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Sideshift App Demonstrates a Trade Between Lightning Network BTC and Tether

January 12, 2019 |

Sideshift App Demonstrates a Trade Between Lightning Network BTC and Tether

Back in October news.Bitcoin.com reported on the influx of development tied to Drivechain, a project initiated by software developer Paul Sztorc. At the time we also covered the project’s extension applications coded by the programmer Andreas Brekken. One of those applications Brekken conceived allowed any Drivenet coins to be swapped between any blockchain protocol. On Friday, an application called Sideshift.ai was used to demonstrate a bitcoin core (BTC) to tether (USDT) swap using the Lightning Network.

Also Read: A Look at Some of the ‘Next Generation’ Bitcoin Mining Rigs Available Today

Introducing Sideshift

Sideshift App Demonstrates a Trade Between Lightning Network BTC and Tether Jan. 11 saw a demonstration of Sideshift.ai, an application that allows users to swap cryptocurrencies between chains. Sideshift was first revealed last year by Andrea Brekken among the suite of applications he created for the Drivechain project. Brekken is the chief executive officer of the review site Shitcoin.com and the infamous coder who once held the most BTC ($ 220,000) on the Lightning Network last year. The Sideshift platform allows people to convert coins for a small fee with a processing time of under five seconds.

Sideshift App Demonstrates a Trade Between Lightning Network BTC and Tether
Developer Andreas Brekken (right) designed the Sideshift application and made headlines for having one of the largest nodes on the Lightning Network back in July. Brekken is also known for his review website Shitcoin.com.

In the demonstration, Sideshift, processes a swap between BTC held on the Lightning Network and tether (USDT) using the Eclair mobile wallet for Android. At the moment the Sideshift application is in its very early stages, but users can experiment with the “test pilot stage.” However, in order to access the testing stage, a special code is required and Sideshift’s Twitter handle will only give codes to eager testers who have a Bitcointalk.org account that’s more than two years old.

Sideshift App Demonstrates a Trade Between Lightning Network BTC and Tether
The Sideshift.ai platform.

Furthermore, the Sideshift application is not accessible to residents living in North Korea or the United States. Of course, the U.S. ban is likely due to the overreaching financial laws in the country. U.S. law enforcement agencies and regulators could potentially prosecute individuals and organizations by threatening them with criminal charges for performing financial transactions.

Sideshift App Demonstrates a Trade Between Lightning Network BTC and Tether
Sideshift forbids access to two countries.

Cross-Chain Swapping Platforms Are Still Very Experimental

In order to view Sideshift, we changed our proxy to an EU-based server and got a glimpse of the platform that operates similarly to Shapeshift, but without involving know-your-customer (KYC) guidelines. Looking at the past transactions recorded on Sideshift’s main page, testers have been swapping very small fractions of cryptocurrencies.

Sideshift App Demonstrates a Trade Between Lightning Network BTC and Tether
Sideshift’s rate table shows the prices of all the cryptocurrencies paired against each other.

The platform shows all the currencies that can be swapped, which include BCH, BTC, LTC, ZEC, USDT, XMR, DASH, ETC, ETH, DAI, and SPANK. Sideshift further lists the conversion rates for each digital asset paired against the other listed coins. At the time of publication, the last shift was seven hours ago using the Lightning Network with 0.0003 BTC for 0.008601 ETH. There’s also a swap between 0.0149022 BTC and 0.9805 ZEC that doesn’t involve the Lightning Network.

Sideshift App Demonstrates a Trade Between Lightning Network BTC and Tether
In order to use Sideshift an access code for the test pilot period is required.

Over the last few months, after Shapeshift adopted KYC, cryptocurrency enthusiasts have been in search for platforms that offer anonymous crypto swaps. Since then a bunch of digital asset ‘shifting’ applications have popped out of the woodwork. Cross-chain atomic swaps have also been a trending topic among digital currency proponents as many veterans have little trust in third party exchanges. Even though Sideshift does provide quick cross-chain trades, testers should remember the platform is still in its infancy. So those who do obtain the access code from Sideshift administrator should probably only use small fractions of cryptocurrency.  

What do you think about the Sideshift.ai application? Let us know your thoughts about this subject in the comments section below.

Disclaimer: Readers should do their own due diligence before taking any actions related to the mentioned company or any of its affiliates or services. Bitcoin.com and the author are not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. This editorial is for informational purposes only.


Image credits: Shutterstock, Twitter, and Sideshift.ai.


Need to calculate your bitcoin holdings? Check our tools section. 

The post Sideshift App Demonstrates a Trade Between Lightning Network BTC and Tether appeared first on Bitcoin News.

