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New York Prosecutors Demand Transparency From Bitfinex and Tether

May 6, 2019 |

New York Prosecutors Demand Transparency from Bitfinex and Tether

The crypto community has been laser focused on the current dilemma between Bitfinex exchange and New York prosecutors over the alleged loss of $ 850 million of co-mingled customer and corporate funds. After the craziness last week, the New York Attorney General’s (NYAG) office has now demanded that Bitfinex must show transparency by turning over documents tied to the firm Tether.

Also read: Crypto Community Monitors Bitfinex Wallets and the Strange 6% BTC Premium

NYAG Wants Bitfinex Disclose Tether Documents

News.Bitcoin.com recently reported on the NYAG court documents that accuse the cryptocurrency exchange Bitfinex of losing $ 850 million and using the stablecoin company Tether to cover the loss. The Bitfinex and Tether saga has continued into its second week with the NYAG office and the Attorney General Letitia James demanding Bitfinex release documents concerning the Tether situation. The recent filing explains that the NYAG office believes Bitfinex has had more than enough time to resolve the situation and the agency wants all relevant documents that explain how Tether played a part in this ordeal.

New York Prosecutors Demand Transparency From Bitfinex and Tether
NYAG Memorandum sent on May 4.

“We’ve given you much latitude to resolve these situations and months beyond your original estimates, we need to have more transparency now,” the NYAG filing detailed. “While that and other discrepancies do not change the core issues in this case — that Bitfinex and Tether misled their clients and investors — they only heighten the OAG’s need to obtain documents and information in a timely, organized fashion so that the OAG may understand what has taken place, and what continues to take place, at these companies.”

After the NYAG filing, Bitfinex responded by explaining that the preliminary injunction filed last week cannot be justified and the NYAG office will “not succeed on the merits.” Moreover, Bitfinex noted that “there was no ongoing fraud, and no ‘victims’” and the NYAG must establish some sort of grounds for authority, in order to address the company in this fashion.

New York Prosecutors Demand Transparency From Bitfinex and Tether
Bitfinex responded to the memorandum by saying there are no victims and there’s no fraud taking place. Bitfinex argues that the preliminary injunction “would not protect anyone but would instead cause a great disruption to Bitfinex and Tether.”

An Initial Exchange Offering and CMC Removes the Bitfinex BTC Price From Its Weighted Average

The last few days have also revealed that Bitfinex may try to raise $ 1 billion through an initial exchange offering (IEO). Zhao Dong, a Bitfinex shareholder, told the press on May 1 that the IEO organizers might issue 1 billion tokens that will be sold for $ 1. Zhao also claimed that $ 500 million were already subscribed and qualified investors will be able to participate. Moreover, Zhao operates a lending platform called Renrenbit and allegedly the firm has been preparing to start pre-orders for the IEO token, called LEO.

New York Prosecutors Demand Transparency From Bitfinex and Tether

Currently, Bitfinex has not confirmed the IEO or the pre-sale of LEO on the platform Renrenbit. If it does occur, it won’t be the first time Bitfinex has launched a sizeable token sale, as it released an equity exchange token in October 2016 in response to the exchange breach that took place two months prior. Bitfinex issued 20 million BFX tokens and its chief strategy officer, Philip Potter, said at the time that the firm’s “primary objective has been to make our customers whole.”

New York Prosecutors Demand Transparency From Bitfinex and Tether

In addition to the recent filing from the NYAG office, the response from Bitfinex, and the purported IEO pre-sale, the BTC/USD premium on the exchange is still much higher than average. At press time, the price per BTC on Bitstamp is $ 5,652 but on Bitfinex the price per coin is $ 6,023. The Bitfinex BTC cold wallet still holds roughly 89,404 BTC or $ 514 million and hasn’t changed much since May 1. The wallet had originally dropped from 120,000 BTC to 89,404 in just a few days after the April 24 injunction. The Bitfinex ETH cold wallet had also declined by 40% since last week according to the exchange’s ETH-based cold wallet data. Since the exchange rate on Bitfinex has been between 5-8% higher than the average spot price, depending on the hour, cryptocurrency data website Coinmarketcap.com recently removed the Bitfinex BTC price from the overall aggregated global average. It’s safe to say this story is not over yet and will surely continue to unfold in the days to come.

