Category: Crypto

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Tether (USDT) Raises Concerns Of Market Manipulation As It Transfers $50 Million To Bitfinex

One of the top 10 cryptocurrencies, also referred to as a stable coin in the crypto-verse, Tether (USDT) recently issued $50 million in USDT, that, as reported by the OmniExplorer, Tether transferred to Bitfinex, one of the leading cryptocurrency exchange platforms in the world, on August 11th, 2018, at 11 AM UTC.

That prompted the cryptocurrency enthusiasts to claim that Tether is once more engaged in cryptocurrencies market manipulation. The people have also said that Tether often issues more USDT coins when the crypto market is going bearish.

The allegation of manipulation came up because of John Griffin and Amin Shams, two investigators at the University of Texas. The investigators released an article titled “Is Bitcoin really Un-Tethered?” The paper discusses how Bitfinex is using Tether to purchase Bitcoin on other crypto exchanges and especially when the Bitcoin (BTC) price is falling sharply in the market.

That is not the first time when Tether (USDT) raises concerns and gets accused of market manipulation

A comprehensive 3-page release was launched in June as a result of Freeh, Sporkin & Sullivan LLP investigation on Tether (USDT). This company has been granted complete access to Tether’s bank information together with information regarding the number of employees who actually own a part of the company’s shares.

This transparency was required when they uncovered a whopping $7 million, higher than what was recorded in a spot check of the Tether’s bank accounts.

Changpeng Zhao, the CEO of Binance, the world’ s leading cryptocurrency trading platform, recently expressed his worries regarding the Tether (USDT) cryptocurrency. In his opinion, Tether only profits from its trading portals. He also thinks the company is afraid of being shut down, and for this reason, they do not divulge their bank details.

Also, Charlie Lee, the founder of Litecoin (LTC), frequently stated that as its tokens are dollar-backed, Tether purchases cryptocurrency using these USDT tokens.

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Bitmain IPO Concerns The Cryptocurrency Industry

The crypto mining equipment manufacturer Bitmain remains focused on its Initial Public Offering (IPO) as criticism raises the alert on its financial prospects.

As Bitcoinist announced in late-July, the company reported that it plans to conduct an IPO of $14 billion by the end of this year, after earning more than $1 billion in Q1 2018.

In the meantime, pre-IPO investor offering data has given rise to concerns about Bitmain’s financial outlook, focusing in particular on its massive Bitcoin Cash (BCH) stocks, which may not be liquid until the markets are converted before the IPO launch date.

“According to Bitmain’s investor deck before the IPO, they sold most of their Bitcoin (BTC) for Bitcoin Cash (BCH),” stated on Twitter Samson Mow from Blockstream.

The pre-ICO data issued in the past week suggests that several sources have argued that its level of investment in BCH may ultimately scare off the investors who are aware of Bitcoin Cash (BCH) liquidity status and the role of Bitmain in its safekeeping.

Bitmain IPO concerns the cryptocurrency industry

While Bitmain staff, among them the CEO Jihan Wu, is still hesitant to disclose the less complimentary second-quarter results and the alleged “secret” mining, analysts appear to concur that a bullish market for cryptocurrency would probably fix the liquidity issues.

“Bitmain will not launch an Initial Public Offering (IPO) until they have favorable market conditions, which means that there is likely to be a bullish market approaching the actual date of the IPO,” reads a blog post on this topic, published on Medium.com.

“However, once it is made public, shareholders will want to know why Bitmain continues to siphon off profits to underpin a failing currency and how they intend to liquidate their massive position in Bitcoin Cash (BCH),” affirmed Vijay Boyapati, a software engineer.

In conclusion, the Bitmain IPO (Initial Public Offering), expected to raise $14 billion by the end of the year, concerns the cryptocurrency industry due to the massive Bitcoin Cash (BCH) the crypto mining equipment manufacturer holds.

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Indian Crypto Exchanges Try to Avoid Reserve Bank’s Crypto Ban and Offer Support for Tether (USDT) and TrueUSD (TUSD)

A growing number of crypto exchanges in India have started to list stable coins including Tether (USDT) and TrueUSD (TUSD). It appears that this may be an effort by some Indian crypto trading platforms to mitigate the adverse effects of the Reserve Bank of India (RBI) decision to prohibit financial institutions from providing banking support to anyone who deals in digital assets.

Indian crypto exchanged list stable coins such as Tether (USDT) and TrueUSD (TUSD)

Unocoin, a leading Indian cryptocurrency trading platform, said last week that it would be supporting TrueUSD (TUSD) on its Unodax exchange platform. TUSD is an ERC-20 token created on the Trusttoken platform, and every TUSD is intended to be exchangeable 1:1 against the USD.

At present, Unodax is reported to provide support for 23 different TUSD trading pairs, among them being Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Ripple (XRP). Inc42, an Indian news agency, stated that “the decision was made to minimize the impact of the RBI Circular on cryptocurrency investors and traders.”