Bitcoin News

The Daily: Bitfinex Launches Tether Margin Trading, Zebpay Resumes BCH Transactions

December 23, 2018 |

The Daily: Bitfinex Launches Tether Margin Trading, Zebpay Resumes BCH Transactions

In today’s edition of The Daily, we feature a number of recent developments from influential cryptocurrency exchanges including Bitfinex, Coinbase and Zebpay. We also cover the latest investment in the field by Paypal co-founder, Peter Thiel.

Also Read: Poll Shows 13% of Russians Use Cryptocurrency for Online Purchases

Bitfinex Launches Tether Margin Trading

The Daily: Bitfinex Launches Tether Margin Trading, Zebpay Resumes BCH TransactionsBitfinex, the exchange linked to the controversial Tether stablecoin, has introduced trading on margin for the USDT/USD pair. As strange as it may sound, offering leveraged trading on an instrument against the fiat base it is supposed to be matching can have some uses. And above all, it signals that the company is confidant about being able to maintain the 1:1 backing, even under new pressure from leveraged traders.

Bitfinex claims that adding margin trading on USDT/USD “will not only allow for more efficient price discovery, but in an important move for risk management, unlock the ability to hedge the exposure taken on stablecoins. Along with a dedicated lending market, USDT will be available as collateral for margin positions.”

The exchange further claims that while stablecoin margin trading is limited to USDT/USD for now, Bitfinex has plans to introduce margin trading for other stablecoin pairings, as part of its “commitment to providing a coin agnostic platform, when sufficient liquidity is reached.”

Coinbase Expands to Six European Markets

Coinbase has announced the rollout of its basic service to six additional European regions, encompassing about three and a half million people. This means that customers in Andorra, Gibraltar, Guernsey, Iceland, Isle of Man, and Lithuania will be able to use the website and mobile apps to buy and sell cryptocurrencies on the platform. And the company also hopes to make Coinbase Pro and Prime available in these regions over time.

“Cryptocurrencies are global by their very nature and we believe that they should exist without borders. To realize our mission means making crypto easily available to everyone, irrespective of their geographical location,” the team stated. “Next year we will continue expanding rapidly into new regions and adding assets to the Coinbase platform to meet customer demand.”

Zebpay Resumes Bitcoin Cash Transactions

The Daily: Bitfinex Launches Tether Margin Trading, Zebpay Resumes BCH TransactionsZebpay, formerly one of India’s largest exchanges which recently launched in Europe, has notified clients on Friday that it is now reenabling BCH deposits and withdrawals paused since the recent hard fork. The exchange will also restart BCH trading for supported fiat and crypto pairs in supported countries over a couple of days.

“We have closely monitored the BCH network, it is now stable and safe to resume BCH wallet transactions. You can perform Bitcoin Cash sends and receives from your Zebpay wallet,” the team explained. “We are providing support for the Bitcoin ABC network which is identified on the Zebpay platform as Bitcoin Cash with ticker BCH. ABC chain is leading in blocks, hash rate, total chain difficulty. In your Zebpay wallet, BCHABC will be called BCH, balances will be credited in 1:1 from fork time.”

Peter Thiel Invests in New Crypto Platform

San Francisco-based crypto investment platform Layer1 has announced the closing of $ 2.1 million in seed funding. The round was backed by notable investors such as Peter Thiel, Digital Currency Group, Jeffrey Tarrant, and others.

The company’s stated mode of operation is to take a long-term position in crypto assets it believes represent promising technologies with network effects, then deploy capital and resources in order to improve their fundamental value and support market adoption. It is said to have a heavy focus on programmable money and store-of-value applications.

Layer1 is led by co-founder, Alexander Liegl, and the team comes with experience from both big tech companies, such as Google and Facebook, and major investment funds such as Protégé Partners and Stanford Management.

“We believe that the crypto investment company of the future will look radically different to status quo, with a clear focus on an engineering-first and pro-activist investment approach,” said Liegl. “Cryptocurrencies, as open-source protocols, offer the unprecedented opportunity for companies like Layer1 to meaningfully add value. This is fundamentally different from the possibilities available in traditional asset classes.”

What do you think about today’s news tidbits? Share your thoughts in the comments section below.


Images courtesy of Shutterstock.


Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com.

The post The Daily: Bitfinex Launches Tether Margin Trading, Zebpay Resumes BCH Transactions appeared first on Bitcoin News.

Bitcoin News

Tether Reopens Fiat-USDT Redemption Platform

November 28, 2018 |

Tether is back in business. Its stablecoin platform, which has lain dormant since last year, is to reopen for fiat deposits and tether (USDT) redemption. The move, described by Tether as a “new vision,” ought to return its stablecoin to the parameters it was originally designed to meet. With a minimum fiat deposit of $ 100,000, however, Tether’s service will be off-limits to retail investors.

