Tether [USDT]’s volume should be seen as a ‘completely irrelevant metric’, says researcher

Tether [USDT] has been a topic that has been voraciously discussed across the board lately, with the Bitfinex-Tether scandal providing the ground for the controversy surrounding the stablecoin. Another controversial topic in the cryptocurrency industry was the issue of fake transaction volumes on many of the popular cryptocurrency exchanges.
The magnitude of the topic was so large that even Changpeng Zhao, the Chief Executive Officer [CEO] of Binance had raised red flags. This topic and Tether as a whole received another twist when Larry Cermack, the Director of Research at The Block, pointed out a few parameters when it came to the said volume. Cermak’s first tweet read:
“Can we please all admit that total USDT volume is a completely irrelevant metric? Just as total BTC/ETH/XRP volume. To show why I made a quick chart of what exchanges have the most Tether volume at the moment. How many of these have you guys even heard of? Maybe 10?”
The major exchanges in question were DOBI Exchange, BW, BitForex, OEX, CoinBene, IDAXm LAOKEN, Bit-Z, Bibox, and Coineal. According to The Block official, these exchanges did not just contain fake volumes, but were was illegitimately portraying 95 percent of the entire volume. Cermak further added:
“About 20% of USDT volume comes from OKEx DigiFinex, Huobi, HitBTC and ZB. These exchanges at least have “some” real volume but likely very very little as well. Based on my estimation, only about 5% of the total Tether volume is coming from exchanges that don’t fake the majority of the volume. And if I were to make an educated guess, at any given time, only a maximum of 15% of the total Tether volume is real.”
The ongoing issue had become such a major issue that CoinGecko even launched a feature called ‘Trust Score’ in a bid to combat fake trading volume by injecting liquidity using online traffic and order-book data. The data obtained from websites such as SimilarWeb was proposed to be used as it was much more difficult to fake web traffic statistics aggregated by third-party services.
Keeping in tandem with his research, Larry Cermak concluded that the exchanges which did not fake much volume included major players like Binance and Bitstamp, while exchanges like Huobi and HitBTC were branded as ‘likely fake but not the majority’.
The post Tether [USDT]’s volume should be seen as a ‘completely irrelevant metric’, says researcher appeared first on AMBCrypto.
Source: AMB Crypto

Bitcoin [BTC]: Binance research hints at ‘disruption with trading pairs’ as BTC pairs lose 38.9% market share

Binance exchange, even after its fair share of problems, has managed to retain its reputation throughout the cryptoverse. The cryptocurrency exchange recently released a research report that detailed the comeback of fiat-backed stablecoins, in terms of adoption and trading pair usage. It also highlighted the inevitable rise of many stablecoin-related projects that are aimed towards expanding the use-cases and reach of these coins, beyond USD barriers.
A comparison between the previous year and the current year’s 24 hour Quote Asset volume indicated the growing popularity of stablecoins on Binance.
Source: Binance
Quote asset volumes driven by stablecoins such as PAX, TUSD and USDC on Binance (denoted as USD(S)) recorded a 69% increase in the market share. Interestingly, the share of volume in BNB pairs also doubled during the same time period, making a jump from 0.69% to 1.41%. As a result, BTC pairs have lost almost 40% of its market share. The report attributed this change to the “introduction of several stablecoin pairs with new quote assets and base assets.”
Source: Binance
Out of all the trading pairs, USD Tether (USDT) saw the largest net inflow, with a total increase slightly below
$1 billion. Among the non-USDT stablecoins, USDC was the biggest gainer in circulating supply, seeing
an inflow of nearly 60 million USD in January. Out of other trending stablecoins, GUSD was the only stablecoin not to have an inflow in any of the four months, displaying a continual net redemption trend.
The post Bitcoin [BTC]: Binance research hints at ‘disruption with trading pairs’ as BTC pairs lose 38.9% market share appeared first on AMBCrypto.
Source: AMB Crypto

Tether Limited “Investing” in Bitcoin (BTC) is a Bullish Signal

Bitcoin (BTC) ranging but stable
A portion of Tether reserves was used to invest in Bitcoin (BTC)

