The controversial and popular cryptocurrency exchange Bitfinex claims that running a crypto exchange platform is very lucrative. According to the …
The controversial and popular cryptocurrency exchange Bitfinex claims that running a crypto exchange platform is very lucrative. According to the company, iFinex Inc. the company behind the exchange and the stablecoin Tether (USDT), they registered a profit of $404 million last year.
In a recently released white paper, iFinex reported a $404 million profit in 2018 on $418.2 million in gross profit. At the same time, Bitfinex disclosed that it seeks to raise up to $1 billion through an Initial Exchange Offering (IEO). The intention is to be able to claim for $850 million that are frozen in bank accounts in Poland, Portugal, and the United States.
As reported by Bloomberg, New York’s attorney general has accused Bitfinex and Tether to cover-up $850 million in losses. This generated controversies in the market about the stability of the Tether stablecoin, the largest in the market.
Bitfinex has also announced that it is launching LEO, a digital currency that would allow users of the exchange to pay lower fees when they trade virtual currencies. Bitfinex will be using 95% of the recovered funds from government seizures to repurchase and also burn the tokens in one and a half year after the day of recovery.
The white paper explains that the firm has between 60 and 90 employees and that they registered expenses of $14 million just in 2018.
Bitfinex will have to work hard in order to recover the trust from clients, traders and the crypto market in general. Thus, this is expected to be a very difficult task for the company.
“The fact the Binance news was shrugged off was telling. Add in the Bitfinex debacle and you can see that the sentiment really is rising,” Greenspan …
If you haven’t heard, bitcoin is back. The digital currency on Thursday booked its eighth winning session in the past 10 and is on track to log four successive winning months — this after recording six losing months in a row, an unflattering record it had never previously achieved.
The bitcoin BTCUSD, +4.87% rally is nearing 100% off its December 2018 low at $3,200, and year-to-date the cryptocurrency has added 70%.
So what’s behind the rally bitcoin? Here are four potential answers:
One thing the bitcoin rally has done is bust through some closely watched technical levels. Whether it’s the resistance at $4,000, the psychological $5,000 mark or some key momentum indicators, the technical outlook has flipped from lower highs to higher lows.
“Bitcoin’s long-term technical profiles continue to point to a new up cycle,” wrote chart watcher Rob Sluymer of Fundstrat Global Advisors.
“With bitcoin now back to a resistance band near $6,000, similar to where it was in Q2 2015, a pullback would not be surprising. However, rather than sell or attempt to micromanage bitcoin exposure, we would strongly encourage investors to remain focused on the longer-term bottoming profile developing,” he said.
Moreover, bitcoin broke above closely observed 200-day moving average, and on April 23, the digital asset scored a golden cross, where the 50-day moving average crosses above the 200-day moving average — underlining its upside momentum.
Arguably, bitcoin’s biggest battle is getting people to use it. Whether as a store of value or a medium of exchange, digital assets have struggled to garner attention, especially from institutional investors.
But, according to a recent Fidelity survey, this is slowly changing. The Boston-based asset manager said nearly half of institutional investors believe digital assets can play a role in their portfolio, while 22% already own some form of digital currency.
“We’ve been seeing steady growth and adoption in the industry, and prices are starting to get in line with the usage of bitcoin,” said Mati Greenspan, senior market analyst at eToro.
Bitcoin, for the first time in a while, is shrugging off bad news. The industry, which is prone to negative headlines, including exchange heists and malfunctions, or the use of cryptos for illicit activity, has been back in the headlines.
“The fact the Binance news was shrugged off was telling. Add in the Bitfinex debacle and you can see that the sentiment really is rising,” Greenspan added.
Or maybe people are trading in a popular haven asset for a slice of digital currency.
On May 1, Grayscale Investments, a subsidiary of Digital Currency Group, kicked off a provocative ad campaign to promote bitcoin as a better alternative to gold. The campaign, which employed the social-media hashtag #DropGold, promoted bitcoin as a better store of value, arguing it’s more secure and borderless.
And, it turns out the gold bugs were watching. A day after the campaign launched, the World Gold Council rolled out another explanation as to why cryptocurrencies are no substitute to gold. “Cryptocurrencies extreme daily and intraday volatility disrupts its use as a medium of exchange and discourages strategic investments,” wrote Adam Perlaky, manager of investment research at the World Gold Council.
But, maybe the ad got some investors reassessing their gold investments. On May 7, six days after the ad kicked off, the Grayscale Bitcoin Trust GBTC, +5.41% topped the list of the most actively traded stock on OTC Market Group.
As always, there’s myriad theories behind each and every bitcoin move, but after a torrid 18 months for bitcoin bulls, it doesn’t really matter why it’s up. And on Friday it was up again, rising 2.6% to $6,290.
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Aaron Hankin is a MarketWatch reporter in New York who covers cryptocurrency and financial markets.
On 9th May 2019, Jameson Loop had published an op-ed on Bitcoin Magazine where he discredited Craig Wright’s claim of being Satoshi Nakamoto.
On 9th May 2019, Jameson Loop had published an op-ed on Bitcoin Magazine where he discredited Craig Wright’s claim of being Satoshi Nakamoto. Under the legal counsel of Craig Wright, Jameson Loop’s article has been geo-blocked in the UK and Australia.