What do you think about the situation between the NYAG, Bitfinex, and Tether? What do you think about Coinmarketcap’s decision to exclude the BTC/USD exchange rate from Bitfinex from its weighted average? Let us know what you think about this subject in the comments section below.


Image credits: Pixabay, Shutterstock, Scribd, Pacer, and Coinmarketcap.com.


Have you seen our Bitcoin Cash (BCH) tips generator? Anyone can create tips in order to give BCH by email or printable tickets. Recipients easily redeem tips by visiting a web page with instructions, and if the funds are not redeemed you get the money back. Check it out today!

The post New York Prosecutors Demand Transparency From Bitfinex and Tether appeared first on Bitcoin News.

Bitcoin News

Twitter Shenanigans and Tether Probe in the Weekly Video Update From Bitcoin.com

April 28, 2019 |

Cryptocurrency advocates try to get the CEO of Twitter to ban @Bitcoin and the New York Attorney General goes after the company behind Tether. This and more in the weekly video news update on Bitcoin.com’s Youtube channel.

Also Read: How to Start Cloud Mining Bitcoin Cash

Watch Bitcoin.com’s Weekly News Update

This week’s show covers the latest attempts by BTC maximalists to deplatform @Bitcoin from Twitter over the account owner’s pro-BCH stance. One of them shared a private message sent to to the social media company’s CEO, Jack Dorsey, about getting the @Bitcoin account banned, to which he replied: “What do you recommend we do with it?” This might be a prelude to a new round of censorship on the platform.

Also discussed is the announcement by New York Attorney General Letitia James that her office obtained a court order against iFinex Inc., operator of the Bitfinex exchange, and Tether Limited, issuer of the USDT, in connection with activities that may have defrauded investors. “Our investigation has determined that the operators of the ‘Bitfinex’ trading platform, who also control the ‘tether’ virtual currency, have engaged in a cover-up to hide the apparent loss of $ 850 million dollars of co-mingled client and corporate funds,” said James.

Other subjects discussed in the weekly update include an investment by Samsung in hardware wallet Ledger, the growing number of bitcoin cash meetups around the world, BCH donations, new merchant solutions, new tokens and upgrades to the protocol.

Make sure to subscribe to the Bitcoin.com Youtube channel and leave a comment on the latest video.


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 Twitter Shenanigans and Tether Probe in the Weekly Video Update From Bitcoin.com appeared first on Bitcoin News.

Bitcoin News

While Tether Withdraws Claim of USD Backing, Rival Stablecoins Provide Monthly Attestations

March 18, 2019 |

Tether Withdraws Claim of USD-Backing While Rival Stablecoins Provide Monthly Attestations

The controversy surrounding the backing of Tether’s USDT tokens has resurfaced following a recent alteration to the company’s terms of service that now state the reserves backing USDT comprise “traditional currency and cash equivalents and … other assets and receivables from loans made by Tether to third parties.” Despite tether’s dominance among stablecoins by market share and capitalization, Tether is facing increasing competition from newer stablecoin projects that have been able to provide regular attestations evidencing U.S. dollar backing since launch.

Also Read: Bitcoin Cash Developers Launch Privacy-Preserving Light Client Neutrino

New Tether Terms of Service State Stablecoins are not Exclusively Backed by USD

Tether has updated its terms of service regarding the backing of its USDT token, apparently reversing previous assertions that all USDT tokens are backed one-to-one with USD reserves.

Tether’s homepage now states that “Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities.”

While Tether Withdraws Claim of USD Backing, Rival Stablecoins Provide Monthly Attestations

The company’s legal page also states that “the composition of the Reserves to back Tether Tokens is within the sole control and at the sole … discretion of Tether,” adding that “Tether reserves the right to delay the redemption or withdrawal of Tether Tokens if such delay is necessitated by the illiquidity or unavailability or loss of any Reserves held by Tether to back the Tether Tokens, and Tether reserves the right to redeem Tether Tokens by in-kind redemptions of securities and other assets held in the Reserves.”

