0F3B9D39
BONUS QUERY: If asked whether any US banks or crypto exchanges support Tether and the possible defrauding of US investors will the head of the CFTC say, "Sure, Kraken does and they are a reference exchange for the CME bitcoin contract."? NOT a crowd-pleasing answer!
Or will Kraken have dropped their support of Tether before Feb 6? And if they do, what will be the market impact?
Must See TV.
submitted by tom10023 to Tether [link] [comments]

Was the January rally faked?

““This became more and more concerning, because every time the markets went down, you have seen the same thing happen,” said Joey Krug, the co-chief investment officer at Pantera Capital, which runs several virtual currency hedge funds. “It could mean that a lot of the rally over December and January might not have been real.””
https://www.nytimes.com/2018/01/31/technology/bitfinex-bitcoin-price.html
submitted by jbabrams2 to BitcoinMarkets [link] [comments]

Worries Grow That the Price of Bitcoin Is Being Propped Up

Worries Grow That the Price of Bitcoin Is Being Propped Up
https://www.nytimes.com/2018/01/31/technology/bitfinex-bitcoin-price.html
Submitted January 31, 2018 at 03:21PM by klynstra - https://www.reddit.com/news/comments/7uf24c/worries\_grow\_that\_the\_price\_of\_bitcoin\_is\_being/?utm\_source=ifttt
via /news - https://www.nytimes.com/2018/01/31/technology/bitfinex-bitcoin-price.html
submitted by Laurelais-Hygeine to NoFilterNews [link] [comments]

[uncensored-r/Bitcoin] Worries Grow That the Price of Bitcoin Is Being Propped Up

The following post by Ditchdigger456 is being replicated because some comments within the post(but not the post itself) have been silently removed.
The original post can be found(in censored form) at this link:
np.reddit.com/ Bitcoin/comments/7uuh3a
The original post's content was as follows:
https://nytimes.com/2018/01/31/technology/bitfinex-bitcoin-price.html?referer=https://www.google.com/
submitted by censorship_notifier to noncensored_bitcoin [link] [comments]

Theres a Bitfinex “Whale” Looking to Buy Bitcoin in the High-$8000s (current BTC/USD price is $8,992.64)

Latest Bitcoin News:
Theres a Bitfinex “Whale” Looking to Buy Bitcoin in the High-$8000s
Other Related Bitcoin Topics:
Bitcoin Price | Bitcoin Mining | Blockchain
The latest Bitcoin news has been sourced from the CoinSalad.com Bitcoin Price and News Events page. CoinSalad is a web service that provides real-time Bitcoin market info, charts, data and tools.
submitted by coinsaladcom to CoinSalad [link] [comments]

Bitcoin Funds From the Bitfinex Hack in 2016 Moving. The said money transmission raised speculation of hackers dumping a portion of their 120,000 bitcoin steal after the cryptocurrency’s recent price rally.

Bitcoin Funds From the Bitfinex Hack in 2016 Moving. The said money transmission raised speculation of hackers dumping a portion of their 120,000 bitcoin steal after the cryptocurrency’s recent price rally. submitted by Mike_Fans_Club to CryptoMarkets [link] [comments]

Bitfinex Crypto Exchange Receives Huge Bitcoin (BTC) Buy Orders But Can Price Sustain $9,000?

Bitfinex Crypto Exchange Receives Huge Bitcoin (BTC) Buy Orders But Can Price Sustain $9,000? submitted by bitcoinexchangeguide to BitcoinExchangeGuide [link] [comments]

Another 77.64 #Bitcoin (about $800,000) from the #Bitfinex hack in 2016 was transferred by hackers on Tuesday to an unknown account. A total of 120,000 BTC✨ worth over $1.2 billion💰at the current price was stolen from the said exchange four years ago.

