Why the Crypto Market has been Crashing
Tether is a sister company of Bitfinex. As a matter of fact, they both have the same CEO. This isn't a problem at all, but where the problem lies is where there is speculation that Tether does not indeed the cold hard cash backing up it's coin like they say that they do.
This would pose a very big problem for crypto because Tether is tied to a numerous amount of exchanges, and rather than trading back to the USD, many only allow you to trade it to Tether.
The Commodity Futures Trading Commission subpoenaed the financial records of Tether to see if they indeed have the cash that they should to back up their coin.
If Tether winds up having all of the cash that they are supposed to, that will quickly end the speculation and sell off that we have been seeing over the last couple of days. If they don't, it could mean a serious decline for the price of the entire crypto market.
On top of all of that, South Korea recently implemented their new regulations on crypto trading accounts, and I think many people dumped their coins because of this.
To make matters even worse, Facebook recently announced that they were banning all ads that mentioned cryptocurrency.
If the onslaught of negative news from the mainstream media hasn't been enough, all of these facts have helped push the price of almost every crypto out there down over the last few days.
Let's hope we see a rebound soon, and let's all hope that Tether is 100 percent legitimate as well.
How do you think this will all play out? Tell me in the comments!
To the moon,
The way I see it, Tether is just a vehicle for trading in and out of different currencies, and that is all I have ever used it for because of it's stability. Trading pairs is more difficult that it looks and Tether has filled the need for simplicity. What makes Tether so much different from any other currency that IS NOT backed up by fiat?
My thought is that it is good that a regulator intervene as they have not been transparent enough with the concept of tether. Tether is not a bad concept if done responsibly and transparently; it is very similar to money market funds which serve as short term investments for investors "parking" cash in the short term. If something is not being done right with investor money, then it should come to light so that investors can make informed decisions with their money. I personally avoid USDT and rather have the money in fiat or one of the bigger cryptos like BTC, BCH, LTC or ETH. I also have these positions in hardware wallets to protect me from the exchanges.
cryptoes are future.
I think there's a brighter future out there. This is just a trying times. Governments are worried over regulations and taxation that's why we are having issues with the Asian market.
About tether, I am still looking to understand fully well how they come into play in all this
Im happy someone is talking about tether possibly not being backed up by actual dollars. Tether is bubble waiting to be popped and when it does it will reck havoc on the entire market. Loved the post! Thank you sir for mentioning this subject :)
The fight against cryptocurrencies is TOUGH !! I really hope Tether has the cash, the last thing the market needs right now is another decline ..
I don't trust tether, but wishing I did right now.
I also don't mind lower lows to buy back in. I think this technology is the future and my diverse portfolio will be profitable in the long term.
i think tether has their money together its just hard looking at the market right now
I know nothing about crypto .Why did you say "
Facebook is banning all ads that mentioned cryptocurrency. "?
To add to the FUD, Facebook is also removing all cryptocurrency related blogs. I though Zuckerberg supports crypto. Oh well. This is life.