Following the Geoblocking of the article, a number of people joined together and copy pasted the article on other websites to ensure people in the UK and Australia can read the article. Riccardo Spagni, the lead developer of the privacy-focused cryptocurrency, too created several copies of the article, so people can read it.
Jameson Loop, the lead developer at CASA, wrote an op-ed in which he points out flaws in Craig Wright’s claim that he is Satoshi Nakamoto. He uses past actions of Satoshi Nakamoto and compares them with statements Craig Wright has said publicly.
Some of the points raised by Jameson Loop are,
Satoshi Nakamoto always mentioned Bitcoin as “Bitcoin” while Craig Wright in his early writings from 2011 mentioned Bitcoin as “Bit Coin”.
Wright said that he never called Bitcoin as “cryptocurrency” while Satoshi Nakamoto did on many occasions.
Craig Wright publicly said “I am a lawyer and this [financial law] is my area of specialty,” while the real Satoshi Nakamoto in 2010 said “I am not a lawyer and I can’t possibly answer that”
Embattled Bitfinex has announced the integration of Blockstream’s Bitcoin sidechain, the Liquid Network. The upgrade is already seeing users impressed with faster and more private transactions.
Bitcoin Liquid Integrated At Bitfinex
One of the biggest cryptocurrency exchanges in the world, Bitfinex, has announced the integration of Blockstream’s Liquid Network.
The Liquid Network is an inter-exchange settlement network which links together cryptocurrency exchanges and institutions in order to enable quicker Bitcoin transactions, as well as the issuance of digital assets.
According to the official announcement, the integration will allow for tighter exchange spreads, faster trading, as well as improved confidentiality.
Speaking on the matter was Paolo Ardoino, CTO at Bitfinex, who outlined:
Issuing Bitcoin, stablecoins, and various other digital assets under one blockchain platform makes a lot of sense. […] It reduces the integration burden for an exchange like ourselves, and traders can manage all their assets from a single wallet application. We’re excited to be active on the Liquid Network, and we’re looking forward to watching it develop.
Results Are Already Showing
The integration of Liquid is already proving to be worthwhile, according to derivatives trader Federico (@Federico_Xmas), who noted:
Just tried transferring BTC from TheRockTrading to Bitfinex using Blockstream Liquid, the transaction was executed and confirmed in less than 5 minutes, and best of all the amount is confidential to outside observers. Congrats to both exchanges and all other people involved.
Just tried transferring BTC from @TheRockTrading to @bitfinex using @Blockstream Liquid, the transaction was executed and confirmed in less than 5 minutes, and best of all the amount is confidential to outside observers. Congrats to both exchanges and all other people involved 👏
Unlike Bitcoin’s public blockchain, transactions carried out on liquid are private by default. This means that the amounts, as well as the types of assets transacted, are hidden from third parties.
Liquid Network Gaining Traction
Launched in October 2018, the Liquid Network is quickly gaining traction all throughout the space. According to a recent blog post, the network has added 14 new members, including Bluefire Capital, Huobi, OpenNode, Gate.io, and others.
Moreover, the company has revealed that further integrations are also going to go live in the coming weeks. Perhaps one of the more interesting upcoming developments is the fact that BitMEX is also working with Blockstream to support L-BTC deposits and withdrawals.
Additionally, Tether (USDT), and Stably (USDS) have also revealed plans to launch on Liquid.
Back in March, Blockstream also released a user-geared wallet for its Liquid sidechain asset called Liquid Bitcoin (L-BTC).
Bitfinex meanwhile was recently served with a court order by the New York Attorney General, alleging a cover-up of $850 million in losses. While no charges are being sought at the time, the exchange says it’ll fight the ‘false assertions.’
What do you think of Bitfinex integrating Liquid? Don’t hesitate to let us know in the comments below!
As covered, Bitfinex was accused by New York’s Attorney General of participating in a cover-up to hide $850 million in losses. The allegations revived …
Ethereum co-founder Joseph Lubin, who’s also the founder and CEO of cryptocurrency-related software company ConsenSys, has recently stated he believes the Bitfinex, Tether situation seems to be a “really big mess” that “probably won’t get better.”
Speaking to Bloomberg at the sidelines of the Fluidity Summit conference in New York, Lubin revealed he thinks some good may come out of it, as other stablecoins may gain traction. He was quoted as saying:
Tether is somewhat important to our ecosystem because it’s used by different institutions to effect more fluid trading. There are other price-stable tokens out there — many others — and I think they’re going to gain traction because of this. I think that will be a really good thing.
As covered, Bitfinex was accused by New York’s Attorney General of participating in a cover-up to hide $850 million in losses. The allegations revived concerns over Tether’s backing, as it was supposed to have 1 USD in reserve for every USDT token in circulation.
Bitfinex reportedly lost the $850 million as a third-party payment processor claims the funds were seized by governments throughout the world. To fix the situation it’s set to hold a $1 billion initial exchange offering (IEO) that’s said to already have lined up the $1 billion in commitments.
Regarding concerns Tether’s USDT tokens have been used to manipulate the price of bitcoin – something the US Department of Justice is investigating – Lubin noted that “all prices on the planet are being manipulated.” He added:
Any time that well-resourced actors can get in there and do something, you have to expect them to do that. So we need to build better system.
Lubin added that the “status of things is great,” as last year’s price correction aw the system grow “enormously” as those who were “pulled in by excitement riven by price growth” stayed in the crypto space and have been helping build it.