Also read: Binance Moves Away From Tether

Tether Relaunches Direct Service

Tether Reopens Fiat-USDT Redemption PlatformPredictions of tether’s demise may have been exaggerated. Within 24 hours of Binance removing tether’s position as its reference BTC-USD pair in favor of a weighting of stablecoins, Tether has relaunched. In a declaration that it is open for business — namely the business of accepting fiat currency deposits and redeeming them for USDT — Tether has reactivated its platform. This will enable new customers to complete verification and existing ones to purchase tethers directly.

In an announcement on Nov. 27, Tether described the news as “an important step in Tether’s journey” and a return to “its original vision of having a wallet for creating and redeeming directly on its own platform without having to rely on a third party.” Customers will be able to exchange tether for fiat with immediate effect, with the reverse option to be added soon.

New Fee Structure and Minimum Deposit Set

Tether’s new banking arrangement with Deltec has been pivotal in enabling it to resurrect its native platform. There is a catch though: Customers will need to deposit or redeem a minimum of $ 100,000. As a result, the service will be of little interest to retail investors. Instead, Tether has spoken of the “professional investor audience” that will have the means to deposit hundreds of thousands or even millions of dollars at a time. Each fiat deposit will incur a 0.1 percent fee, while fiat withdrawals will be charged at 1 percent up until $ 10 million and 3 percent thereafter.

Tether Reopens Fiat-USDT Redemption PlatformTo coincide with the news of the revitalized Tether platform, Bitfinex and Ethfinex have announced the introduction of tether-fiat trading pairs. USDT-USD and EURT-EUR will be available on both exchanges in a move which Bitfinex has glibly described as “continuing [its] heritage of providing a neutral, coin-agnostic platform.” Since the news was announced, the so-called tether premium has dropped to just over 3 percent, meaning that BTC is currently trading around $ 120 higher than average on USDT-only exchanges.

Given the reluctance of institutional investors to onboard using USDT, and the high minimum deposit threshold, it remains to be seen how much demand there is for Tether’s fully functional platform.

What are your thoughts on Tether’s relaunched platform? Let us know in the comments section below.


Images courtesy of Shutterstock.


Need to calculate your bitcoin holdings? Check our tools section.

The post Tether Reopens Fiat-USDT Redemption Platform appeared first on Bitcoin News.

Bitcoin News

The Daily: Binance Moves Away From Tether, Nasdaq Moves Closer to BTC Futures

November 27, 2018 |

The Daily: Binance Moves Away From Tether, Nasdaq Moves Closer to BTC Futures

In this edition of The Daily, we detail the reduced role that tether is playing at the world’s leading cryptocurrency exchange and the progress being made in adding bitcoin futures to the world’s second largest stock exchange. We also round up the latest progress being made in the security token space.

Also read: Petition to Free Ross Ulbricht Gathers 100,000 Signatures

Binance Tiptoes Away From Tether

The Daily: Binance Moves Away From Tether, Nasdaq Moves Closer to BTC FuturesLike many exchanges, Binance has sought to reduce its exposure to tether (USDT) in recent months by introducing a range of alternative stablecoins. Binance has now moved to further distance itself from tether by removing it as the reference BTC/USD pair on the platform. In its place will come “USDⓈ.” This is not a new stablecoin, but rather the name Binance has assigned to the combined stablecoins it will use to derive its BTC/USD price.

“This is to support more trading pairs with different stablecoins offered as a base pair,” explained the cryptocurrency exchange, the world’s largest by trading volume. The website untether.space, which records the so-called “tether risk premium,” notes that on USDT exchanges, BTC is currently trading at a premium of 3.67 percent.

Nasdaq Moving Ahead With Bitcoin Futures

It’s being reported that Nasdaq is pressing ahead with its plans to list bitcoin futures, with BTC’s current downtrend doing little to diminish its desire to add the trading option. The U.S. Commodity Futures Trading Commission is currently finalizing the details ahead of a scheduled launch on the world’s second-largest stock exchange in Q1 of 2019. The Nasdaq will take its BTC spot price from a selection of cryptocurrency exchanges, and is seeking to differentiate its futures contracts from those offered by CME and Cboe.

The Daily: Binance Moves Away From Tether, Nasdaq Moves Closer to BTC Futures

Security Token Infrastructure Is Growing

2019 is shaping up to be the year when much of the building work performed in 2018 bears fruit. In addition to Nasdaq’s futures and the widely anticipated approval of the first bitcoin ETF, security token offerings (STOs) are predicted to take off. A number of recent developments in the security token space are helping to lay the groundwork for major growth within the next 12 to 18 months. Security token platform Securitize has just completed a Series A raise of $ 12.75 million from the likes of Blockchain Capital, Coinbase Ventures and Ripple.

