Bitfinex is dying?

in #bitcoin7 years ago

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Bitfinex is one of the most famous exchanger for cryptocurrencies, and is currently in the first place with regard to Bitcoin's trading volume in usdt (what a surprise ...).
Quite improbable that it closes, right? Well, it depends on how much you are willing to risk ...
I do this post to inform you, without any alarm.. you will decide what to do.
Let's start by saying that Bitfinex "creates" Tether (USDT). For every USDT issued, there should be $ 1 equivalent in fiat currency in deposit.
Exactly a year ago, the USDTs had a marketcap of about $ 7 million, while now it's about $ 700 million: 100x in a year! Only in November, they had an increase of about $ 200 million.


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Now, some questions arise spontaneously ... where do all this money come from? $ 200 million in 15 days .. are we sure there is a dollar behind every usdt? Not so sure, as Bitfinex continues to keep everyone in the dark.
Do you remember that Bitfinex was hacked into the summer of 2016, with a $ 72 million damage? On 3 April they declared that they had paid all their debts, but that is another point... always keep it in mind.
On March 23 this year their bank closed (Wells Fargo), and Bitfinex found itself without a bank. Not really the best scenario for a exchanger that promises a dollar reserve for every usdt I would say ...
Poor Bitfinex, a misfortune after another, what choices would they had?

  • Declare bankruptcy, destroying economically a myriad of people who trusted them, meanwhile they were looking for a new bank.
  • Print new Usdt, raise Bitcoin's price more and more constantly, so they can attract more and more investors and money, trying to resolve their internal issues in the meantime.

You can guess which was the choice they took, and as long as USDT withdrawals in $ were disabled (you can not convert USDT to $ in the meantime, what a surprise huh?)
Only "whales" can now turn dollars into tether and vice versa, contacting them privately.
They have created a nice Ponzi I would say, meeting people who want to deposit, with those who want to withdraw dollars.
Everything is perfect, unlikely it can not continue infinitely and probably none of the Bitfinex staff would have thought it would be needed so much time to re-establishing a relationship with a bank. We are about 7 months (in which, if you notice Bitcoin's price is skyrocketing to the stars. Too many coincidences? What did Agatha Christie say about the coincidences?)
Look at the nice graph below, the red line indicates the time at which Wells Fargo, Bitfinex Bank, closed.


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In summary ..

  • $ 72 million stolen
  • 7 months in which Bitfinex did not have any Bank behind (it is rumored to have had it for a while, the same as C-CEX, based in a small town by 50,000 inhabitants ..)
  • No reports that actually attests the dollars held in reserve for every usd held
  • USDT deposits and withdrawals in USD and vice versa LOCKED
  • Every time new USDTs are printed, Bitcoin will crumble. (you can check HERE)
  • They have just announced that 30 million of theter have been robbed: LINK

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Today the icing on the cake, discounts for those who deposit in EURO, 15% trading bonus! ( Are you serious ? )

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These are just information, if you are interested in the issue there are tons of information on Google.
If you have funds on Bitfinex, do your research and decide accordingly, I personally will not even hold the pennies there.

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