Tether and iFinex, the parent company, are controversial though they play a crucial role in the ecosystem. Despite their claim that every USDT in circulation is pegged 1:1 against the USD, it appears that they are also investing in Bitcoin and other assets according to the latest Supreme Court transcript.
Bitcoin Price Analysis
The controversy around Tether Limited, the official issuer of USDT or Tether, appears to be perpetual. A few weeks after the New York office of the Attorney General accused BitFinex of fraud, it is now emerging that Tether Limited used some of their reserves to invest in Bitcoin and other “assets” extending beyond cash and its equivalent as mentioned in their homepage. Questioning this decision, New York Supreme Court judge Joel M. Cohen said:
“Tether sounded to me like sort of the calm in the storm of cryptocurrency trading. And so, if Tether is backed by Bitcoin, how is that consistent? If some of your assets are in a volatile currency that Tether is supposed to somehow modulate, that seems like it’s playing into what they are saying.”
While the role of BitFinex and Tether cannot be understated, their somewhat opaque operation is everything against blockchain principles. Therefore, this revelation will draw more questions weeks after BitFinex commingled with Tether (USDT) reserves.
Candlestick Arrangement

At the time of press, Bitcoin (BTC) is down 1.6 percent and back in red. Even so, the fact that prices is trending inside May 19th high low is bullish from an effort versus result perspective.
Although we expect BTC bulls to take charge and edge higher in line with our interpretation of candlestick arrangements, bears of May 17th may flow back if bulls fail to close above $8,500 as mentioned in our last BTC/USD trade plan.
If anything, it is crucial that buyers overcome this resistance, break above this minor consolidation as bulls aim for $10k. If not and prices print lower in days ahead, wiping out gains of May 19th as bears of May 16th and 17th flow back confirming the double bar bear reversal pattern, then prices may retest $6,600.
Technical Indicators
To reiterate our stance, buyers are in control. However, it is ideal that prices close above $8,500. Propelling this up thrust should be high transaction volumes exceeding 25k and most importantly 47k of May 13th. Conversely, any drop below $6,600 should be with equally high volumes halting our stance.
Chart courtesy of Trading View. Image Courtesy of Shutterstock
The post Tether Limited “Investing” in Bitcoin (BTC) is a Bullish Signal appeared first on NewsBTC.
Source: New feedNewsBTC.com

Tether Admits Using Part of its Reserves to Buy Bitcoin and other Assets

More details are emerging about embattled Tether following the lawsuit against the crypto project and Bitfinex. In the latest update, Tether has admitted to investing some of its reserves in Bitcoin. This came from the lawyer of the company who revealed it in a transcript of the court proceedings.
Before April 24th
Tether and Bitfinex were sued by the Attorney General of New York on the 24 of April after court documents were issued stating that Bitfinex used some reserves of Tether USDT to cover up for $850 million of users’ funds that were lost on the exchange. Counsel to Tether David Miller in court on the 16 of May admitted that Tether actually used some its reserves to invest in Bitcoin and other assets. The transcript of the hearing reads:
“Prior to the April 24th order … Tether actually did invest in instruments beyond cash and cash equivalents, including bitcoin, they bought bitcoin.”
Also Read: Tether only 74% Backed By Cash And Equivalents: Tether Lawyers
The good news for Tether, however, is that the presiding judge, Judge Joel M. Cohen granted it the permission to invest its reserves in other assets as part of its operations. The judge however issued a court injunction with the following orders, which is to last for 90 days. It says Tether shall not:
“Restrain access to credit lines on USD reserves held by Tether
Principals, executives, and agents of Bitfinex shall not receive distribution or dividends from funds received from Tether
Not tamper with the documents that NYAG originally requested”
The NYAG, however, can file for an extension of the injunction for up to 14 days.
What is next for Tether?
With this revelation, another new information has surfaced concerning the controversial stablecoin. The revelation is also a pleasant surprise for Bitcoin fans as it shows Bitcoin is becoming an investment in the places where such is least expected. What is next for Tether and what will be the next revelation on the stablecoin?
The post Tether Admits Using Part of its Reserves to Buy Bitcoin and other Assets appeared first on Coingape.
Source: CoinGape

