USDT Transfers in Ethereum Up 6,000% in 2019

Tether (USDT) dominance in Ethereum is on the rise according to GlassNode, an on-chain market intelligence firm. Cumulatively, the amount of USDT transacted in Ethereum exceeds $100 billion, a 6,000% rise since early 2019. USDT is a stablecoin that is pegged 1:1 against the USD and several fiat currencies. It is officially issued by Tether Limited, a company that has links with Bitfinex, a Hong Kong-based cryptocurrency exchange.
USDT Statistics in Ethereum

#Tether adoption on #Ethereum still on the rise: $USDT cumulative on–chain volume just surpassed 100 billion USD.
That's an increase of more than 6000% since the beginning of 2019. pic.twitter.com/eoPKG9pEfq
— glassnode (@glassnode) November 19, 2019

With the shift to Ethereum, USDT transactions are now more active and even harder to track. Combined, Tether’s smart contracts have spent over 2,000 ETHs in Gas as per data from ETHGas Station. This translates to $367k paid as fees with each transaction billed at 21.1 GWei. It is over 10X more than those paid by IDEX smart contracts.
There are 562,969 USDT holders generating 11,734,646 transfers pushing Tether’s diluted market cap to $2.03 billion. Overall, the token circulating supply stands at $4.12 billion with a market cap of $4.124 billion at the time of press.
USDT Token Holders
At this rate, USDT smart contracts burn 10.49% of all Gas with average GWei fluctuating depending on supply and demand forces. When there is a noticeable rise or fall in Bitcoin prices, USDT activity tends to spike.
Tether Limited’s Objective
According to a circular from Tether Limited, the company has made headway in allowing users to send value over the blockchain without the inherent risk of volatility and complexity associated with free floating cryptocurrencies.
By rolling out a stablecoin on Ethereum and complying with the ERC-20 standard, a guide used by most fungible tokens generated on the smart contracting platform, users enjoy faster confirmation times, low transaction fees than they would have on the Omni Protocol.
ETH Falls to Third Place
Earlier, a report by Bloomberg revealed that USDT was rapidly catching up with ETH and BTC as a preferable means of payment. Statistics published by CoinPayment showed that USDT popularity surged 30% as merchants were attracted to the token’s non-volatility and low transaction fees. BTC related payment shrunk to 60% from 80% with ETH dropping to third as USDT climbed to second.
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Source: CoinGape

Tether Announces Support for McCormack against Craig Wright Libel Suit

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Tether Announces Support for McCormack against Craig Wright Libel Suit
Tether has announced that it will fully support Peter McCormack in defending a libel suit brought by self-proclaimed Satoshi, Craig Wright.
Tether Announces Support for McCormack against Craig Wright Libel Suit

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Source: CoinSpeaker

Constant’s Customized P2P Lending Terms and Rates Fuel Platform’s Impressive Growth

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Constant’s Customized P2P Lending Terms and Rates Fuel Platform’s Impressive Growth
The increasing competition among borrowing/lending platforms, stablecoins, derivatives, and cross-chain CDPs indicates a new era in fintech innovation.
Constant’s Customized P2P Lending Terms and Rates Fuel Platform’s Impressive Growth

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Source: CoinSpeaker

Bitcoin All-Time High Organic, Not Single Whale Manipulation, Says Vaneck Analyst

Researchers behind an earlier study claiming that US Dollar Tether (USDT) was the cause of the 2017 Bitcoin bull market peak now claim that a single large holder drove the price upwards. However, an analyst at VanEck believes this to be nonsense.
Instead, Gabor Gurbacs claims that the rise was caused by “organic bitcoin and crypto demand”. Tether, the company behind USDT has also called the research “foundationally flawed” and that it was likely published to support a “parasitic lawsuit”.
Did Bitcoin Nearly Hit $20,000 Organically, or Was it Helped up by a Lone Whale?
According to a report in Bloomberg, University of Texas Professor John Griffin and Amin Shams from Ohio State University have updated their 2018 paper relating to the massive Bitcoin price rise in 2017. The two academics now claim that the manipulation was the work of a single large holder of Bitcoin, popularly known as a “whale”.
Griffin commented:
“Our results suggest instead of thousands of investors moving the price of Bitcoin, it’s just one large one.”
The researchers still claim that USDT was used in the manipulation. They observed that Bitcoin purchases increased on the Bitfinex exchange platform whenever the price fell by certain amounts. They have not speculated as to the identity of the whale they believe to be behind the price manipulation. The paper reads:
“This pattern is only present in periods following printing of Tether, driven by a single large account holder, and not observed by other exchanges.”
They added that such patterns are unlikely to be the result of chance and that one massive trader had “an extremely large price impact on Bitcoin”.
However, Gabor Gurbacs, an analyst at fund management firm VanEck, refutes the study. He alleges that those behind it do not understand the Bitcoin market structure. Instead, he believes that no such manipulation took place and the epic price run that took Bitcoin just short of $20,000 was “organic”.

