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Binance, Poloniex, and Huobi Crypto Exchanges Hold More Tether (USDT) Than Bitfinex

The Binance, Poloniex and Huobi exchanges currently own more Tether (USDT) than Bitfinex, although this exchange platform shares the same CEO as Tether Limited, the stable currency issuer.

Binance, Poloniex, and Huobi possess more Tether (USDT) than Bitfinex, the issuer of this stable coin

Bitfinex, thus, positions itself as the sixth USDT holder, according to data released by CNBC’s Ran Neuner on his Twitter account, noting that Binance is the platform with the highest amount of Tether (USDT), after the stable coin’s treasury. He adds that this situation could mean that Bitfinex has lost many customers or that its clients are exchangingTether for other cryptocurrencies.

Neuner’s statistics are based on an analysis published on October 19th by the firm Element Group which evaluated the situation of the most popular stable coin in the market.

The analysts of the before-mentioned firm highlight the lack of information of the Bitfinex exchange regarding its situation and that of Tether and draw attention to the latest movements made by Bitfinex, which has transferred a large part of Tether (USDT) tokens to the Tether treasury.

Bitfinex crypto exchange is experiencing a bleak period, according to some analysts

“Since October 3rd, Bitfinex has sent a total of 690 million Tether tokens from Bitfinex’s Tether wallet to the Tether Treasury. That has reduced the current supply from about $2.8 billion to $2.1 billion in a short time. Therefore, Bitfinex has spent considerable resources to defend the Tether bond and, in the absence of this buying pressure, it is likely that Tether (USDT) has crashed even further and provokes, even further, the sale in the wider cryptocurrency market,” Element Group reported.

The firm speculates that this situation could be related to the problems that Tether (USDT) and Bitfinex appear to be experiencing in securing a stable banking relationship. That is based on information published at the beginning of October that Noble Bank was looking for buyers and had lost several of its clients, including Tether and Bitfinex.

Fears suggest that the USDT stable coin does not have sufficient support or that Bitfinex is in a state of insolvency.

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Bitfinex To End Fiat Deposit Freeze, While Tether (USDT) Fell Below The $0.90 Mark

Tether (USDT), the most popular USD-backed “stablecoin,” just fell below the $0.90 mark on Bitfinex as the regular investors turned to Bitcoin (BTC) and other cryptocurrencies, worrying about the USDT reserves. At the same time, Bitfinex announced it would end its fiat deposit freeze.

According to CoinMarketCap, Tether (USDT) experienced a drop, reflected by a 5% increase in Bitcoin (BTC). However, at the moment of this writing, Tether (USDT) trades at $0.965, falling by about 2.5% over the last 24 hours. On the other hand, Bitcoin (BTC) sells at $6,624 after surging by about 5% in the previous day.

Bitfinex paused deposits in fiat currency for “certain customer accounts” after they suffered some “processing complications.” However, Bitfinex announced that they would end fiat deposits freeze, about at the same time Tether (USDT) dropped below the $0.90 mark.

“How any rational party can claim insolvency when the opposite is there for all to see is interesting and, once again, perhaps indicative of a targeted campaign based on nothing but fiction,” Bitfinex representatives stated.

Bitfinex To End Fiat Deposit Freeze, While Tether (USDT) Fell Below The $0.90 Mark

Last Thursday, when Bitfinex revealed that fiat deposits are paused, some investors became suspicious due to the lack of details from Bitfinex regarding the mentioned “complications” that made the exchange halt fiat deposits.

“We are working to implement a new and increasingly robust fiat deposit system to be available in the next 24 hours, by Tuesday, October 16th, 2018, to allow for the efficient processing of the fiat deposits,” reads the latest update on the situation, offered by Bitfinex.

However, the Bitfinex decision to pause fiat deposits triggered some reactions in traders who turned to Bitcoin (BTC) and other cryptocurrencies, concerning the Tether (USDT) reserves. The movement caused Tether (USDT) to drop below the $0.90 mark on Bitfinex, eventually, and to generate a slight surge in Bitcoin (BTC) value against the US Dollar.

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Tether (USDT) Stablecoin Doesn’t Affect Bitcoin (BTC) Price, But Influences BTC Trading Volumes

The stable cryptocurrency Tether (USDT) has no impact on the price of Bitcoin (BTC), but it doesn’t affect its trading volume, according to the results of the latest academic research conducted by Professor Wang Chun Wei, of the School of Business at the University of Queensland, Australia.

Tether (USDT) has nothing to do with Bitcoin (BTC) price surges

According to the results of the study, which will be presented in the October 2018 edition of Economics Letters, there is no evidence to suggest that Tether (USDT) emissions cause Bitcoin (BTC) price surges.

The new study contradicts previous research that the stablecoin was manipulating the cryptocurrencies market, leading to the significant surge of Bitcoin (BTC) in December 2017.

Wei’s findings, focused mainly on market valuation and efficiency, used the vector autoregression (VAR) model, which serves to investigate whether or not there is a causal relationship between something in the past and something in the future.

The study was thus based both on the daily information on the commercial activity of USDT and BTC and on data from Omni Explorer, which lists all the addresses of new USDT issues.

Tether (USDT) is, however, influencing Bitcoin (BTC) trading volumes

“We found a positive relationship between Tether’s concessions and the increase in trading volumes the following day. Our VAR estimates show that both Bitcoin (BTC) and Tether (USDT) trade increases after Tether’s subsidies. However, these increases in trading volume do not lead directly to increases in Bitcoin (BTC). The effect is short-lived, and trading volumes return to normal in 5 days,” said Wang Chun Wei.

These findings largely coincide with a report published by Oleksandr Ivanov, a data scientist at the University of Groningen, the Netherlands, who also found that there is no correlation between the growth in the volume of circulating Tether (USDT) and the price of Bitcoin (BTC).

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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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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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