Rival Stablecoins Evidence USD Backing Through Monthly Attestation Reports

While Tether appears to have backed down on its previous claim that all outstanding USDT are tokens are backed by USD, many of its rivals have provided regular attestation reports demonstrating fiat backing.

Trueusd has provided between one and three attestation reports per month since launching during March 2018, with top 40 accounting firm Cohen & Company producing the reports. As of Trueusd’s most recent report, which refers to accounts examined as of Feb. 28, 2019, the company’s 201,727,658 outstanding TUSD tokens were then backed by $ 202,621,765 dollars that were held in Trueusd’s bank accounts.

While Tether Withdraws Claim of USD Backing, Rival Stablecoins Provide Monthly Attestations

On Feb. 15, 2019, Circle published its fourth monthly attestation report pertaining to the USD reserve for its USDC token. The report states that as of January 31, 2019, the outstanding 307,7903,924 USDC tokens were backed by $ 307,848,312 held in custody accounts.

Since launching in Sep. 2018, Paxos has provided monthly attestation reports provided by Withum for its Paxos Standard Token Stablecoin. Paxos’ most recent report asserts that as of Feb. 28, 2019, the 109,543,189.7 PAX tokens were backed by USD reserve “at least equal to or greater than “$ 109,543,189.70.”

What is your response to the changes recently made to USDT’s terms of service? 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 While Tether Withdraws Claim of USD Backing, Rival Stablecoins Provide Monthly Attestations appeared first on Bitcoin News.

Bitcoin News

Tron Partners With Tether to Launch TRC20-Based Stablecoin

March 4, 2019 |

Tron Partners With Tether to Launch a TRC20-Based Version of the USDT Stablecoin

Tether (USDT), the seventh most valuable crypto asset by market cap, has shrugged off attempts by newer stablecoins to usurp it. Now, a new version of tether is coming to the Tron network.

Also Read: Gibraltar Exchange to List Bitcoin Cash Fiat Trading Pairs

Tether to Trade on Tron

Tron is officially partnering with Tether to launch a TRC20-based version of the USDT stablecoin, according to a statement from both ventures. Adding the dollar-pegged coin to its blockchain is meant to elevate Tron’s existing ecosystem of decentralized applications (dapps), improve overall value storage, and increase its decentralized dxchange (DEX) liquidity. It is also said to make the network more accessible to enterprise-level partners and institutional investors. The companies expect to implement USDT on Tron by early Q2 2019.

Tron Partners With Tether to Launch TRC20-Based Stablecoin

“We are pleased to announce this collaboration with the Tron Foundation. This integration underlines our commitment to furthering innovation within the cryptocurrency space as we continue to anticipate the needs and demands of the digital asset community,” commented Jean-Louis van der Velde, chief executive officer of Tether.

Tokens Used for Stablecoins, Games, Torrents

TRC‌20 is a technical standard used for smart contracts on the blockchain for implementing tokens with the Tron Virtual Machine (TVM), similar to Ethereum’s ERC‌20. “Our collaboration with Tether to bring a USDT TRC20 token to Tron will bring incredible stability and confidence to users,” said Justin Sun, founder of Tron and CEO of Bittorrent. “As we perform and execute on our vision, they can easily redeem their tokens for US dollars.”

Tron Partners With Tether to Launch TRC20-Based Stablecoin

In the Daily on Monday we reported that Tron Arcade and Mixmarvel have teamed up to bring the online game Slither.io to the blockchain. Hypersnakes, the blockchain version of the multiplayer worm-like game, allows players to compete and earn TRX without a wallet, making it easier to acquire the cryptocurrency. The Bittorrent token (BTT) is another example of a digital coin based on the Tron protocol.

What do you think about Tron partnering with Tether? 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 Tron Partners With Tether to Launch TRC20-Based Stablecoin appeared first on Bitcoin News.

Bitcoin News

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!


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