The Daily: Binance Moves Away From Tether, Nasdaq Moves Closer to BTC Futures
Security tokens made up 6.54 percent of projects in Q3.

Meanwhile, ICOrating.com has inked a partnership with Chinese security token platform Proof Global to assist with STOs. Proof’s forthcoming security token issuance platform will use ICOrating’s research and analytics related to security tokens, market data and research. Rating reports on startups raising funds by STOs will be available to investors, enabling them to make decisions based on data and analysis. According to research by ICOrating, security tokens accounted for just 6.5 percent of ICOs in Q3 of this year, but that figure is projected to increase significantly in the next quarter.

What are your thoughts on today’s news tidbits as featured in The Daily? Let us know in the comments section below.


Images courtesy of Shutterstock.


Need to calculate your bitcoin holdings? Check our tools section.

The post The Daily: Binance Moves Away From Tether, Nasdaq Moves Closer to BTC Futures appeared first on Bitcoin News.

Bitcoin News

Tether Confirms New Bank and Claims to Have $1.8 Billion in Cash

November 2, 2018 |

Tether Confirms New Bank and Claims to Have $  1.8 Billion in Cash

Tether Ltd. has confirmed the identity of its new bank. The company behind the eponymous tether stablecoin (USDT) has historically been reluctant to disclose its banking arrangements, for fear they might be jeopardized. It has now issued a statement, however, confirming that it is banking with Deltec Bank & Trust Ltd.

Also read: Digital Asset ATM Provider Coinsource Acquires Bitlicense

Tether Highlights Due Diligence by Deltec

Tether Confirms New Bank and Claims to Have $  1.8 Billion in CashThe identity of Tether’s new bank, Bahamas-based Deltec, has been public knowledge for a number of weeks. On Nov. 1, Tether released a statement to confirm its banking relationship with the 72-year-old financial institution. The statement emphasized Deltec and Tether’s commitment to compliance and transparency, in a bid to stave off the sort of criticism that has been leveled against the company.

“The acceptance of Tether Ltd. as a client of Deltec came after their due diligence review,” read the announcement. “This included, notably, an analysis of our compliance processes, policies and procedures; a full background check of the shareholders, ultimate beneficiaries and officers of our company; and assessments of our ability to maintain the USD-peg at any moment and our treasury management policies.”

Tether continued:

This process of due diligence was conducted over a period of several months and garnered positive results, which led to the opening of our bank account with this institution. Deltec reviews our company on an ongoing basis.

One word that was conspicuously absent from Tether’s statement was “audit,” something that a tranche of the cryptocurrency community has been requesting for months. Such an undertaking, should it ever occur, would need to be handled by a specialist third party and is not a duty that Deltec could perform.

Tether Insists Cash Deposits Will Cover All USDT

In addition to confirming its banking relationship, Tether provided a copy of a letter from Deltec dated Nov. 1 stating that its cash on hand stands at $ 1,831,322,828. If accurate, these holdings would cover the $ 1.76 billion of USDT in circulation. While some commenters poked fun at the rudimentary nature of the signature on the document, the majority seemed relieved to see prima-facie evidence to suggest that all USDT in circulation are backed by a U.S. dollar.

Tether Confirms New Bank and Claims to Have $  1.8 Billion in Cash

What are your thoughts on Tether’s statement? Let us know in the comments section below.


Images courtesy of Shutterstock.


Need to calculate your bitcoin holdings? Check our tools section.

The post Tether Confirms New Bank and Claims to Have $ 1.8 Billion in Cash appeared first on Bitcoin News.

Bitcoin News

Tether Treasury Holds Nearly 30% of Total USDT Supply

October 25, 2018 |

Tether Treasury Holds Nearly 30% of Total USDT Supply

UPDATE (25 October 13:25 EDT): This article has been updated to include Tether’s recent redemption statements.

The “Tether Treasury’s” USDT wallet has rapidly risen up the ranks to become the top holder of the stablecoin, suggesting that some market participants may have managed to successfully withdraw their holdings from circulation. The removal of roughly 28.5 percent of the total number of Tether in circulation has coincided with a significant depletion in the amount of USDT held in two wallets separately owned by Binance and Huobi.

