Must-reads for October 15, 2018: Tether’s collapse may have just begun
Newsflash: Bitcoin Surges to $7,500 on Bitfinex Due to Tether Implosion, Real Price $6,700 (CCN) When we broke news that Tether’s former bank, Noble, is in financial trouble and that a large holder of tether had trouble dumping a few million of them, we were originally going to title it “Tether’s collapse may have just begun.” But we didn’t. We should’ve, though. Anyway, you’re seeing a premium in bitcoin versus tether on some tether-only exchanges. You have holders of tether trying to get out by trading them for bitcoin, pushing up the price of BTC on those exchanges. Simultaneously, it’s lowering the price of USDT. At some point, tether—which is supposed to be at par with the U.S. dollar—changed hands below 96 cents. This isn’t a good sign for either Tether or, let’s be honest here, bitcoin holders. Stay tuned… Is a Tether bank run underway? (The Block) TL;DR: Yes. Bitfinex Releases Statement on Fiat Deposits After Panic Causes Bitcoin-Tether Premium to Hit All-Time-High (CryptoGlobe) Tether, of course, is the sister company of the exchange Bitfinex (they try to hide it but, c’mon, no one is that naïve). Bitfinex is having difficulties process fiat customers because, they claim, “certain customers in the face of processing complications.” But as The Block points out, that complication is HSBC no longer serving as their fiat bank. Why Crypto Traders Are So Worried About Tether (Bloomberg) If you’re wondering why we keep prattling on about Tether, this quick primer should give you some insight. Judge rules bitcoin company not responsible for woman’s loss in scam (CBC) This is a heartbreaking story: An immigrant living in Charlottetown, PEI, was robbed of about C$62,500 from a bunch of phone scammers. They convinced her to go to a bitcoin ATM and pay them, telling her it was for back taxes. A court ruled that the company owning the ATM wasn’t responsible so the woman is out a small fortune. As the article reminds people, “Digital currency transactions are instant and non-reversible.” Ripple Has a Ton of Doubters. This Exec Is Trying to Change Their Minds (The Breaker) This is an interesting interview with our friend Cory Johnson, Ripple’s chief market strategist. The part a lot of folks are focusing on is this quote, “The White House in particular seems to be thinking about what it means to have 80 percent of bitcoin mining taking place in China and a majority of Ether mining taking place in China.” Another thing that’s interesting is his take on President Clinton, and, more importantly, what he has to say to the Ripple haters on Twitter.
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