USDT, also known as TEDA, occupies a very important position in virtual currency. Due to the relationship between national laws and regulations, the use of legal tenders to directly purchase digital currency restrictions, USDT is often used as an intermediary.
However, on April 26, it fell from $0.981 to $0.957, with a single day drop of 2.3%, indicating a lot of distrust of Tether (USDT issuer). In March 2019, Tether updated its terms from the original “100% US Treasury Reserve Guarantee” to “No longer 100% only guaranteed by the US Treasury Reserve”, representing USDT is no longer a 1:1 equivalent guarantee. Since then, Bitfinex has transferred $700 million in USDT directly from Tether, and there is simply no full dollar guarantee in the process.
Does iFinex cover a huge loss of $850 million?
New York State Attorney General Letitia James issued an allegation against iFinex Inc. (the parent company of Bitfinex and Tether) on April 25, and the prosecutor’s office indicated that iFinex “was covering a huge loss of $850 million.”
Why does Bitfinex automatically use the $850 million USDT? It is reported that Bitfinex will deposit $850 million worth of assets in Crypto Capital Trust for asset custody in the absence of a written contract, but since August last year, Crypto Capital claimed that funds were frozen by other governments and therefore refused to provide with The withdrawal of the service also refused to return the funds to the Bitfinix exchange, making Bitfinex not have enough liquidity to supply the investor with withdrawals. In order to remit funds to , up to now, 700 million US dollars have been successfully transferred, and Bitfinex has not disclosed the losses and Tether’s capital movements to , so it was investigated by US judicial authorities.
Bitfinex adds USDT to make up for the vulnerability
Bitfinex “appropriated” $850 million in customer and corporate funds was frozen, and Bitfinex made up for the loophole through the addition of USDT as a reserve through Tether. According to Omni data, Tether issued 300 million USDT at 02:41 (GMT+8) on April 25, because Bitfinex is currently underfunded. Therefore, if there is a crowd effect, the more people sell USDT, Bitfinex faces The greater the acceptance crisis, the USDT will face a collapse if there is no 1:1 dollar reserve behind the USDT, so Tether raises the price of by issuing additional USDT.
300 million USDT can manipulate hundreds of billions of BTC markets?
Some investors believe that the current market value of is about more than 90 billion US dollars, and the market value of 300 million USDT is about 0.3%, which should have little impact on the overall market. However, a new research report recently pointed out that 95% of ’s secondary market is a false transaction, and the real transaction is less than 5%. In other words, the actual transaction volume of is only about 4.5 billion, while the 300 million USDT actually accounts for The market value ratio is as high as 66.7%, so Tether can of course take advantage of the price of this operation .
5000>5600>5100>5300, this is a summary of the price trend of Futures (BITMEX) for the past two weeks.
In the past two weeks, most of the virtual currency markets are in a consolidation trend. The overall price range of the indexed futures (BITMEX) is about 5150~5350. In 4/23~4/24, there are attempts to break above 5600. But what followed was a long black strong correction (Figure 1).
Many investors see this long black K and think that the bullish trend has gone, but if you calm down and do the pressure point arrangement, you will find that the light blue line is the support point after 4/2 (Figure 2). In the short term The article is hard support, because this is the highest cost price for the big 4/2 blasters who bought . If it falls below, it will mean that he will have a big loss, so the big family will stick to this price again (4950). Then, seeing this uptrend line of yellow, in fact, deducting that long black, has been in a slowing trend since 4/2, but suffering from no strong , if more favorable appears, is likely to show signs of squirting.
In other currencies, the most vocal is USDT. Its parent company Tether is kicked out at 4/30. Currently only three-quarters of the stable currency supply is enough cash, but smart readers should find that this is long. Hemingming appeared in 4/26, how could it be 4/30? Is it a time for you to be a traveller? Actually not! It is obvious that this kind of thing has already been known 4/26 in advance, so USDT will Killing under the explosive volume, this long black will explain why the USDT is difficult to return to the USD1:1.
At this time, the clever readers found that this long black seems to be similar to the ’s killing. Is there any correlation between them?
The answer is the current price difference. The futures here refers to the XBT/USD perpetual contract of BITMEX, and the spot refers to the /USDT spot of . Due to the fall of USDT/USD, the spot /USDT (the denominator becomes smaller) rises in disguise, making During the period from 4/26 to 5/1, BITMEX’s futures and stocks have a reverse price difference of nearly 400 points, and there are many arbitrage spaces (theoretical price differences in many different currencies). Investors who are interested can go deeper into this area, but this arbitrage is often seen to be unattainable.