I continue to be disappointed by career academics that fail to understand Bitcoin/crypto market structure basics as well as the fundamentals of cause and effect. The rise of tether is a result of organic bitcoin and crypto demand in periods of hyper growth.https://t.co/fMyhwPC5oa
— Gabor Gurbacs (@gaborgurbacs) November 4, 2019

Similarly, General Counsel at Tether, Stuart Hoegner, says that the study has no merit. He claims that the updated study still lacks “academic rigor”. Agreeing with Gurbacs, he told the publication that the large increase in Bitcoin prices were the result of growing interest in Bitcoin, which in turn drove demand for USDT. He also added:
“This is a transparent attempt to use the semblance of academia for a mercenary money grab.”
Tether and Bitfinex have been no stranger to such controversy over the years. In an ongoing case, New York Attorney General Letitia James alleges that the companies’ executives attempted to cover up $850 million of missing funds. However, Bitfinex say that the case is full of errors. Hoegner believes that the latest study has been produced to support the case against the firms.
 
Related Reading: Bitcoin Signal That Preceded 42% Price Jump to $10,500 Flashes Again
Featured Image from Shutterstock.
The post Bitcoin All-Time High Organic, Not Single Whale Manipulation, Says Vaneck Analyst appeared first on NewsBTC.
Source: New feedNewsBTC.com

Bitcoin Hit $20K in 2017 from Manipulation by One Single Market Whale

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Bitcoin Hit $20K in 2017 from Manipulation by One Single Market Whale
According to recent findings, the surge of Bitcoin price in 2017was a result of market manipulation from one single whale, using USDT.
Bitcoin Hit $20K in 2017 from Manipulation by One Single Market Whale

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Source: CoinSpeaker

Bitcoin Whale Single-Handedly Caused The 2017 Crypto Bull Run – Report

Bitcoin’s astronomical surge in 2017 was possibly triggered by market whales as suggested by a Texas academic. Interestingly, a new theory is now surfacing that it was a single market whale who was responsible for causing the huge upsurge in price. 
Bitfinex and Tether Responsible for 2017 Bull Run
Per claims by the University of Texas Professor, John Griffin and Ohio State University’s Amin Shams said that Bitfinex and Tether were actively involved in the 2017 bull run.  Furthermore, Tether minted 2.8 billion USDT from 2017 to 2018 and used the token to “flood the Bitfinex exchange and purchase other cryptocurrencies”. Subsequently, the demand for cryptocurrencies got artificially inflated which then caused a massive surge in cryptocurrency prices. Purportedly, the largest bubble in human history was created only to burst in a month’s time drowning $450 Billion of value. 
The complaint further mentions that the companies’ “liability to the putative class likely surpasses $1.4 trillion U.S. dollars”.
“Our results suggest instead of thousands of investors moving the price of Bitcoin, it’s just one large one. Years from now, people will be surprised to learn investors handed over billions to people they didn’t know and who faced little oversight.”
 Griffin said in an interview. 
Tether Refutes Claims of Market Manipulation
Tether has time and again rejected claims with General Counsel Stuart Hoegner that the claims lacked any substance and were based on insufficient data set. Interestingly, Bitfinex and Tether are not new to controversies. The exchange is owned and operated by the same executives who control Tether. The tangled ownership has been under the watchful eyes of the US Justice Department, who had previously accused Bitfinex in April of trying to hide losses worth millions in customer funds. 
The authors examined Tether and Bitcoin transactions from March 1, 2017 to March 31, 2018. They concluded that Bitcoin purchases on Bitfinex increased whenever Bitcoin’s value fell by certain increments. Griffin and Shams continue to keep the name of the entity in close wraps. 
Griffin and Shams further said, 
“This pattern is only present in periods following the printing of Tether, driven by a single large account holder, and not observed by other exchanges“Simulations show that these patterns are highly unlikely to be due to chance. This one large player or entity either exhibited clairvoyant market timing or exerted an extremely large price impact on Bitcoin that is not observed in aggregate flows from other smaller traders.”
In his statement, Tether’s Hoegner was adamant that the allegations laid out in the paper are a farce and have no solid ground. 
“This is a transparent attempt to use the semblance of academia for a mercenary money grab. Updates or not, the paper lacks academic rigor.”
Hoegner said, 
He further added, 
Macroeconomic experts and stakeholders in the cryptocurrency ecosystem understand that it is the global rise of digital currency that has driven the markets and demand for Tether.”
Both Bitfinex and Tether received subpoenas in 2017 from the U.S. Commodity Futures Trading Commission.  The Justice Department has since opened a criminal investigation into whether Tether was being used to manipulate Bitcoin. Interestingly, neither the CFTC nor federal U.S. prosecutors have accused Bitfinex or Tether of any wrongdoing.
The post Bitcoin Whale Single-Handedly Caused The 2017 Crypto Bull Run – Report appeared first on Coingape.
Source: CoinGape

