Bitfinex Exchange Claims It Is Very Lucrative To Operate a Cryptocurrency Exchange

The controversial and popular cryptocurrency exchange Bitfinex claims that running a crypto exchange platform is very lucrative. According to the …
Bitfinex-Exchange-Claims-It-Is-Very-Lucrative-To-Operate-a-Cryptocurrency-ExchangeBitfinex-Exchange-Claims-It-Is-Very-Lucrative-To-Operate-a-Cryptocurrency-Exchange

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.

Bitfinex Claims Exchanges Are Very Profitable

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.

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Signs Of Trust? BitFinex Bitcoin Price Premium Shrinks to 1.5% As BTC Surges to $6300

However, throughout the last month, this difference became more and more visible when looking at Bitcoin price on Bitfinex and on other exchanges.

Historically, there has always been a slight difference in the trading price of Bitcoin on various exchanges. However, throughout the last month, this difference became more and more visible when looking at Bitcoin price on Bitfinex and on other exchanges. Following the latest Bitcoin leg up, nevertheless, this difference is now shrinking away.

Bitfinex Bitcoin Premium Down to About 1.5 Percent

As Cryptopotato reported earlier today, Bitcoin skyrocketed in price, reaching $6,300 throughout the day and is up over $1,000 in the last 7 days alone.

Following the latest surge, we can also see that the premium for buying Bitcoin on popular cryptocurrency exchange Bitfinex is shrinking and is already only around 1.5 percent.

BitFinex Vs. Bitstamp

For comparison, the premium was even high as 6% just two weeks ago after the cryptocurrency exchange was served with a court order from the New York Attorney General, alleging a cover-up of $850 million loss.

As seen on the chart above, after April 26th, there was a serious discrepancy between the price of Bitcoin on Bitfinex and on other major exchanges.

Perhaps one of the best explanations to this was the fact that people were buying Bitcoin as a means of getting out of the exchange following the turmoil after the NYAG court order. In other words, it’s easier for people to buy and withdraw Bitcoin compared to other currencies, hence driving its price higher.

Why Is The Premium Shrinking?

There can’t be a one-off answer to that question and there certainly are numerous reasons for it. First off, it’s only logical that the newfound price volatility which caused Bitcoin to surge over the past few days will eventually even up its cost throughout different exchanges because the increasing demand across the board is weighing in.

BitFinex Reports On Over $400M Gross Profits

On another note, it could also be the fact that people might feel more confident in Bitfinex and don’t urge to leave the exchange. Just yesterday, May 9th, Bloomberg reported that Bitfinex has managed to net a profit of $404 million on their $418.2 million gross profit, which suggests a 97 percent net profit margin, which is somewhat impressive, if true.

In any case, it’s worth noting that Bitcoin is performing splendidly throughout the entire year, almost doubling up in price. This has caused many, including prominent investor Mike Novogratz, to believe that we are already seeing 2019’s bull run.

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SEC to Consider New Bitcoin and Ethereum Exchange-Traded Fund Application

News. United States regulator, the Securities and Exchange Commission (SEC), is reviewing a new application for a cryptocurrency exchange-traded …

United States regulator, the Securities and Exchange Commission (SEC), is reviewing a new application for a cryptocurrency exchange-traded fund (ETF), documents released on May 9 show.

The product comes courtesy of Crescent Crypto Index Services, a subsidiary of benchmarking and passive index investing firm Crescent Crypto Asset Management.

It would include a portfolio of both bitcoin (BTC) and ether (ETH), and be active on the New York Stock Exchange (NYSE) under the “XBET” ticker.

“XBET is an exchange traded fund. This means that most investors who decide to buy or sell shares of XBET place their trade orders through their brokers and may incur customary brokerage commissions and charges,” the filing confirms. It continues:

“Shares of XBET are expected to trade on the NYSE Arca under the ticker symbol ‘XBET’ and will be bought and sold throughout the trading day at bid and ask prices like other publicly traded securities.”

As Cointelegraph continues to report, the SEC has yet to approve any form of cryptocurrency ETF for the U.S. market.

Concerns over compliance mean that rejections have come frequently since the first bid to launch the product in March 2017, with delays contributing to the already slow progress.

