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
Fundamentals
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

NY Supreme Court Forbids Tether to Do Any Transfers to Bitfinex

Coinspeaker
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

Tron CEO Justin Sun Seems to be Unwilling to Give Promised Tesla Away

Coinspeaker
Tron CEO Justin Sun Seems to be Unwilling to Give Promised Tesla Away
Tron’s CEO Justin Sun provided the winners of his giveaway with a cash equivalent instead of Tesla cars. But the amount is lower than the real price.
Tron CEO Justin Sun Seems to be Unwilling to Give Promised Tesla Away

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Source: CoinSpeaker

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;
TOKENS WILL NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS AND OTHER PROHIBITED PERSONS
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

Coinspeaker
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

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

Coinspeaker
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

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Source: CoinSpeaker

Breaking: Bitcoin Price Hits New 2019 ATH, Exceeds $100B Market Cap

Coinspeaker
Breaking: Bitcoin Price Hits New 2019 ATH, Exceeds $100B Market Cap
Following Bitcoin, which hit its 2019 all-time-high, all cryptos are seeing growth in their prices. Some have increased slightly, others are enjoying a hike. 
Breaking: Bitcoin Price Hits New 2019 ATH, Exceeds $100B Market Cap

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Source: CoinSpeaker

Binance Effect: Cosmos (ATOM) Entering Top 15 Cryptos After Listing

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Binance Effect: Cosmos (ATOM) Entering Top 15 Cryptos After Listing
After its listing on Binance, the Cosmos (ATOM) crypto token got a huge boost and massive liquidity propelling the digital currency to new highs.
Binance Effect: Cosmos (ATOM) Entering Top 15 Cryptos After Listing

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Source: CoinSpeaker

Cryptocurrency market holding strong post Bitfinex-Tether fiasco is proof of crypto-winter’s end, claims Tom Lee

With the close of April, the cryptocurrency community can look back at one of the most tumultuous and exciting months in recent memory. From Bitcoin’s ascendance over $5,000 to the Bitfinex-Tether fiasco, April was a busy month for the cryptoverse. And according to many analysts, the market’s behaviour over the ensuing episodes is yet another sign of the crypto-winter’s departure.
Thomas Lee, Head of research at Fundstrat Global Advisors, is of this opinion. He backed the market’s ability to hold on to its high, despite the New York Attorney General’s report suggesting that Bitfinex borrowed over $700 million from their USDT reserves to cover up its undisclosed losses.
In a recent series of tweets, the heard researcher suggested that if this news broke out in “mid- to late-2018,” the crypto market would have fallen owing to “panic liquidations.” The “relative calm” in the overall market is a sign of the end of the crypto winter, he added.
His tweet read,
“If this tether #USD $USDT story broke in mid- to late-2018, the crypto market would probably seen panic liquidations across the board
Another sign crypto winter is ending? The fact that relative calm in crypto market despite tether news? @bitfinex @Bitfinexed”
However, Lee cautioned that a week’s holding behaviour wasn’t substantial evidence of a bullish swing. If  “this is still the case 2 weeks from now,” it would be another indication of the crypto-winter’s exit, he added.
The Bitcoin bull concluded his tweet by reaffirming his belief in the importance of the top cryptocurrency. Lee’s praise for Bitcoin does not fall far from the coin’s performance. In this month alone, the king coin managed to increase its market dominance from the cusp of majority to 54.2 percent, at press time.
Lee even responded to comments ridiculing the Tether news, comparing its lack of complete one for one backing to the top fiat currency in the market, the US dollar. Lee responded by taking a shot at the traditional financial sector, stating,
“The USD is an IOU anyways.”
The post Cryptocurrency market holding strong post Bitfinex-Tether fiasco is proof of crypto-winter’s end, claims Tom Lee appeared first on AMBCrypto.
Source: AMB Crypto

Tether only 74% Backed By Cash And Equivalents: Tether Lawyers

Tether has been the largest stablecoin in the crypto ecosystem. But its large stature is plagued by even larger controversy- the stablecoin is not backed by real dollars. While Tether has tried to clear the air around this controversy several times, the truth is finally out that the stablecoin is only 74% backed by Cash and Equivalents.
Tether Holds about USD 2.1 billion in Cash and Securities
Well, it seems the controversy around Tether is about to end and it’s going to have an ugly ending for Bitfinex and Tether. The company behind USDT, Tether seems to be holding only about $2.1 billion in cash and short-term securities which accounts to only 74% of the total Tether in supply. This fact was put forward  by Tether’s general counsel Stuart Hoegner in an affidavit which was presented in response on Tuesday with the Supreme Court of State of New York which was seeking to vacate or modify an injunction filed against them by the New York Attorney General last week in an effort to prevent disruptions to its business.
“The order effectively freezes a line-of-credit transaction among the respondents indefinitely and orders them to produce huge volumes of documents by this Friday,” according to the filing, made on behalf of Hong Kong-based IFinex Inc. and other affiliated companies.
This affidavit filing comes after the April 25 statement given New York Attorney General Letitia James who was quoted saying that the companies behind Tether and Bitfinex engaged in a cover-up to hide the “apparent loss” of $850 million of the co-mingled client and corporate funds.
The same report stated that it seemed that executives allegedly cooked up a series of “conflicted corporate transactions” in which Bitfinex gave itself access to up to $900 million of Tether’s cash reserves, which Tether repeatedly told investors fully backed its coin one-to-one, the attorney general said.
Also Read: Bitfinex Vs. New York AG Case: $850 Million Lost? Here are the Facts and Updates
While the official confirmation from Bitfinex or Tether is yet to arrive, the news has jolted the crypto community. Many believe a loss of faith in the stablecoin would be a major blow to traders who rely on it for liquidity on many of the world’s lightly regulated crypto exchanges. This would also impact the investor sentiment in cryptos and drive away investment from crypto markets.
Although this news was significant, the markets dint show much to it and continued its green. The same was quoted by Ran Neuner in his tweet

