The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

Top Exec Exits Tether and Bitfinex as Hundreds of Millions in USDT Hit Crypto Market

by Daily Hodl Staff
June 25, 2018
in Bitcoin

Chief Strategy Officer for Tether and Bitfinex Phil Potter says he’s stepping down from both roles at the two companies.

Tether prints a controversial stablecoin that it says is backed 1:1 by the US dollar. Bitifinex is one of the largest cryptocurrency exchanges, ranking fourth in the world by volume over the past 24 hours.

Tether creates liquidity in the cryptocurrency market by allowing traders to cash in and out of Bitcoin quickly.

The two companies are closely linked. According to a report by The New York Times, Tether and Bitfinex share the same operators: Phil Potter and Giancarlo Devasini. Reuters reported that Bitfinex’s CEO Jan Ludovicus van der Velde will temporarily replace Potter, who announced his departure on Friday.

The close link between the companies has been the source of ongoing debate that Tether is used to manipulate the price of Bitcoin. Tether has tried to quell claims that the USDT, its stablecoin, is fraudulent and that each coin is not actually backed by a $1 deposit.

Allegations against Tether and ongoing cries that the company is artificially inflating the price of Bitcoin have not stopped the company from issuing an additional $250 million in USDT today, according to tracker OmniExplorer.

Tether hired Freeh Sporkin & Sullivan to review its holdings and quell the onslaught of criticism. The law firm reported that on the day of the review, Tether’s total deposits exceeded the dollar value of all Tether coins in circulation.

But that assertion has been challenged. An independent academic paper issued by John Griffin, a finance professor at the University of Texas, and Amin Shams, a graduate student, found that Tether’s stablecoin USDT played a role in the price of Bitcoin and other cryptocurrencies during the recent boom.

This was not the first report detailing the impact of Tether on the market and the price of Bitcoin. In December, Sarit Markovich, a professor at Northwestern University’s Kellogg School of Management, wrote an article for Fortune highlighting the importance of having Tether audited by a top-tier firm.

She wrote, “The issue is that, like any investment vehicle, the value of bitcoin and other cryptocurrencies (forms of digital money) is subject to manipulation by large entities that have a stake in it, especially large-scale traders. The cryptocurrency exchange Bitfinex is the main actor to think about here.”

Historically, when Tether sends USDT to Bitfinex, the price of Bitcoin goes up, indicating that the new supply of USDT is used to buy Bitcoin. This fuels demand, spiking the price.

“On one hand, there’s nothing wrong with this,” writes Markovich. “It’s just the way the currency markets work. And if the currencies involved are truly backed up by dollars, there’s not much risk in the system.” But the sticky point is whether or not an independent audit of Tether can be ascertained.

Tether supporters cry FUD.

#Tether. Not sure what the big conspiracy is. Tether is measure of cash deposits to exchanges. Full transparency. Imagine if every stock brokerage was forced to do same. Cash infusions = price increases. No Duh.

— Mill Creek Research (@MillCreekResrch) June 25, 2018

Litecoin founder Charlie Lee has backed Tether’s claim that the USDT is backed by the dollar. He gave his assessment of the situation in a tweet, setting off a fresh debate.

Check Latest News Headlines


 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Submit a Press Release

Industry Announcements

  • BlockJoy Secures Nearly $11 Million From Gradient Ventures, Draper Dragon, Active Capital and More To Launch Decentralized Blockchain Operations
    February 2, 2023
  • Peer Acquires Elite Team of Engineers Behind Zenly’s Popular 3D Maps
    February 1, 2023
  • Sign Up Today for the TRON Grand Hackathon aka HackaTRON Season Four
    February 1, 2023
  • MegaWorld Land Gameplay on BNB Chain Starts February 15, 2023
    February 1, 2023
  • Web 3.0 Hackathon on Astar Sponsored by Toyota Motor Corporation
    February 1, 2023
  • Match-Trader White Label by B2Broker Gives Brokers a Comprehensive Online Trading Platform With B2Core Integration
    February 1, 2023
  • Addressable Raises $7.5 Million To Enable Web 3.0 Companies To Acquire Users at Scale
    January 31, 2023
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$23,589.32
$23,589.32
2.22%
Ethereum
$1,649.39
$1,649.39
2.25%
Cardano
$0.402981
$0.402981
0.03%
XRP
$0.41244
$0.41244
1.13%
Dogecoin
$0.091723
$0.091723
4.08%

Spotlight

  • Solana-Based Trading Platform Mango Markets Sues Crypto Trader Behind $100,000,000 Exploit
    January 27, 2023
  • Legendary Trader Peter Brandt Says Bitcoin Flashing Rare Bullish Signal – Here’s His Target
    January 31, 2023
  • Rich Dad Poor Dad Author Details Why Bitcoin Is Exploding, Says Top Crypto Is One of the ‘Hottest Subjects’ on Earth
    February 2, 2023
  • Bitcoin Burst to $30,000 Incoming, Says Popular Crypto Analyst – Here’s the Timeline
    January 26, 2023
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2023 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2023 The Daily Hodl