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Cryptocurrency spotlight refuses to leave Bitfinex and Tether

Chayanika Deka

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Cryptocurrency spotlight refuses to leave Bitfinex and Tether
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Bitfinex, NYAG’s favorite cryptocurrency exchange, recently announced that the debts repayment to Tether Unlimited has begun, with the majority of the community breathing a sigh of relief. Notably, the exchange reimbursed $100 million out of around $700 million before the agreed timeline, mainly because of its financial position for the Q2 of 2019. 

Nevertheless, the reason could also be contributed to the growing concern surrounding the stablecoin in the market ever since a document revealed that the coin was only 70 percent backed. To add, several members of the community also raised red flags over the coin’s connection to Bitcoin’s price rise, resulting in the assumption of market manipulation. This, however, was explained by Ben Muster, a journalist at Decrypt Media, who stated in an article that the reason for the enormous amount of USDT movement was in fact because of the demand in the market. 

Another news associated with Tether, albeit a slightly positive one for stablecoin is its swap from Bitcoin to Ethereum. This increasing amount of swap managed to grab the attention of even well-known influencer, Anthony Pompliano and the CTO of Bitfinex and Tether, Paolo Ardoino. 

Ben DiFrancesco, the Founder of Scopelift, asked Pomp on Twitter whether Bitcoin would be the resting place of assets, taking into consideration the shift of the most successful asset built on Bitcoin to Ethereum. To this, the co-founder of Morgan Creek Digital replied stating that it indeed would be the go-to blockchain as the most secure chain would be the winner. He said,

“Yes. Most secure chain will be the beneficiary of winner take most market opportunity.”

Meanwhile, the CTO of Bitfinex, explicitly stated that they have doubled their efforts to support Omni, Liquid and Lightning Network via RGB. He said, 

“I would like to point out that while I stated facts (users are moving to ETH) we are increasing our efforts to support Omni, @Blockstream  ‘s Liquid and LN/RGB to make sure to give the ability to Tether users to use a transport layer secured by Bitcoin network.”

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Chayanika is a full-time cryptocurrency journalist at AMBCrypto. A graduate in Political Science and Journalism, her writing is centered around regulation and policy-making regarding the cryptocurrency sector.

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