At the same time, regulators themselves have hinted they are confident that at some point in the future, an ETF will satisfy all the necessary requirements, a view echoed by industry figures.

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Luxembourg Bitstamp appoints head of US operations

Luxembourg-based cryptocurrency exchange Bitstamp – the largest in Europe – has appointed a head of US operations after it was recently granted …
Hunter Merghart will lead the opening of Bitstamp’s New York office

Photo: Shutterstock

Luxembourg-based cryptocurrency exchange Bitstamp – the largest in Europe – has appointed a head of US operations after it was recently granted an American licence.

Hunter Merghart, who previously worked at Coinbase, will lead the opening of Bitstamp’s New York office and will work to expand the company across the US.

In 2016 Bitstamp became the first fully-licenced bitcoin exchange in Europe, after the Luxembourg government granted the company a licence as a fully regulated payment institution.

Last year it signed an acquisition deal with NXMH, the European investment arm of South Korean gaming giant NXC.


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Emercoin (EMC) Market Capitalization Reaches $9.90 Million

One Emercoin coin can currently be bought for about $0.23 or 0.00003615 BTC on cryptocurrency exchanges including Bittrex, Tux Exchange, …

Emercoin logoEmercoin (CURRENCY:EMC) traded down 5.4% against the dollar during the 24 hour period ending at 0:00 AM ET on May 9th. In the last seven days, Emercoin has traded 19.2% lower against the dollar. One Emercoin coin can currently be bought for about $0.23 or 0.00003615 BTC on cryptocurrency exchanges including Bittrex, Tux Exchange, Cryptopia and HitBTC. Emercoin has a total market cap of $9.90 million and $76,601.00 worth of Emercoin was traded on exchanges in the last 24 hours.

Here’s how similar cryptocurrencies have performed in the last 24 hours:

  • BitcoinDark (BTCD) traded flat against the dollar and now trades at $16.23 or 0.00246929 BTC.
  • Experience Points (XP) traded 25.7% higher against the dollar and now trades at $0.0000 or 0.00000000 BTC.
  • Internet of People (IOP) traded down 1.5% against the dollar and now trades at $0.0858 or 0.00001369 BTC.
  • Sprouts (SPRTS) traded down 1.3% against the dollar and now trades at $0.0000 or 0.00000000 BTC.
  • MAZA (MAZA) traded flat against the dollar and now trades at $0.0003 or 0.00000005 BTC.
  • BitTokens (BXT) traded 0.2% higher against the dollar and now trades at $0.53 or 0.00007883 BTC.
  • Neutron (NTRN) traded 20.1% lower against the dollar and now trades at $0.0063 or 0.00000101 BTC.
  • PX (PX) traded flat against the dollar and now trades at $0.0010 or 0.00000015 BTC.
  • Universal Currency (UNIT) traded flat against the dollar and now trades at $0.0063 or 0.00000154 BTC.
  • Breakout (BRK) traded flat against the dollar and now trades at $0.0052 or 0.00000099 BTC.

Emercoin Coin Profile

Emercoin is a PoW/PoS coin that uses the SHA-256 hashing algorithm. Its genesis date was December 8th, 2013. Emercoin’s total supply is 43,814,900 coins. Emercoin’s official Twitter account is @EmerCoin_EMC. Emercoin’s official website is emercoin.com. Emercoin’s official message board is emercointalk.org. The Reddit community for Emercoin is /r/EmerCoin and the currency’s Github account can be viewed here.

Buying and Selling Emercoin

Emercoin can be bought or sold on the following cryptocurrency exchanges: Tux Exchange, Crex24, Bittrex, CoinExchange, LiteBit.eu, Livecoin, HitBTC, Cryptopia, Upbit and xBTCe. It is usually not possible to buy alternative cryptocurrencies such as Emercoin directly using U.S. dollars. Investors seeking to trade Emercoin should first buy Bitcoin or Ethereum using an exchange that deals in U.S. dollars such as Changelly, Gemini or GDAX. Investors can then use their newly-acquired Bitcoin or Ethereum to buy Emercoin using one of the aforementioned exchanges.

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