Tron and EOS Are Now among China’s Favourites in Latest Crypto Rankings

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Tron and EOS Are Now among China’s Favourites in Latest Crypto Rankings
China’s state-backed tech workgroup has released its fourteenth crypto rankings report, with Bitcoin ranked 11th, Tron – 2nd, and EOS (EOS) retaining the top spot
Tron and EOS Are Now among China’s Favourites in Latest Crypto Rankings

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Source: CoinSpeaker

Bitcoin’s ‘Death Cross’: Here’s what you need to know about Bitcoin’s pump

Bitcoin’s slump after the Bakkt announcement and another slump almost a month later was a dream come true for the shorts, but little did they know that their happy dream would turn into a nightmare soon. Yes, Bitcoin pumped a whopping 29.85% in less than 48 hours, a pump which led to the liquidation of […]
The post Bitcoin’s ‘Death Cross’: Here’s what you need to know about Bitcoin’s pump appeared first on AMBCrypto.
Source: AMB Crypto

Crypto Capital President Arrested for Alleged Drug Trafficking and Money Laundering

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Crypto Capital President Arrested for Alleged Drug Trafficking and Money Laundering
Authorities in Poland have successfully secured the arrest of the president of Crypto Capital.
Crypto Capital President Arrested for Alleged Drug Trafficking and Money Laundering

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Source: CoinSpeaker

Celsius Network Partners With Tether to Enable Users to Earn 12% Interest on USDT Deposits

In a recent update, Celsius Network has announced its collaboration with Tether (USDT). The latter boasts of a market cap worth $4 billion. 
Users Can Earn Upto 12% interest
The collaboration will allow users to easily deposit USDT in their Celsius wallet and also earn up to 12% annual interest. Moreover, the interest will be calculated daily and paid out weekly. Furthermore, users can choose to earn their interests in Bitcoin(BTC), Tether(USDT) or CEL tokens. Presently, the Celsius wallet supports 19 top currencies.
These include Bitcoin(BTC), Ethereum(ETH), Litecoin, etc.  Also, USDT has been added as a supported currency for the Celsius retail loan product. This, in turn, allows users to use the collateral of other digital assets they hold and borrow USDT with interests as low as 3.46% Annual Percentage Rate (APR). Furthermore, Celsius has recently decreased loan minimum of $1,500, thus making the loans more accessible to the public. 
From the COO’s Desk 
“We are excited to increase the utility and attractiveness of USDt for our users and our community. “We are always looking for ways to improve our product offerings for the benefit of our community, and this partnership with Celsius is a great use case.”
said Tether CTO, Paolo Ardoino,
At Celsius, we’re working toward mass adoption of cryptocurrencies by instilling confidence in crypto holders and providing financial services at rates unmatched by any bank or crypto alternative. Stablecoins, such as USDt, allow crypto holders to keep their funds in crypto, allowing for frictionless trades, while sidestepping the market’s lows and highs.”
said Alex Mashinsky, CEO of Celsius Network.
A look At Celsius Network’s Developments 
Celsius network has helped foster over $2.2 billion of coin loans since July 2018. Also, it has over $350 million in Assets Under Management (AUM) passed in customer deposits and collateral from loans under management. Furthermore, the network has distributed funds worth $4 million in interest payments. The firm has successfully managed to have great earnings in Bitcoin(BTC) and Ethereum (ETH) and has returned up to 80% of its revenue to depositors. 
Celsius Network Receives Backlash From Crypto Twitter
In a recent tweet, Alex Mashinsky, the founder of Celsius Network claimed that the Celsius Network was bigger than” ALL DeFi put together”. The comment wasn’t received too well by crypto Twitter who criticized Mashinsky for his “shallow move” and told him that his claim was wrong.  Citing the example of Maker, a decentralized lending facility built on the Ethereum blockchain, he said that the Celsius Network was giving back 80% of what it received to the community, while DeFi projects including Maker were keeping 50% of their earnings for themselves. With a rhetorical question, he suggested that DeFi was not acting in the best interests of the users.
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Source: CoinGape

15 Million USD-Tether Swapped from Ethereum to Tron – Here’s How they Stand Now

A whale transaction of $15 million USDT minted at Tether triggered a hype momentarily. However, Paolo Ardoino, the CTO of Bitfinex and Tether, soon clarified that it was a chain swap from ERC-20 to Tron.

