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Bitfinex is the same operation as Tether (commingled ownership and common control). Tether’s product is the eponymous “stablecoin” which promises that each USDT
by patio11 8y ago
Bitfinex is the same operation as Tether (commingled ownership and common control). Tether’s product is the eponymous “stablecoin” which promises that each USDT is backed by $1 USD sitting in a bank account and available for withdraw on demand.
This promise is a lie. This announcement walks back the lie.
This is very important for the cryptocurrency ecosystem, because Bitfinex is a large exchange, liquidity provider, counterparty, and (I strongly suspect) lender. If they are factually insolvent or fail in a bank run, that is a Very Big Deal, at least insofar as anyone cares about cryptocurrency.
- wild_preference 8y agohttps://twitter.com/patio11/status/1051560132235030528 https://twitter.com/patio11/status/1051560132235030528 > Tether ... is currently in the early stages of a bank run. Still think that's true? As for this news, as long as they're honoring withdrawals, it's a good thing. Before, tether was relying on bitfinex to convert to usd. https://tether.to/tether-reopens-account-verification-and-direct-redemption-of-fiat-from-its-platform/ https://tether.to/tether-reopens-account-verification-and-di...