Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Stable Coins Forum => USDT Forum => Topic started by: Btceth01 on January 21, 2021, 03:53:33 PM
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Many people expected that Tether’s legal affairs might have an impact on Bitcoin’s price these days.
By 15 January 2021, iFinex was supposed to submit documentation regarding the case involving Tether’s holding company against New York Attorney General Letitia James.
First of all, it must be said that this case does not directly concern USDt or its actual financial hedging, but a matter related to a shortfall of 850 million dollars in Bitfinex’s accounts, which according to the prosecution was covered by a loan from Tether.
source link (https://cryptonews.net/453973/?utm_source=CryptoNews&utm_medium=app&utm_campaign=shared)
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Indeed, USDT is a coin that can stabilize the price of Bitcoin and if there is an effect for Bitcoin, don't let USDT lose its price.
I can't say much if USDT will lose its price, for example from 1 USDT turns into a price of 0.1 USD and this is a disaster for those who have USDT.
But if the price is dumped like that then the other Fiats could buy even more from various USDT markets and this is dangerous.
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850,000,000 USD not on Bitfinex account?
Whoa, looks like this is a big problem Tether will face.
Bitfinex is the creator of the USDT or Tether token, while the real money circulating on Bitfinex is experiencing a deficiency of around 850,000,000 USD.
Is this the ridiculous thing Bitfinex did to self-indulge so it wanted to manipulate the market?
Or maybe Bitfinex has been tricking the public by creating Tether without any real USD collateral?
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850,000,000 USD not on Bitfinex account?
Whoa, looks like this is a big problem Tether will face.
Bitfinex is the creator of the USDT or Tether token, while the real money circulating on Bitfinex is experiencing a deficiency of around 850,000,000 USD.
Is this the ridiculous thing Bitfinex did to self-indulge so it wanted to manipulate the market?
Or maybe Bitfinex has been tricking the public by creating Tether without any real USD collateral?
It looks like Bitfinex and its stablecoin USDT are about to start in serious trouble. The revealed lack of $ 850 million on the account of this exchange could greatly affect the image of this stablecoin. A stablecoin cannot fall in price, but it can be bought significantly less.
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In recent years, Tether issuances have increased significantly, which correlated broadly with a significant rise in Bitcoin valuation. This paper examines the impact of cryptocurrency issuances on subsequent cryptocurrency returns. It is argued that as Tether is the undisputed ‘stable coin’ the minting of new Tether acts similarly to monetary expansion in cryptocurrency markets, inflating the prices of Bitcoin. We construct a VAR model and show contrary to investor expectations, Tether issuances do not impact subsequent Bitcoin returns, however, they do impact traded volumes. We also document an increase in Tether trading following a subsequent decrease in Bitcoin returns.
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A stablecoin cannot fall in price, but it can be bought significantly less.
If this happens, it will be very painful for those who have stable coins at the time the price has not dumped. And this shouldn't happen to USDT coins .
There is also an advantage for those who have other cryptocurrencies that are ready to be exchanged for USDT at dumping and later that will make the USDT price go up again and become a strange advantage for those who buy low for USDT. Hmmmppp
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Many people expected that Tether’s legal affairs might have an impact on Bitcoin’s price these days.
By 15 January 2021, iFinex was supposed to submit documentation regarding the case involving Tether’s holding company against New York Attorney General Letitia James.
First of all, it must be said that this case does not directly concern USDt or its actual financial hedging, but a matter related to a shortfall of 850 million dollars in Bitfinex’s accounts, which according to the prosecution was covered by a loan from Tether.
source link (https://cryptonews.net/453973/?utm_source=CryptoNews&utm_medium=app&utm_campaign=shared)
January 15, they received one months preparation for their issues to be solved. So, that didn't impact on crypto market but they have to prove their issue as legal. I hope they will do otherwise it will put again negative impact like a rumor in the past.
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Today, it is very profitable to invest in Bitcoin and Ethereum, and once these cryptocurrencies reach your new ATH, you will have to fix your profit with USDT, and then the question arises, how stable the moment of USDT can guarantee the safety of my capital. I believe that this question interests me more than the impact of Tether on bitcoin.
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The current stable coins are the only ones moving forward. Because the price of unique coins keeps going down but the price of stable coins is absolutely right because whatever you invest will remain the same. So although Bitcoin goes further than that, but one of the most widely known coins is the Tether Coin.
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Today, it is very profitable to invest in Bitcoin and Ethereum, and once these cryptocurrencies reach your new ATH, you will have to fix your profit with USDT, and then the question arises, how stable the moment of USDT can guarantee the safety of my capital. I believe that this question interests me more than the impact of Tether on bitcoin.
Of course, tether is the most popular and mainstream stablecoin. Although problems with tether should not directly affect the price of bitcoin, however, we do not need difficulties with it during a period of rising prices in the cryptocurrency market. In a week, when Bitfinex expires the deadline for submitting its explanations regarding the identified lack of collateral, we will see how difficult this issue is.
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In my opinion, USDT & stable coin really has an effect on the price of BTC & the entire crypto market. It is no coincidence that traders regularly check the number of stable coins in the market for an effective trading strategy.
During the bullrun period, the number of stable coins on the market is seen as an asset ready to move into BTC & other tokens. During bearsleep, stable coin represents the trend to exit the crypto market.