Bitfinex Plans Exchange Token Amid Controversy
April 30 2019 - 11:30AM
ADVFN Crypto NewsWire
Bitcoin Global News (BGN)
April 30, 2019 -- ADVFN Crypto NewsWire -- Just last week, the news
came out that the New York Attorney General’s office has been
investigating both Bitfinex and Tether. Included in this
investigation is the claim that Bitfinex found themselves unable to
access $850 million in customer funds and tried to cover this up
with fraudulent transactions involving the Tether
stablecoin.
Since this investigation is
technically still ongoing, it might surprise you that Bitfinex is
reportedly planning to release its’ own proprietary exchange token.
While, according to CoinDesk, this news has not been completely
confirmed by the exchange itself, it has been confirmed by Dong
Zhao, who is a well-known shareholder in Bitfinex that is
frequently cited on the subject.
If this proves to be true and
Bitfinex releases its’ own equivalent to BNB, then it would be
logical to ask whether Tether has a place on the Bitfinex platform
at all. As of now, it functions like an exchange token since it is
usually used as one of the possible vehicles for traders to quickly
move between assets in a “stable” fashion.
With this in mind, it would also be
reasonable to conclude that if Bitfinex releases its’ own token,
they may be doing so to cut themselves loose from the constant
chaos that surrounds Tether. The Tether stablecoin has basically
been the most controversial cryptocurrency in history, next to
examples like Bitconnect. While Bitconnect clearly defrauded many
people, Tether has repeatedly been accused of being a fraudulent
project as well. Furthermore, what people seem to be forgetting is
that Tether’s possible negative influence on the market stretches
beyond Bitfinex to Tron, which has shown a large level of support
for the coin, and even the price of Bitcoin.
As Bitfinex reportedly has a few
weeks to give back the $850 million to customers, this saga is
actually still in its’ early stages. The result of this search for
the missing funds as well as the continuing conversation between
the NY AG and Bitfinex will ultimately determine whether anything
will play out in the exchange’s favor.
By: BGN Editorial Staff
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