Also Read: Bitcoin Cash Organizations Start Preparing for the November Hard Fork

Largest Holdings Shift to Tether Treasury

Tether Treasury Holds Nearly 30% of Total USDT SupplyThe Tether Treasury wallet has grown from being the fifth-largest store of the currency as of Oct. 7, when it held nearly 186.7 million USDT, to becoming the largest USDT wallet at present, with almost 916.7 million USDT. The growth of the wallet’s contents appears to have coincided with a 26.6 percent reduction in the contents of the largest of two wallets belonging to Binance. That wallet held the largest Tether balance of 808.7 million USDT as of Oct. 17, but is now ranked second with 593.6 million USDT.

A wallet once identified as the largest Tether wallet, owned by Huobi, has also seen a significant reduction in its holdings. On Oct. 7, it was the second-largest store of the currency at 249.3 million USDT. However, as of this writing, the wallet holds just 29.18 million USDT, putting it at 12th place.

Another Tether wallet owned by Huobi, currently the exchange’s largest, has not changed in value, with 209.5 million USDT. It has crept up the rankings of the biggest Tether wallets from fourth place to third place at present. Additionally, Tether’s official Twitter account explained the company had destroyed 500 million tethers on Oct. 24. The Twitter announcement leads to a blog post, which details that over the past week, Tether has “redeemed a significant amount of USDT from the circulating supply of tokens.” The company states there are approximately 466 million USDT remaining in the Tether treasury wallet.

USDT/USD Pairing Appears to
Stabilize Following Capitulation

Tether Treasury Holds Nearly 30% of Total USDT SupplyKraken’s Tether wallet, which was the seventh-largest on the list with almost 47.8 million USDT as of Oct. 19, now ranks ninth with 43.9 million USDT. Just 12 days prior, on Oct. 7, the wallet was the 22nd-largest holding on the list, with 21.6 million USDT.

Recent sizable inflows to the Kraken wallet had sparked theories that a major Tether holder was contemplating a sudden exodus from the USDT markets, with Kraken hosting the strongest USDT/USD pairing by volume. While the wallet has since been depleted by nearly 4 million USDT, the price of Tether has remained relatively stable, ranging between $ 0.965 and $ 0.98 over the past week. Despite this, there were $ 11.25 million worth of unfilled cumulative USDT sell orders priced below $ 1.00 as of this writing, indicating that many market participants are willing to accept losses to liquidate their holdings.

Tether Treasury Holds Nearly 30% of Total USDT Supply

What is your response to the shifting holdings of the largest Tether wallets? Share your thoughts in the comments section below!


Images courtesy of Shutterstock


At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.

The post Tether Treasury Holds Nearly 30% of Total USDT Supply appeared first on Bitcoin News.

Bitcoin News

The Daily: Tether Regains Ground, Coinbase Does Dublin

October 16, 2018 |

The Daily: Tether Regains Ground, Coinbase Does Dublin

Today’s edition of The Daily starts where Monday’s left off: by looking at the latest on Tether, whose stablecoin anchors so much of the cryptoconomy. In related news, we detail Bitfinex’s banking situation and reveal why Coinbase has chosen Dublin to be its European headquarters.

Also read: Tether Sheds Its Peg

Tether Regains Ground

The chart below isn’t your average Binance altcoin experiencing some characteristic volatility. It is in fact that of two supposed stablecoins trading against one another: tether (USDT) and trueusd (TUSD). Following yesterday’s shenanigans, which saw tether slip to around $ 0.88 on some exchanges, the token has regained a little ground and now sits at $ 0.95, according to Blockmodo.

The Daily: Tether Regains Ground, Coinbase Does Dublin

The data remains skewed, however, by the fact that tether is valued at a flat $ 1 on Bitfinex, where it is the only U.S. dollar trading pair. Sites such as Coinmarketcap, which record tether’s seemingly perfect dollar parity on Bitfinex, create the impression that USDT’s global average is higher than it actually is. At the time of publication, 1 TUSD was trading for 1.06 USDT on Binance. While Binance offers a range of stablecoins, it remains heavily invested in tether, with holdings of ~$ 850 million, meaning it owns more USDT than even Tether itself. On Monday, Tether came out fighting, with chief compliance officer Leonardo Real insisting:

Although markets have shown temporary fluctuations in price, all USDT in circulation are sufficiently backed by U.S. dollars (USD) and that assets have always exceeded liabilities.