Tether [USDT] worth 12 million sent from Tether treasury to unknown wallet

Tether has been the center of rumors and speculation for a long time; however, the rumors and speculations reached a peak when NYAG, Letitia James, filed a lawsuit against Bitfinex and Tether for defrauding investors by covering up losses.
The lawsuit might have subsided after the new injunction by New York Supreme Court, but it is likely to resurface again. As per data obtained from CoinMarketCap, the market cap of Tether increased by a couple hundred million in the past month, which adds fuel to the rumor surrounding the exchange. Moreover, about 12 million USDT was moved from Tether Treasury to unknown wallets as seen on Ether Scan.
Whale Alert tweeted:

4,994,990 #USDT (5,038,694 USD) transferred from Tether Treasury to unknown wallet
Tx: https://t.co/qmFoxe41y4
— Whale Alert (@whale_alert) May 21, 2019

The funds were split into two transactions, ~5 million USDT and ~6.7 million USDT sent from a single wallet 5754284f345afc66a98fbb0a0afe71e0f007b949 to wallet b1fa690155821bf9191d609593b556048aca517c and 7c7019a8a4e8f0b900b88a3efca951b73afab9e8. The sender has a balance of 42 million USDT.
Source: CoinMarketCap
In addition, the above chart by CoinMarketCap shows how the market cap of Tether [also circulating supply] has increased by over a $300 million in a month, i..e, $2.6 billion to $2.9 billion.
A Twitter user @casPiancey tweeted:

Tether just keeps pumping 'em out – ten million more ETH, too. Bitfinex gets a 10 for attitude and a 0 for logic. pic.twitter.com/kD1xmHGWwu
— Eloncarlo"USDT33kByJuly" (@CasPiancey) May 21, 2019

Moreover, according to The Block, Tether also admitted in court to investing some of its reserves in Bitcoin. The article stated:
“Prior to the April 24th order … Tether actually did invest in instruments beyond cash and cash equivalents, including bitcoin, they bought bitcoin.”
The post Tether [USDT] worth 12 million sent from Tether treasury to unknown wallet appeared first on AMBCrypto.
Source: AMB Crypto

South Korea Dominating the Bitcoin [BTC] Markets: Analyst

The Bitcoin bulls are more relentless than one might have predicted for the summer of 2019. At the beginning of the year, crypto-winter had bears calling bottom below $3000 and a prolonged crypto-winter in 2019. However, the prices have reversed handsomely to touch $8000 with altcoins gaining from the positive sentiments as well.
The break above $6000 levels was most surprising as bulls stretched the prices till $8000 resistance breaking instrumental Resistance & Support level near $6400 above $7000. These price surges were also triggered primarily during the trading hours of the Eastern Hemisphere. Reportedly, double-digit gains were recorded in cryptocurrencies from 0:00 to 4:00 Hours UTC during the last week.
South Korea Among Top 5 Currencies in FIAT-t0-Crypto Exchange
China was credited for the bull run unprecedented bull run. Analysts say that the traders might be motivated to exchange their Yuan with Bitcoins midst the US-China trade war. The sentiments about Bitcoin are also positive in other Eastern countries.
According to reports from Coinlib, the 24-hour volume from South Korean Markets is about $100 million. The volume from Japan is around $160 million and Chinese are around $321 million. The 24-hour reported volume in the US is around over $1 billion.
Furthermore, the volume of Tether is the highest with more than 60% of the market share. These can be divided arbitrarily between countries in through global exchanges.
Also Read: JP Morgan Confirms Bitcoin Price Surge Mimics 2017 Bull Run
Noticeably, the volume from China and Japan is greater, however, the volume reported for South Korea in the highest ever. Mati Greenspan, a Senior Market Analyst at eToro tweeted,
“South Korea is completely dominating this market.  According to CryptoCompare the SK exchange BithumbOfficial is seeing the highest levels of fiat to crypto volume by far.”
Fiat to Cryptocurrency Volume in Exchange (Tweet)
The total market capitalization of Bitcoin is around $130 billion, which is comparatively less than other globally distributed assets. Therefore, the growing positive belief for Bitcoin around the world is driving prices from all geographical regions.
Do you think Bitcoin will become the global reserve currency? Please share your views with us. 
The post South Korea Dominating the Bitcoin [BTC] Markets: Analyst appeared first on Coingape.
Source: CoinGape