This morning news broke that Tether is 74% backed by Fiat & market cap increased by $4bn.This is not good news!
Was this pump people trading out of Tether to tokens or acceptance that 74% is a sufficient reserve?
Why is the market so accepting of the Bitfinex/Tether situation?
— Ran NeuNer (@cryptomanran) April 30, 2019

While news like this can erode overall market sentiments, it is surely not great news for Tether. If Tether doesn’t give a reasonable reply to this it could be the endgame for the largest stablecoin.
Is the end for Tether approaching? Do let us know your views on the same.
The post Tether only 74% Backed By Cash And Equivalents: Tether Lawyers appeared first on Coingape.
Source: CoinGape

Bitfinex Likely to Issue Native Exchange Token Through IEO to Recover Frozen Funds

Coinspeaker
Bitfinex Likely to Issue Native Exchange Token Through IEO to Recover Frozen Funds
After the latest seizure of funds by the NYAG office, Bitfinex is looking for ways to recover the funds. Conducting and IEO and issuing a native exchange token is one of the probable options.
Bitfinex Likely to Issue Native Exchange Token Through IEO to Recover Frozen Funds

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Source: CoinSpeaker

Unconfirmed: Bitfinex Plans to Raise $1 Billion in USDT via ‘Initial Exchange Offering’

Yes, you heard it right, Bitfinex cryptocurrency exchange plans to raise $1 billion in Tether (USDT) via initial exchange offering (IEO). It was first reported by a member of the Twitter community ‘ Dovey Wan’.
Bitfinex To Raise Billion via Initial Exchange Offering (IEO)
However, it comes as a rumor, later Dovey Wan’ states that one of the Bitfinex’s shareholder agreed to it. This is quite a surprising update due to the ongoing controversy around Bitfinex and Tether. Nevertheless, the Tether is the Bitfinex’s own token which bothers many crypto enthusiasts and traders.
Source: Twitter
Until the press time, Bitfnex didn’t confirm the report officially. However, if it comes as a true statement and officially confirmed, then the community’s voice on whether or not the platform is actually liquid is worth considering.
Nevertheless, in the case of IEO, participants have to buy exchange’s native token and help Bitfinex raise billions in so-called stablecoin, Tether. Bearing this in mind, the community on Twitter is assuming that the exchange is facing liquidity issues. While many people call USDT as a stablecoin, with the recent frozen funds of $750 million from Tether’s reserve fund, USDT is missing the respective $750 million funds to be a stablecoin – which other side supposed to have to be a stablecoin.
Also read: Bitcoin Surcharge on Bitfinex and USDT Pairs Building FUD in Traders?
With having 18.5K followers, Dovey Wan often shares breaking stories and the current market scenarios. In her continuous tweets, she also adds that allocation of Bitfinex’s IEO already begins as such folks are selling it in few channels, she said.
I just don’t see how this can be sustainable, it won’t make Tether fully-backed again unless they distribute profit/new fund raised back to Tether reserve. BFX has already securitized + tokenized its future cash flow for their last hack, this is another layer of leverage on top
Nevertheless to note that the exchange has first hit with the Bitlicense rejection by New York Department of Financial Services’ (NYDFS) and the New York State’s Attorney General accused Bitfinex of using $850 million worth USDT or Tether’s reserves to cover up the loss of funds. However, Bitfinex’ shareholder, Zhao Dong’ says the story isn’t over yet.
In fact, Dong has also contributed to the matter of Bitfinex’s rumored IEO. In one of his post (written in Chinese) which later translated to English and shared by a Twitter user @Zirui_z, – in his post, he says
‘there’s a high possibility that Bitfinex is going to do an IEO’.
What’s your take on Bitfinex’s plan of raising billion via IEO in USDT. (If it gets confirmed by exchange).? Let us know in the comment below
The post Unconfirmed: Bitfinex Plans to Raise $1 Billion in USDT via ‘Initial Exchange Offering’ appeared first on Coingape.
Source: CoinGape