Huobi, the world’s fourth largest exchange, has now followed the lead of Okex and introduced a handful of new stablecoins to alleviate traders’ concerns. TUSD, USDC, GUSD and PAX will all be listed on Oct. 19. The market capitalization of Circle’s USDC has grown by 85% in the past week, surpassing $ 25M, with more than 40 platforms now supporting the stablecoin. Bitfinex, meanwhile, has confirmed that its fiat deposits are on course to be restored, a move that ought to restore a measure of confidence in the exchange:

Coinbase Seeks Dubliners to Join Irish Outpost

“Coinbase is expanding its European presence by opening a new office in Dublin,” revealed the serpentine exchange, whose tentacles span multiple continents and crypto sectors. “We look forward to tapping into the city’s diverse talent pool and contributing to its burgeoning crypto economy,” they added. What Coinbase didn’t mention is that Ireland’s famously low corporate taxes will have been pivotal in sealing the deal. The California-based firm will be joining the 700 other U.S. companies to date that have made Dublin the seat of their European operations, including Apple.

The Daily: Tether Regains Ground, Coinbase Does Dublin

“I am delighted that Coinbase is opening an office in Dublin,” said Ireland’s Minister for Financial Services and Insurance Michael D’Arcy. “This decision highlights the competitive offering and attractiveness of Ireland for financial services.” Coinbase has now embarked on a recruitment drive ahead of the opening of its Dublin office.

Eraswap and X Cloud Usher in
Censorship-Resistant Platforms

The Daily: Tether Regains Ground, Coinbase Does Dublin
Cloud X

We’ve written a lot lately about censorship and the tools being developed to thwart crackdowns by the dominant web platforms such as Facebook and Twitter. Decentralized applications have the potential to ease some of the pain points that are afflicting web users, including account shutdowns and permabans. Eraswap, a platform that aims to refine social media via a social economy and marketplace dapp tailored to the user’s interests, can be added to that list. Then there’s Internxt, which has just released the beta of its X Cloud decentralized storage with 10GB provided for free.

Distributed storage is big business right now, with the likes of Akash also releasing its own cloud storage solution designed to thwart internet censorship. Having inked partnerships with Blackberry, Civic and Y Combinator, Internxt has already drummed up a fair bit of interest in its decentralized storage solution.

What are your thoughts on today’s news tidbits as featured in The Daily? Let us know in the comments section below.


Images courtesy of Shutterstock.


Need to calculate your bitcoin holdings? Check our tools section.

The post The Daily: Tether Regains Ground, Coinbase Does Dublin appeared first on Bitcoin News.

Bitcoin News

The Fall of Tether and What It Means for the Cryptocurrency Markets

October 15, 2018 |

The Fall of Tether and What It Means for the Cryptocurrency Markets

The demise of Tether has been a car crash in slow motion. An unswervable event that has played out over the course of months, it has reached a crescendo in the past 24 hours, with tether slipping significantly from its dollar peg. It is possible, perhaps even probable, that it will regain parity with the U.S. dollar. But by then, the damage may have already been done.

Also read: The Daily: Tether Sheds Its Peg

The Beginning of the End
or the Start of a New Dawn?

The Fall of Tether and What It Means for the Cryptocurrency MarketsA cryptocurrency losing 10 percent of its value in a week would not normally be news. But when that cryptocurrency is a supposedly “stable” coin — and one whose very stability is relied on by a huge tranche of the market — its slippage is big news. One small slip for tether can result in a giant leap for other cryptocurrencies; it is no coincidence that BTC’s climb to $ 7,500 in the past 12 hours, as well as its subsequent decline, was triggered by tether’s instability.

A precis of the events that led to this state of affairs goes as follows:

  • Tether’s trading volume has built up over time, leading to it becoming the second most traded crypto after BTC (USDT 24-hour volume currently stands at $ 4.8B)
  • Bitfinex’s failure to publish an audit has led to fears that tether could be backed by nothing, or at least not enough to cover the 2.5 billion tethers in circulation
  • Bitfinex’s struggle to obtain a banking partner has exacerbated the problem
  • Rumors of Tether/Bitfinex being subpoenaed and potentially shut down have swirled for months
  • Last week Bitfinex lost its latest bank, HSBC, forcing it to suspend fiat deposits
  • A steady stream of criticism has poisoned the Tether brand, leaving confidence in the stablecoin at an all-time low
  • Wary of being trapped in an asset that’s a prime target for FUD (both real and false), traders have exchanged USDT for BTC or other stablecoins
  • This has caused the price of tether to slip and other stablecoins to trade at a premium

Which leads us to where we are today, which is a cryptocurrency market that doesn’t know what’s going on. Tether bears are loving the collapse of USDT, other stablecoins are relishing their time to shine, memers are meming, arbers arbing, and BTC is leading the market on a merry dance from the low $ 6000s to the high sevens.

 

The Fall of Tether and What It Means for the Cryptocurrency Markets
Tether’s drop-off has occurred sharply, as can be seen when viewed over a three-month window.

