(https://www.trustnodes.com/wp-content/uploads/2019/05/bitcoin-coinbase-bitfinex-price-may-2019-1175x500.jpg)
On the left is Coinbase. On the right is Bitfinex. Bitcoin on the latter was more expensive by circa $400 just a few days ago. Now it is cheaper by about $20 or around the same level.
What happened? Well, one USDT was worth $1.05 on Bitfinex. Now it is back to the usual $0.99. Trading volumes, moreover, fell as low as $160 million at the exchange. Now they’re nearing $1 billion.
A bank run following confirmation that $850 million had been seized from Bitfinex related bank accounts led to less demand for USDT and more demand for cryptos on Bitfinex.
The value of USDT thus fell by 5%, with seemingly little arbitrage opportunities as it is difficult to get fiat out of the exchange.
The Finex financiers then came up with LEO, a token that apparently raised $1 billion. So bringing in new funds and presumably streamlining prices.
Allowing Bitfinex in the process to withstand yet another crisis as the Iron Exchange continues to run and doth still stand.
Source (https://www.trustnodes.com/2019/05/14/bitfinex-premium-turns-into-discount)