Another 77.64 #Bitcoin (about $800,000) from the #Bitfinex hack in 2016 was transferred by hackers on Tuesday to an unknown account. A total of 120,000 BTC✨ worth over $1.2 billion💰at the current price was stolen from the said exchange four years ago. submitted by Tokenncoin to Tokenncoin [link] [comments]

Andreas Antonopoulos files affidavit of support for law firm suing Bitfinex for manipulating Bitcoin’s price in 2017

Andreas Antonopoulos files affidavit of support for law firm suing Bitfinex for manipulating Bitcoin’s price in 2017 submitted by BitcoinXio to btc [link] [comments]

Bitcoin Worth $282K from the 2016 Bitfinex Hack on the Move (current BTC/USD price is $9,242.09)

Latest Bitcoin News:
Bitcoin Worth $282K from the 2016 Bitfinex Hack on the Move
Other Related Bitcoin Topics:
Bitcoin Price | Bitcoin Mining | Blockchain
The latest Bitcoin news has been sourced from the CoinSalad.com Bitcoin Price and News Events page. CoinSalad is a web service that provides real-time Bitcoin market info, charts, data and tools.
submitted by coinsaladcom to CoinSalad [link] [comments]

Is THIS The Real Reason Bitcoin Fell In Price? - Bitfinex Pays Back Tether $100,000,000 In FIAT

Is THIS The Real Reason Bitcoin Fell In Price? - Bitfinex Pays Back Tether $100,000,000 In FIAT submitted by DarkestChaos to CryptoCurrency [link] [comments]

Is THIS The Real Reason Bitcoin Fell In Price? - Bitfinex Pays Back Tether $100,000,000 In FIAT

Is THIS The Real Reason Bitcoin Fell In Price? - Bitfinex Pays Back Tether $100,000,000 In FIAT submitted by DarkestChaos to Bitcoin [link] [comments]

[Bitfinex Market Manipulation]: Study suggest a single whale on Bitfinex likely manipulated bitcoin price in 2017

[Bitfinex Market Manipulation]: Study suggest a single whale on Bitfinex likely manipulated bitcoin price in 2017 submitted by Egon_1 to btc [link] [comments]

How to buy and sell bitcoins on Bitfinex (Shorting / Bet Against), How to make profit while crypto prices dropping? (on Bitfinex) CoinMarketCap Excludes Bitfinex From BTC Average Price Will Bitcoin drop to 6500$? Tether and Bitfinex manipulation of Bitcoin price? Tutorial basico BITFINEX

The largest and most advanced cryptocurrencies exchange BTC/USD Bitfinex price chart in real-time. Stats on multiple timeframes, order book, news and trollbox. Coinalyze. Futures Data. Individual Charts; Global Charts; Technical Analysis. Bitcoin Ethereum Ripple Bitcoin Cash Binance Coin Chainlink Litecoin Cardano Bitcoin SV EOS Monero Crypto.com Coin Tron Stellar Lumens Tezos NEO UNUS SED LEO Cosmos NEM Iota VeChain Dash ZCash THETA Ethereum ... Get Bitcoin/USD Bitfinex (BTC.BF=:Exchange) real-time stock quotes, news and financial information from CNBC. Immediately thereafter, bitcoin's trading price plunged by 20%. After learning of the breach, Bitfinex halted all bitcoin withdrawals and trading. In that hack, the second-biggest breach of a Bitcoin exchange platform, 119,756 units of bitcoin. Significant hacker funds transactions were signed off by Bitfinex's security provider, without full security. Shortly after the hack, Bitfinex created ... Bitcoin Price – Bitfinex. The current price of BTC on Bitfinex is: 6,909.92 USD. Bitcoin (BTC) Long vs Short Distribution – Bitfinex. Bitfinex allows traders to take long and short positions across a number of tokens through margin and derivative trading tools. The long vs short data below displays total long positions versus short positions across the BTCUSD and ETHUSD markets on Bitfinex ...

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How to buy and sell bitcoins on Bitfinex

IOTA Fall 2017 Price Prediction - Duration: 13 ... How to buy and sell bitcoin on Bitfinex - Duration: 6:07. Yaliwe Soko 64,682 views. 6:07. IOTA vollständig & einfach erklärt 2020: Was ist es ... This video was about shorting or betting against the market. The demo is done on the Bitfinex platform but the fundamentals can be used anywhere! Thanks for watching the video and I hope that it ... So what is your opinion about Facebooks coin Libra date of launch? Are we going to see some kind of a bounce in btc price soon or we are going further lower? Are trading with Tether (USDT) pair ... Bitcoin bulls should expect pain ahead even as the cryptocurrency has added more than $1,000 to its value in the last five days. So says Joe007, a pseudonymo... How to buy and sell bitcoin on Bitfinex - Duration: 6:07. Yaliwe Soko 64,389 views. 6:07 . Live Bitcoin Trading With DeriBot on Deribit DeriBot Backup 233 watching. Live now; How to: Trade on ...

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