First and foremost, a quick shoutout to Bitfinex’ed who has done some amazing detective work. Check out his Twitter feed.
Within a week of being hacked for $30 million, Tether is able to “print” over $120 million of new currency, which then can only be exchanged for other cryptocurrencies.
So basically since Tether is required to have an equivalent amount of dollars in a bank (no one knows which one), this means an institutional investor believed that despite being hacked, dumping in a $120 million for USDT is a wise investment decision.
The more I dive into the Tether controversy, the more I see an impending problem for Bitcoin. They just created another $45 million tether. In total, that makes +$90 million in extra Tether this week. Tell me, do you think a bank would lend them that much money after a $30M hack?
— Nicholas Merten (@Nicholas_Merten) November 28, 2017
Why aren’t they then buying the Tethers that are on discount on Kraken?
Over the last 24 hours, Tether has shown over a billion US dollars in market volume.
Almost all of the recent market activity we are seeing is Tether flowing in to the market, mainly through Bitfinex.
Tether’s ledger is transparent for all to see. If you trace each address on their Rich List you soon find they all ultimately connect to addresses ending in …gZw.
Bitfinex.
Bitfinex, who has been clearly connected to Tether, is the world’s largest Bitcoin exchange by volume, with Kraken and Coinbase right behind it.
Bitfinex also lends the Tethers out at interest, which then fuels the price of Bitcoin.
Here is a graph done by Bitfinex’ed that correlates Bitcoin price with the influx of Tethers.
Related Article: It’s like Mt. Gox Part 2: Tether ‘Hack’ EXPOSES Bitfinex in Money Laundering
If things with Tether were to go south, Tether has no legal responsibility:
Could this all have something to do with Bitcoin futures on the horizon?
Continue reading full article here.
