Bitcoin Explodes to $7,500 as Tether Loses USD Peg

Bitcoin Explodes to $7,500 as Tether Loses USD Peg

Tether (USDT) stablecoin lost parity with the US Dollar after its price fell to lowest levels within the last 18 months.

"1. All cryptocurrency and fiat withdrawals are, and have been, processing as usual without the slightest interference; 2".

Following the split between Bitfinex and Noble Bank, the exchange created a shell account with Hong Kong-based HSBC according to the Block's Mike Dudas.

"Bitfinex is not insolvent, and a constant stream of Medium articles claiming otherwise is not going to change this".

Well, Bitfinex has released a statement, saying that it has obtained the approval of its banks to enable fiat withdrawal and deposits. One Tether token can now be purchased for $0.97 or 0.00014704 BTC on major cryptocurrency exchanges including Binance, MBAex, Bitfinex and ChaoEX. Since at least 2017, some market watchers have alleged that trading in Tether's coins on Bitfinex has helped prop up Bitcoin's price.

A little-known token may be fueling Bitcoin's rise.

More news: NASA's Chandra Observatory back in action
More news: LeBron recruit KD to Lakers? 'Hell no, 100 percent false'
More news: Pompeo briefs Trump after trip to Saudi Arabia, Turkey

Bitcoin's price varies from exchange to exchange, but the weighted index of prices reported by Coindesk puts it at $6,502.14 as of 10:30 p.m. EDT, up from a daily low of $6,239.44 but down from an intraday high of $6,946.50. That appeared to calm markets somewhat, with Tether paring some of its losses and Bitcoin giving up some gains.

The false report coincided with a routine Tether wallet maintenance. The core of the allegation is that Bitfinex issued Tether tokens without the US dollars held in reserve that are meant to underpin the cryptocurrency, a claim strongly denied. However, this has never been confirmed by independent auditors. Ties between Friedman LLP and Tether were dissolved, only furthering the skepticism surrounding USDT. According to the charts on CoinMarketCap, there is more than 20% uprooting in Tether's valuations in the last week.

Furthermore, professional trader and educator Tone Vays has gone live on YouTube to spend over 83 minutes talking about the Tether situation. There have been concerns regarding Tether's liquidity for quite some time now, and the lack of public third-party audits have cast a dark shadow over this project.

The firm that runs the digital currency, Tether, Ltd., has endured questions on whether or not it holds enough "reserves" to match the amount of tokens in circulation. Momentarily, the price of Tether crashed to sub-90 cents with the entire market rising as USDT was being emptied and money was pouring back into the rest of the market.

"Hypothetically, when the supply of USDT on Bitfinex surpasses a certain level required for maintaining operations (i.e. a seamless flow of deposits and withdrawals), a batch of USDT would be sent from Bitfinex to Tether for redemption against fiat United States dollars".

Related Articles

  • Trump threatens to send army to US-Mexico border in migrant row

    Trump threatens to send army to US-Mexico border in migrant row

    On Wednesday, an advance group of exhausted migrants reached Guatemala City where they took refuge in a church-sponsored shelter. No evidence has emerged of criminal affiliations among the migrants.

    Minnesota Timberwolves owner says Jimmy Butler will play hard

    Jimmy Butler did not punch one of his teammates in the face at center court, nor did one of his teammates slug him during pregame introductions.
    Alia Bhatt in NY  with beau Ranbir Kapoor and family

    Alia Bhatt in NY with beau Ranbir Kapoor and family

    It is no secret that Ranbir is now with dad Rishi Kapoor in the U.S. , wherein the veteran actor is undergoing treatment. Alia Bhatt was spotted attending the funeral with Brahmastra director and close friend Ayan Mukerji and Karan Johar .
  • WHO to meet on Congos Ebola outbreak as toll soars

    WHO to meet on Congos Ebola outbreak as toll soars

    Since Ebola virus was first identified in 1976, sporadic outbreaks have been reported in Africa. The health ministry said 73 patients had received new experimental treatments.

    Facebook Inflated Video Metrics By Up To 900%, Marketers Claim 10/17/2018

    Facebook knowingly inflated video ad metrics and lied to advertisers about it, according to a group of those advertisers. The latest filing came shortly after the advertiser's review of 80,000 pages of internal Facebook records.
    Mega Millions $900M, Powerball $430M Jackpots Await This Weekend

    Mega Millions $900M, Powerball $430M Jackpots Await This Weekend

    Excitement had already mounted earlier this week as many speculated whether the Mega Millions jackpot would hit a new record high. A $150,000 winning ticket from Wednesday night's Powerball drawing was sold in Owensboro.
  • Meghan Markle gifted her first tiara during royal tour of Australia

    Meghan Markle gifted her first tiara during royal tour of Australia

    When the Duchess of Sussex , 37, visited a family-run farm in Dubbo, Australia, Wednesday , she did not arrive empty handed. During a reception at Melbourne's Government House, Meghan was startled when she played with a Formula 1 vehicle .
    New Nightmare King Sandwich Coming To Burger King On October 22, 2018

    New Nightmare King Sandwich Coming To Burger King On October 22, 2018

    Burger King is building off prior successes with novelty menu items to draw interest around the Halloween season. The "Nightmare King" isn't just a seasonal name thrown on Burger King's latest burger .
    Joe Biden: Age ‘Legitimate Question’ if I Make 2020 Run

    Joe Biden: Age ‘Legitimate Question’ if I Make 2020 Run

    The former vice president argued there should "absolutely positively" be consequences if it is found the crown prince ordered Khashoggi's apparent murder and floated the cancellation of United States arms sales to Saudi Arabia as a possible retaliatory measure.
  • Turkish police search Saudi consulate again in Khashoggi case

    Turkish police search Saudi consulate again in Khashoggi case

    Khashoggi had left the country previous year amid the rise of Prince Mohammed, whom he wrote critically about in the Post . Media captionCCTV footage shows missing Saudi journalist Jamal Khashoggi entering the Saudi consulate in Istanbul .

    Trump calls Federal Reserve his 'biggest threat'

    There's a couple of other people there that I'm not so happy with, too, but for the most part, I'm very happy with people". Trump has blamed the market's big sell-off on rising rates and has described the Fed as being "out of control".
    Afghan election candidate killed by bomb under office chair

    Afghan election candidate killed by bomb under office chair

    Miller uninjured, attacker reportedly dead", Operation Resolute Support, the NATO-led mission in Afghanistan, said in a tweet. Afghan officials said the assault began as attendees were leaving the complex. "2 Americans wounded.