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Here's a thought - Bitfinex has been one of the largest exchange. Today's coinmarketcap says they had 500 million in volume. Assuming 0.11% charge that is nearl
by thisisit 9y ago
Here's a thought - Bitfinex has been one of the largest exchange. Today's coinmarketcap says they had 500 million in volume. Assuming 0.11% charge that is nearly 50k in fees today or 15 million a month. And this is just in bitcoin. I assume that they are doing equally good in other pairs too. So, if someone is funding them with an eye to become the biggest player in the market like Uber, Amazon etc, this might be feasible.
Or they can be taking out a line of credit on the future cash flows from the exchange fees.
Without knowing the full picture this might be just speculation on whether they have the money.
The unwinding might come from their funding (or line of credit) running out. At least that is my theory.
What other reasons can cause their downfall?
- Nursie 9y ago>> Here's a thought - Bitfinex has been one of the largest exchange. Today's coinmarketcap says they had 500 million in volume. Assuming 0.11% charge that is nearly 50k in fees today or 15 million a month. This month alone they have created 850 million in tethers, with complete opacity about where they might come from. I don't believe that's funding, I think it's printing tethers from nothing.
- blocksceptic 9y agoMany have speculated that a good portion of the volume on bitfinex is wash trading by insiders, who are presumably not paying the same trading fees as everyone else.
- blocksceptic 9y agoin my opinion, the un-tethering will almost certainly come when the market stops valuing 1 USDT at 1 USD. No amount of crypto handwaving can create fiat balances at actual financial institutions, so this will likely happen when new money coming into the space dries up to the point where it's no longer enough to cover the costs that have to flow out, e.g. from people cashing out and miner's electricity bills.