The cryptocurrency trading platforms to bypass the Reserve Bank of India’s crypto ban

According to CryptoGlobe, on April 6th, RBI ordered all banks across India to cease providing banking solutions to crypto-related businesses and individuals seeking to exchange digital assets into fiat or vice versa.

“After RBI banned bank transfers for crypto trading and investment, we looked for plausible solutions to help our users continue without interruption and hassle,” said Sathvik Vishwanath, CEO of Unodax.

Zebpay, a primary Indian crypto exchange service, has just introduced TUSD to its platform. Currently, Zebpay only supports two trading pairs, BTC/TUSD and TUSD/INR (Indian Rupees).

Also, Wazirx has started to provide Exchange-escrowed Peer-to-Peer (P2P) solutions that enable consumers to make deposits and withdrawals with INR using Tether (USDT).

Although there were some disputes surrounding Tether (USDT), the market of the crypto does not appear to be concerned. In India, Wazirx’s new USDT escrow solution has gained popularity with the CEO of the Exchange, Nischal Shetty, reporting that “tens of thousands” of new traders had signed up for the exchange after providing the P2P escrow service.

Various other Indian crypto exchanges platforms have recently introduced support for Tether (USDT) and/or TrueUSD (TUSD).

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Tron (TRX) Moves From PoS To DPoS – Here Is Why!

Tron (TRX) tweeted a message on the official Twitter page on August 11th, citing the distinctions that exist between the Proof of Stake (PoS) and the Delegated Proof of Stake (DPoS) protocols.

The Proof of Stake (PoS)

The PoS protocol is where the miners place some of their coins in a specific block to authenticate a transaction. The block then picks them out according to an algorithm of how much time or how many coins the miner possesses. Once chosen, the miner checks the transaction.

The likelihood that a miner will be directly elected is dependent on the number of coins he is wagering. The Proof of Stake protocol held a significant edge over Proof of Work in reducing power consumption and system tension and promoting for faster transactions.

The Delegated Proof of Stake (DPoS)

On the other hand, the DPoS is an accurate and more useful interpretation of the PoS protocol. The employment of a permanent voting system and a system of reputation to reach consensus are two of the main characteristics of the Delegated Proof of Stake.

Community representatives vote for their Super-Representatives who subsequently authenticate the transactions to earn a reward.

Why Tron (TRX) moved from PoS to DPoS?

There are many reasons why Tron (TRX) changed its running protocol from a PoS to a DPoS. The main reason for the shift is that community members have more power within a DPoS protocol, and can even govern the network.

Additionally, in a DPoS platform, there are virtually zero risks of fraudulent activities, as the community members are the ones who authenticate a transaction before it happens. This method is opposed to the PoS protocol where an illegal activity or a threat can only be discovered after it happens.

Besides, Tron (TRX) moved from PoS to DPoS to reduce costs and electric consumption, but also to give more power to investors who can now decide who becomes Super-Representatives.

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Brazil Officials And The Local Crypto Community Still Debate Possible Cryptocurrency Regulations

In a new meeting demanded by the Chamber of Deputies, a group of Brazilian parliamentarians debated on Thursday, August 9th, on what guidelines should be taken into account to formulate possible blockchain and cryptocurrency regulators. The discussion was held publicly in conjunction with the Getulio Vargas Foundation’s Applied Information Technology Center, in Sao Paulo.

Some of the participants bet on maintaining the freedom offered by the blockchain technology

While the issue of cryptocurrency was not addressed in depth, the lack of professionals with knowledge of protocols such as in the Bitcoin (BTC) blockchain was debated. Some participants argued that a blockchain alone is not a magic solution.

It is important to mention that the Brazilian crypto community is one of the largest in South America, with lots of active members on social networks and meetings with local entrepreneurs, and now also with parliamentarians.

The meeting also served to review the Initial Coin Offerings (ICOs) sector

The discussion in this direction was conducted by Felippe Barretto, an analyst with the Brazilian Securities and Exchange Commission. The executive stressed that the ICOs do not have any regulation and that their objective is to seek financing from “the retail trade.”

Some Brazilian officials demand for cryptocurrency regulations

That is not the first time when this type of meeting between officials and various members of the crypto community has taken place in Brazil.

Last June, the Commission on Science, Technology, Communication and Information Technology of the Chamber of Deputies discussed different issues regarding a potential framework for future cryptocurrency regulations.

On that occasion, parliamentarians Thiago Peixoto, Odorico Monteiro, and Vitor Lippi stressed the need to create a regulatory framework. However, the representative of the Central Bank of Brazil, Mardilson Fernandes Queiroz, suggested that blockchain technology doesn’t need any regulation, but that cryptocurrencies do.

On the other hand, Joao Amoedo, a future presidential candidate of Brazil, said that cryptocurrencies can be a viable payment method, and are no threat to fiat money and central financial and banking systems.

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