On cryptocurrency forums, traders shared apocalyptic predictions of what tether’s demise might do for the ecosystem, and whether it would presage Mt Gox 2.0. Hyperbole reigned supreme. “It took almost four years for people to regain some kind of confidence after Gox,” wrote one. “This is far worse than Gox, and will hurt crypto immensely in the eyes of even the bagholders and basic bitches.” They continued:

Without dumb money entering the system, you can’t offload your shitcoins, thus you’ll all be sitting on bags, and the market will become inert. It’s gonna be a bad, bad turn, regardless of what happens.

Exchanges Rush to Introduce New Stablecoins

The Fall of Tether and What It Means for the Cryptocurrency MarketsWith tether’s card marked, so to speak, cryptocurrency exchanges have sought to expedite the introduction of alternative stablecoins. Today (Oct. 16), Okex went stablecoin crazy, adding TUSD, USDC, GUDC, and PAX. On Binance, meanwhile, TUSD is trading at $ 1.12 against tether, having reached a high of $ 1.24 at one stage. At the time of publication, tether was averaging $ 0.93 across exchanges, but with some marked disparities between platforms. On Binance and Bittrex, for example, where there is a greater choice of stablecoins, tether has fared worse. On Kraken and Bitfinex, on the other hand, traders have little option but to trust in tether.

Should Bitfinex succeed in restoring its banking arrangements this week, as the exchange has promised, it is conceivable that the move could restore faith in tether, which may regain the $ 1 peg it has adhered to so faithfully until this week. Whether tether is backed or unbacked, audited or unaudited, its status — from a technical perspective — has not changed in the past seven days. Psychologically, though, everything has changed. Like a cheating spouse, a stablecoin that’s been caught out once will always be suspected of straying again. While the markets will weather this period of uncertainty, for tether there may be no way back. Where tether and Bitfinex go from here is anyone’s guess.

Do you think this is the end for tether, or will the stablecoin recover? Let us know in the comments section below.


Images courtesy of Shutterstock, 4chan and Twitter.


Need to calculate your bitcoin holdings? Check our tools section.

The post The Fall of Tether and What It Means for the Cryptocurrency Markets appeared first on Bitcoin News.

Bitcoin News

The Daily: Tether Sheds Its Peg

October 15, 2018 |

The Daily: Tether Sheds Its Peg

What kind of a world are we living in when bitcoin and tether, two of the stablest currencies in the cryptosphere, break out at the same time? Bitcoin is headed north while tether has taken a tumble in events that are closely linked. Of course, there’s other news in this edition of The Daily, like an NBA star selling his sneakers for bitcoin, but there’s only one story that’s got everyone talking: the crazy, topsy-turvy tale of tether, the stablecoin that couldn’t keep its peg.

Also read: Report: Barclays Drops Plan for Cryptocurrency Trading Desk

Tether Slides, Bitcoin Glides

After enduring months of scarcely moving — BTC because it was trapped within a tight range and USDT because that’s its job — both coins have made big moves over the past 12 hours. BTC began to soar around 2 a.m. EST, hitting $ 7,500 per coin before settling around the $ 6,900 mark. Tether, meanwhile, began to slide on Bitfinex, flash-crashing to as low as $ 0.88 after struggling to maintain dollar parity all week.

The Daily: Tether Sheds Its Peg
USDT dropped to under $ 0.90 against TUSD on Kraken.

“Watching tether die,” tweeted constant critic @Bitfinexed, who had likely been waiting for this moment all his life. In the midst of all the drama, Bitfinex issued a clarification, stating that fiat deposits should be re-enabled by Tuesday, Oct. 16. Meanwhile, the Kucoin exchange temporarily stopped USDT deposits and withdrawals due to “wallet system maintenance.” Needless to say, the movements of BTC and USDT are closely correlated, with traders seeking to escape the uncertainty of tether in favor of a safer haven. We’ll have more on this story, and what it means for Bitfinex, Tether and the cryptoconomy as a whole, later today.

 Muun Launches Bitcoin Core Wallet

A new everyday wallet for storing and sending bitcoin core has been released in beta. Muun is now available on Google Play, with an iOS version to follow soon. “Muun is designed for people who use at least a small portion of their bitcoins. Some use cases are introducing new people to cryptocurrencies, sending money to friends, paying for online services, or getting paid for a remote job,” its developers explain.

The Daily: Tether Sheds Its Peg

In action, the wallet is easy to use, but is short on the sort of features that more advanced users might desire. There’s no ability to paste in wallet addresses, for instance — it only works with a QR code — and users are obliged to register an email address upon signup. For sending and receiving BTC to friends and family, however, Muun looks just the ticket. That said, for a more feature-rich wallet that’s equally user-friendly, and accepts BTC and BCH, the Bitcoin.com Wallet has got you covered.