NY Supreme Court Forbids Tether to Do Any Transfers to Bitfinex

NY Supreme Court Forbids Tether to Do Any Transfers to Bitfinex
The New York Supreme Court has ordered Tether to stop loaning funds to its associated exchange Bitfinex. The orders also include Tether not, distributing any funds to executives, employees or others except regular business-related purposes.
NY Supreme Court Forbids Tether to Do Any Transfers to Bitfinex

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Source: CoinSpeaker

Bitfinex: CTO confirms completion of private token sale; LEO raises expected $1 billion

In what could be an end, or rather a climax to the Bitfinex episode, the CTO of the controversy-riddled exchange, Paolo Ardoino, confirmed the completion of the private token sale. LEO, the exchange’s native token, was curated to raise $1 billion to rectify the undisclosed losses incurred by the exchange.
Bitfinex managed to raise $1 billion in just 10 days, confirmed Ardoino. The CTO added that participants in the token sale included “giants in our industry and outside.” The exchange in their whitepaper had confirmed that the private sale would be geared towards institutional investors, and the CTO confirmed that the invested sum was over $1 million each, attesting the same.
Ardoino’s May 13 tweet read,
Source: Twitter
Talking about the LEO sale, the CTO stated that the exchange was “trustworthy,” and that investors paid testament to the same by participating in the private token sale. He added that they want Bitfinex to “keep fighting for the industry whole,” recognizing that these were their words.
His follow-up tweet read,
Source: Twitter
In the whitepaper, Bitfinex had stated that LEO tokens could be purchased using the stablecoin Tether [USDT], which is operated by the common parent company iFinex. This was another reason for many in the cryptocurrency community to suspect the intentions of the exchange.
Of late, due to tensions with Bitfinex, BTC’s price on the exchange exhibited a considerable spread over other exchanges. However, that spread had reversed and BTC price on Bitfinex dipped below other rival exchanges like Coinbase, Bitstamp, and Gemini, after weeks of trading significantly above the same.
Ardoino clarified that the sale included “USDt or USDt equivalents,” after some confusion with eToro’s Mati Greenspan who questioned the $1 billion USDT sale corresponding to the stablecoin’s overall market cap. The CTO stated,
Source: Twitter
The post Bitfinex: CTO confirms completion of private token sale; LEO raises expected $1 billion appeared first on AMBCrypto.
Source: AMB Crypto

Official: Bitfinex LEO Whitepaper is Live, Noting $LEO as Utility Token on iFinex ecosystem