In the past two weeks, due to the rumors of the 4/2 market, there are mysterious buyers buying big bitcoins, which drove the overall market to soar by more than 20% in a short time. However, after 4/15 nights (the largest spot exchange) announced that it would be released under 4/22 BSV ( SV), the overall market showed significant selling pressure, especially the BSV was about 70.5 before the announcement. The yuan fell to less than 56 yuan, a drop of up to 20%.
The incident originated from BSV’s Australian scientist Craig Wright (nicknamed Aomoto, faketoshi) who claimed to be Nakamoto, but most people do not believe that he is Nakamoto. And CZ Zhao Changpeng, the chief executive of the currency security, issued a warning on Twitter recently. Aoben Satoshi is not a Satoshi Satoshi. If you say this again, the currency security will be removed from the BSV.
However, after 4/15 Coin announced that it was about to be removed from the BSV, there were successive agencies to make a resolution against the BSV: Kraken announced that it would no longer support the BSV on the 4/16 night after the user feedback, and the fire coin decided by Twitter vote depending on the user feedback. BSV is removed, and .com announces that it will no longer support BSV in the future. Etafang founder Vitalik also issued a tweet to support the removal; there are also organizations that are supporting the support: OK mine pool and Coingeek founder Calvin Ayre support BSV .
The remaining were also affected. After the release of the top five currencies, only the cash (BCH) of the predecessor of the BSV fork continued to rise. The other four currencies all experienced a 3–5% decline in a short period of time.
It is worth noting that Cash (BCH), a gain of up to 88% in the past two weeks as a winner in high market capitalization, is in sharp contrast to BSV. The rise in BCH is not only driven by the skyrocketing 4/2 , but also by the market’s optimistic view of the next fork.
We are in the micro-structure strategy, although the short-covering before the 4/15 event, missed the profit opportunity of the BSV event, but in the past two weeks, the winning rate is still 50%, relying on The excellent earning ratio is 1.6% in the past two weeks and the risk retracement (MDD) in the past two weeks is about 2.5%.
can be defined by their function and usage as belonging to one or more of several different categories. At the moment, these categories are more of a guideline rather than a concrete, universally accepted construct. Two government institutions seeking to change this are the US () and the (FINMA).
The is focused on comparing with securities and defining where the line between the two should be drawn for legal purposes. On the other hand, FINMA focuses on the economic function and purpose of the . Despite this difference, both groups have identified the same 3 key categories for all (but have noted that it is possible for a to belong to more than one at a time). The three of these are as follows:
- Payment Tokens
- 2. Utility Tokens
- 3. Asset Tokens
As the crypto market becomes populated by an increasingly diverse array of , it is becoming more important than ever to understand the main differences between these categories of in order to make better investment decisions.
Payment Tokens (FINMA) / Cryptocurrencies (SEC)
Payment or “transactional ” are simply a type of digital currency. Much like with fiat currencies such as US dollars or the Euro, this type of is explicitly used to purchase goods or services. However, unlike fiat currencies, no governments are tied to the creation of these .
FINMA defines these as :
“synonymous with and have no further functions or links to other development projects. may in some cases only develop the necessary functionality and become accepted as a means of payment over a period of time.”
The most popular payment on the market now are (), (LTC), and (XMR), just to name a few.
Utility Tokens
The creation of and smart contracts led to the birth of utility . Utility are tied to a particular platform and enables users to purchase goods or services from that specific network.
FINMA’s take on utility is as follows:
“ which are intended to provide digital access to an application or service.”
One of the most famous utility today is Filecoin (FIL). Last year, their ICO broke the record for the biggest ever, raising more than $250 million USD. To use Filecoin’s decentralized storage solution, a user must first pay a small sum of FIL . and like Filecoin, is how the processing of our service begins. BCNT is required to initiate smart contracts with investment advisors and thus allows users to participate in the .
Asset Tokens (FINMA) / Security Tokens (SEC)
In short, asset or security , are basically a digital representation of a physical asset. For example, an asset could be tied to or to precious metals such as gold and silver. It could also represent something like stocks or even intellectual property.
FINMA explains asset as:
“assets such as participations in real physical underlyings, companies, or earnings streams, or an entitlement to dividends or interest payments. In terms of their economic function, the are analogous to equities, bonds or derivatives.”
Compared with payment and utility , there are significantly less successful ICOs having security . Capital (Bcap), founded by Brock Pierce, Bart Stephens, and Bradford Stephens, is to provide a public offering for a security . As such, it is among the this year.
Published at Mon, 20 May 2019 05:09:40 +0000
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