Chain Swap, ERC20 to Tronhttps://t.co/Bgja5EqMjEhttps://t.co/LIfgMI1rp4
— Paolo Ardoino (@paoloardoino) October 21, 2019

Minting or burning USD-Tether has had predominant effects on the price of Bitcoin. The volume of USDT has not only increased by 122% in 2019, but it has also acted as a lead indicator for the price of Bitcoin. The daily volume of USDT and Bitcoin are also comparable.
Ardoino also notified Whale Alert to configure their alert system to report swaps differently, he tweeted,
Would be nice to have a better notification for chain swaps.

Would be nice to have a better notification for chain swaps. Kind of:—-if (from_tx0 == exchange_wallet && dest_tx0 == tether_treasury && source_tx1 == tether_treasury && dest_tx1 == exchange_wallet) { tweet_text += ' [chain swap]'}—-CC @whale_alert pic.twitter.com/t22jjhrxYE
— Paolo Ardoino (@paoloardoino) October 21, 2019

Comparative Volume of Ethereum and Tron on Tether
Furthermore, Tether operates on three different chains – Omni, Ethereum, EOS, Tron and Liquid. The latter four were introduced in the past year. With low volumes of transactions via cryptocurrencies and DApps, Tether transactions account for a considerable portion of crypto transactions.
Also Read: UNICEF Initiates Crypto Fund, Beginning with Bitcoin and Ethereum Donations
The swap of $15 million from Ethereum to Tron is huge. However, in comparison to the total volume of USDT based on ERC-20 tokens, it still has a long way to go.
Amount USDT Tether Issued on ETH, TRX, EOS, OMNI and Liquid (Source)
According to the Tether transparency update, the amount of USDT issued on Ethereum is 7.2 times greater than Tron. In total, 4.4 Billion USD-Tether is in circulation currently. Moreover, the total amount of 40 million Euros and about 23 million Chinese Yuan are issued in Ethereum only.
Apart from the dominance of Tether, Ethereum seems to be gaining limelight from the tentative launch of Futures approved by the CFTC. Hence, despite the criticism of its scalability and uncertainty around the Ethereum 2.0 launch, the platforms still seem to be leading the space.
Do you think that other smart contracts platforms like EOS, Tron, Cardano, NEO and so on will be shadowed by Ethereum again? Please share your views with us. 
The post 15 Million USD-Tether Swapped from Ethereum to Tron – Here’s How they Stand Now appeared first on Coingape.
Source: CoinGape

Binance to Introduce First Fiat-Crypto Trading Pair with Russian Ruble

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Binance to Introduce First Fiat-Crypto Trading Pair with Russian Ruble
Binance CEO Changpeng “CZ” Zhao announced that they are preparing for launching fiat options, including the Russian ruble.
Binance to Introduce First Fiat-Crypto Trading Pair with Russian Ruble

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Source: CoinSpeaker

Tether’s migration from Omni to ERC-20 protocol reaches near completion

USDT, the leading stablecoin in the cryptospace, has a market dominance of over 90%. And, since it is one of the primary sources of liquidity on a majority of the exchanges, it has shot its daily trading volume above Bitcoin in recent times. The stablecoin this year decided to move from the Bitcoin-focused Omni-protocol to […]
The post Tether’s migration from Omni to ERC-20 protocol reaches near completion appeared first on AMBCrypto.
Source: AMB Crypto

Tether’s tether with Bitcoin might be severed: Addressing the scenarios of Tether armageddon

“If Tether went away, it would flood somewhere else” Disclosure This article addresses hypothetical scenarios and speculations surrounding Tether and how it will affect the cryptocurrency ecosystem. Tether is perhaps one of the most important and largest entities in the cryptocurrency ecosystem with a market share of more than $4 billion. Tether was launched in […]
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Source: AMB Crypto

Tether more transparent than most banks: VanEck’s Gabor Gurbacs

Recently, Gabor Gurbacs, Director at the investment management firm VanEck, posted a tweet in support of the popular, but controversial stablecoin pegged to the U.S. Dollar, Tether. This tweet comes just one day after Tether became the subject of a class action lawsuit, one alleging that the stablecoin caused $1.4 trillion in damages to the […]
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Source: AMB Crypto