Ahead of the official update, debate on Bitfinex’s IEO of $LEO turned as a hot topic – nevertheless, reports also revealed that the pre-order saw oversubscribed. As an end to the hype, the exchange has finally released an official whitepaper of LEO token which seems to be a utility token.
Bitfinex LEO Whitepaper is Live
iFinex, the parent company of Bitfinex crypto exchange released Bitfinex’s $LEO whitepaper on May 05, 2019. It is aimed to raise $1 Billion and as such, it will issue 1 billion LEO tokens via Unus Sed Leo, a company based in the British Virgin Islands.
Per the whitepaper information, LEO token is a utility token which puts in public against USDT or Tether. During the token sale, participants can purchase 1 LEO by contributing 1 USDT to exchange’s pre-defined IEO sale. In $LEO’s detail whitepaper, the company states that issuer may also ‘accept other forms of consideration in its discretion. In addition, the peer-to-peer market of LEO: USDT will begin after the successful completion of the token sale. Moreover, it reads that;
Up to 1 billion Tokens will be issued by the Issuer. The Tokens will be sold in a private offering outside of the United States without the means of general solicitation or general advertising. Any Tokens that remain issued may be sold in the manner and times determined by the Issuer in its sole discretion.
Nevertheless, at the very beginning of 18 pages of the whitepaper, the company noted the restrictions to the U.S persons and US jurisdiction. It added;
The whitepaper further reveals iFinex’s current project as well as upcoming plans- it adds Bitfinex, Ethfinex Trustless, and Nectar as the ongoing project whereas the future projects in the list are Bitfinex Derivatives, eosfinex, iFinex IEO Platform , A Licensed & Regulated Security Token Exchange, Dazaar, Betfinex, Digital Assets on Lightning Network and μFinex.
Also Read: Bitfinex Vs. New York AG Case: $850 Million Lost? Here are the Facts and Updates
While the crypto community is familiar with the current projects of iFinex, the forthcoming project names are quite new which will bring new visions and services in the crypto landscape managed by iFinex.
The whitepaper further mentioned the hacking incident of Bitfinex exchange occurred during Aug 2016 which led the exchange to suffer from the loss of nearing 1,20,000 BTC. Adding that, it explains;
Bitfinex created a tradable Recovery Right Token (RRT) for BFX holders that converted BFX tokens into shares of iFinex.
The post Official: Bitfinex LEO Whitepaper is Live, Noting $LEO as Utility Token on iFinex ecosystem appeared first on Coingape.
Source: CoinGape

Tron’s Justin Sun Offers Help to Binance Depositing 7,000 BTC

Tron’s Justin Sun Offers Help to Binance Depositing 7,000 BTC
After the recent and most unexpected hack of the Binance exchange, in which 7,000 BTC were stolen, Justin Sun has publicly offered to donate 40 mln USDT to support the exchange and buy TRX, BNB, BTT and other coins with that money.
Tron’s Justin Sun Offers Help to Binance Depositing 7,000 BTC

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Source: CoinSpeaker

Bitfinex officially releases LEO whitepaper; token offered for USDT to raise $1 billion

Just as the market was starting to recover from New York Attorney General’s report on Bitfinex’s $850 million cover-up, Bitfinex decided to remedy their ordeal by issuing a $1 billion token offering. After a week of uncertainty, with the exchange’s parent company iFinex even hitting back at the NY AG, the official whitepaper for their LEO tokens has been released.
The whitepaper stated that the LEO tokens would be priced at 1 USDT. However, “other forms of consideration,” may also be accepted. A specific LEO:USDT market for peer-to-peer trading will be opened once the token sale has been completed.
A maximum sell cap of 1 billion USDT in LEO tokens has been placed by Bitfinex and this offering would be private and for sale outside the United States.
Bitfinex claimed that LEO tokens would be the epicenter of the iFinex ecosystem. The whitepaper read,
“LEO will be the utility token at the heart of the iFinex ecosystem. Token holders will experience benefits across the entire portfolio and are expected to obtain benefits from future projects, products, and services, whether or not detailed within this white paper.”
The exchange also stated that the proceeds from the sale of the LEO tokens will replenish the inner workings of the exchange, in terms of its working capital and general business expenses. Bitfinex highlighted, “capital expenditures, operating expenses, repayment of indebtedness and other recapitalization activities,” as being the sources for their revenue.
LEO tokens can be used to redeem fee reduction on either Bitfinex or EthFinex, the exchange added.
Post the announcement, several customers were interested in understanding the terms regarding the repurchasing and burning of tokens, since this token offering was seen by many as a scapegoat tactic. Bitfinex confirmed that they will buy back the tokens on a monthly basis for a price “equal to a minimum of 27% of the consolidated gross revenues of iFinex,” based on previous month’s calculations. This will carry on until no tokens are in public circulation.
Additionally, at least 95 percent of the net funds that may be retrieved from the regulatory authorities of the US, Poland and Portugal, will be “used to repurchase and burn outstanding LEO tokens within 18 months from the date of recovery.” Bitfinex also referenced its August 2016 hack, stating that 80 percent of the recovered net funds will be,
“Used to repurchase and burn outstanding LEO tokens within 18 months from the date of recovery.”
The exchange confirmed that private token sale would take place until 11 May, with the objective to sell 1 billion USDT tokens. Further, if fewer than the same are sold, the exchange will sell the remaining tokens at a time “it deems appropriate.”
The post Bitfinex officially releases LEO whitepaper; token offered for USDT to raise $1 billion appeared first on AMBCrypto.
Source: AMB Crypto