Spencer Dinwiddie Sells Sneakers for Bitcoin

The Daily: Tether Sheds Its PegBrooklyn Nets star Spencer Dinwiddie is big on three things: height, basketball and cryptocurrency. The first two go hand in hand for the 6-foot-5-inch NBA point guard — or hand on rim, rather. Since buying his first bitcoin at $ 3,000 last year, Dinwiddie’s been hooked. This season his signature K8IROS sneakers, developed in cooperation with a company called Project Dream, will be buyable in bitcoin.

Dinwiddie also had some interesting comments to make about cryptocurrency, and bitcoin adoption in general.

“Blockchain in essence is transparency. So if as humans we’re looking, searching for transparency, we’re gonna get there eventually,” he said. “Now, what does that mean for the price? I don’t know. Is it a $ 10K bitcoin, $ 5K, $ 500K? Nobody knows; I think everyone’s guesstimating. But the tech base in general, if we as a people — all seven-and-a-half or eight billion of us — say we want truth and transparency, it’s the next step.”

What are your thoughts on today’s news tidbits as featured in The Daily? Let us know in the comments section below.


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Exchanges Roundup: Tether, Bitfinex Drop Noble Bank, Bitmex Hires COO

October 3, 2018 |

Exchanges Roundup: Tether/Bitfinex Drops Noble Bank, Bitmex Hires COO

In recent news pertaining to cryptocurrency exchanges, Noble Bank is looking to sell after reportedly losing Bitfinex and Tether as clients, Bitmex has announced the former compliance head of Hong Kong Exchanges and Clearing Limited as its new chief operating officer, and Huobi’s director of research into blockchain applications has discussed the company’s goals for its upcoming transfer of operations onto its public ledger.

Also Read: Chrome Extensions Will Soon Protect Against Miners and Hackers

Noble Bank to Sell Amid Loss of Clients Tether and Bitfinex

Exchanges Roundup: Tether/Bitfinex Drops Noble Bank, Bitmex Hires COONoble Bank International, a Puerto Rican financial services firm known for servicing Tether and Bitfinex, is reportedly looking to sell.

Informed by “a person with direct knowledge of the situation,” Bloomberg reports that “The bank has lost many of its customers, including Bitfinex and Tether, and is no longer profitable […] The company could sell itself for a price between $ 5 million and $ 10 million, based largely on the value of its Puerto Rican license to operate as an international financial entity.”

Bitmex Hires Former Hong Kong Exchanges and Clearing Limited Compliance Head

Bitmex has hired Angelina Kwan as the exchange’s new chief operating officer. Mrs. Kwan is the former managing director and head of regulatory compliance for Hong Kong Exchanges and Clearing Limited, and has also spent eight years working for the Securities and Futures Commission of Hong Kong.

Exchanges Roundup: Tether/Bitfinex Drops Noble Bank, Bitmex Hires COOMrs. Kwan stated: “In addition to being a true market leader among trading platforms, Bitmex shares my value of gender inclusion, particularly in STEM fields. Cryptocurrency markets present an exciting new opportunity for women to get involved in the intersection of finance and technology, two fields in which they are chronically under-represented. Bitmex has made its commitment to meritocracy clear, and is sending the message that women with deep backgrounds in finance and business can execute at the highest level within cryptocurrency companies.”

Arthur Hayes, the chief executive officer and co-founder of Bitmex welcomed Mrs. Kwan to the company, stating: “I believe Angelina’s decision to join us is a signal that the global markets are shifting focus to the rapidly-expanding domain of crypto-coins. Angelina’s vast experience in regulation, trading platforms, business development, restructuring, and investor and stakeholder relations will be pivotal as we continue the push towards mainstream cryptocurrency adoption and broaden our community.”

Huobi Readies to Transfer Operations to Public Blockchain

Exchanges Roundup: Tether/Bitfinex Drops Noble Bank, Bitmex Hires COOThe second largest cryptocurrency exchange according to Coinmarketcap’s adjusted volume rankings, Huobi, is preparing to migrate its operations to the company’s public blockchain.

In a recent interview, the director of Huobi Research of Blockchain Application, Hubery Yuan, stated: “We want it to become the world’s top public chain in terms of technolog[ical] sophistication. And a highly competent public chain coupled with strong operations, ecosystem, and communities can bring out great synergy.”

Voting to appoint the head of Huobi’s operational transfer project is currently underway.

Do you think that more cryptocurrencies will seek to conduct their operations on the blockchain? Share your thoughts in the comments section below!


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