Kraken Arbitrage Opportunity increases by 5% Following Tether-induced Market Crash

As Bitfinex and Tether faced a lawsuit with charges of price manipulation, Tether and indeed the entire cryptocurrency market went on a downward trend that affected prices for a number of days. As the market recovered, Tether has also recovered with an increasing price that presented an opportunity to trade on Kraken for some quick profits. According to Diar, trading opportunity increased by 5% on Kraken during the comeback.
The Tether Fiasco
Tether USDT Price chart | Source: coinmarketcap.com
Towards the end of April, the attorney general of New York filed a case against Tether and Bitfinex Exchange which is operated by Tether owners. The suit alleged that Bitfinex used USDT to the tune of $850 million to cover up fund loss on the exchange. This did not only affect Bitfinex and Tether but the entire cryptocurrency market. on the 26 April, CoinDesk reported that USDT pegged the price of $1 fell to $0.955. In fact, the crypto market lost $10 billion in one day due to the lawsuit.
Kraken presents opportunities
Tether has since recovered to its pegged price of $1 as the market also recovered with Bitcoin pushing to break through $6,000. During the recovery process which took over 10 days, the market presented a rare trading opportunity on Kraken which has a much larger trading volume of over $170 million than OKCoin which has just about $5 million, as these are the only exchanges that support USDT/BTC trading pair.
Also Read: Coinmarketcap Excludes Bitfinex’s Bitcoin Price from Average Calculation
The Kraken opportunity did not last though and may be officially over as USDT is back to its pegged price of $1. The unique trading opportunity with USDT was due to other major stablecoins being in the green even as other cryptocurrencies crashed alongside Tether as reported by CoinDesk. Those major stablecoins are however in the reds at press time. A switch from Bitfinex to Kraken showed a consistently increasing profit from $58 on 25 April to $268 on 5 May as reported by Diar in its latest volume yesterday 6 May.
The post Kraken Arbitrage Opportunity increases by 5% Following Tether-induced Market Crash appeared first on Coingape.
Source: CoinGape

Bitfinex’s LEO tokens oversubscribed, claims Fundstrat’s Lee; positive sign for the exchange?

Bitfinex, the controversy-riddled cryptocurrency exchange last week revealed that it is planning an initial exchange offering [IEO] worth a whopping $1 billion. This token sale is spearheaded in order to make up for its undisclosed $850 million loss, and sources say it’s gaining a head of steam.
According to renowned Bitcoin bull, Fundstrat head of research Thomas Lee, the LEO tokens are “oversubscribed,” pointing to heightened popularity in the exchange’s offering. Lee added that this is a sign of increasing trust in the exchange, despite the fiasco of the previous weeks.
Lee’s May 6 tweet read:
“Hearing @bitfinex LEO is oversubscribed… again affirms our sense that the Bitfinex has earned the trust of its customers/clients… and generally speaks well of them”
The whitepaper for Bitfinex’s LEO tokens surfaced on Twitter via Zhao Dong, a shareholder of the exchange. According to the contents of the whitepaper, nearly the entire $850 million undisclosed loss, which the exchange claimed is locked up by US, Portugal and Poland’s regulatory authorities, will be used to burn the LEO tokens when retrieved.
However, if the account is not “unfrozen,” then the exchange will take four-to-five years to buy back the tokens, on the basis of the past two years’ profit projections.
Given this scapegoat tactic used by the exchange and the magnanimity of their $1 billion valuation, Lee had previously stated that this token supply could have a “short-term negative impact on $BTC.” He added that the supply shock to the market, in light of this temporary token, served to regain lost money would require the crypto market to “absorb” the supply.
Furthermore, if these transactions are all fiat-to-crypto i.e. if LEO tokens are purchased by fiat currencies, then this would mean new investors would enter into crypto, however, he contends this possibility “makes less sense.”
Regardless, the “oversubscribing,” of Bitfinex’s IEO tokens is a significant positive sign that despite the exchange using their parent company’s Tether [USDT] holding to cover up the $850 million loss, investors still hold it in good stead.
It should be noted that this comment by Lee came after the response from the exchange to the New York Attorney General’s May 5 allegations. iFinex, the exchange’s parent company claimed that the NYAG order was based on ‘inaccurate or incorrect facts and wrong legal standard.’
iFinex further stated that the NYAG order was ‘highly disruptive’ as it resulted in Tether’s reserves of $2 billion being frozen. The document added that the “massive regulatory overreach has no corresponding benefit” as there was no fraud and “much less harm that is either ongoing or irreparable”
The post Bitfinex’s LEO tokens oversubscribed, claims Fundstrat’s Lee; positive sign for the exchange? appeared first on AMBCrypto.
Source: AMB Crypto

Bitfinex Premium on Bitcoin Reminiscent of Mt. Gox’s “Good Old Days”: Vinny Lingham

Vinny Lingham, a leading trade analyst recently suggested a very ominous theory about the ‘Bitfinex Premium’ being charges for over a week now. It refers to the surcharge on Bitcoin being explicitly charged on the Exchange.
The ‘Bitfinex Premium‘ at 12: 40 Hours UTC on 4th May 2019 is around $320 w.r.t Coinbase and Bitmex. It is about 5% of the weighted average of the price of Bitcoin on Exchanges. While this has attributed to the rise in the price of Bitcoin [BTC], it makes traders apprehensive due to its consistent abnormality.
BTC/USD 1-Day chart on Bitfinex and Coinbase (TradingView)
It signified that the demand for Bitcoin on Bitfinex is exceeding sell orders will w.r.t. FIAT and other altcoins. Moreover, the arbitrage traders have not been able to sweep the profits from the difference, or they choose to abstain from the Exchange altogether.
Reminisce of the Issue at Mt. Gox?
Either way, while the price is in the green, the abnormality reminisce of one the biggest and most popular Exchange Theft in the history: Mt. Gox.
A lot has changed since then, like significant trading volume, better price discovery methods, and a more significant number of institutions and researchers including Governments that are tracking the blockchain and its price. Nevertheless, in accordance with the economic principle of ‘law of one price‘ of freely traded goods, it raises concerns about the situation at the particular Exchange.
Vinny Lingham, a leading chart analyst, and cryptocurrency trader reiterated this fact in a recent tweet. He said,
“Who remembers when a market premium started forming on Mt. Gox? Ahh, the good old days… “
The tweet is riddled with an ominous irony. The “good old days” Lingham is suggesting points to the early days in Bitcoin from July 2013-January 2014. During the time, the premium at Mt. Gox ranged above 10%. During that time, the price was letting a good story. However, it slowly built up to the destructive crash of 2014; the bear market extended for a year post the event.
Bitcoin Price from July 2013 to February 2014 (CoinMarketCap)
Nevertheless, the percentage of trading at Mt. Gox at that time was considerably higher than Bitfinex’s trade volume when compared to other Exchanges presently. However, the premium issue must be resolved soonly before the market is misled toward a disaster once again.
What do you think are some of the other views and theories about the Bitfinex Premium? Please share your views with us. 
The post Bitfinex Premium on Bitcoin Reminiscent of Mt. Gox’s “Good Old Days”: Vinny Lingham appeared first on Coingape.
Source: CoinGape

Bitfinex Set to Launch $1 Billion IEO as $850 Million in Funds are Still Frozen

Bitfinex Set to Launch $1 Billion IEO as $850 Million in Funds are Still Frozen
Next week Bitfinex is expected to issue an initial exchange offering (IEO) to gain $1billion through a token sale. It’s got transpired from the post made by Bitfinex shareholder Zhao Dong.
Bitfinex Set to Launch $1 Billion IEO as $850 Million in Funds are Still Frozen

Continue reading at Coinspeaker
Source: CoinSpeaker