Rumor mill: Has Bitfinex financial problems? “Bitcoin Premium” increases


One of the oldest and perhaps most controversial crypto-currency exchanges, Bitfinex is currently the case for Bitcoin, a Premium of up to 2 per cent, in comparison to other crypto-currency exchanges to act in particular to all those that do not Tether. Over the past few days, Bitcoin’s Premium rose further. In the same period, the otherwise stable Tether (USDT) recorded a decline in prices to us $ 0.98. What are the reasons for this and what Impact could this have?

During the Bitcoin at the time of writing on Bitfinex for 6.380,90 USD is trading, BitMEX only 6.237,00 USD, in the case of Coinbase Per 6.243,92 USD and Binance 6.324,32 USD. According to the research team from BitMEX, the “Bitcoin-a Premium was” on Bitfinex temporarily in the case of almost 1.75% and will continue to rise. Stock exchanges, which are also strong with a Tether act (for example, Binance), due to the price drop of the Tether to 0.98 USD also approximately a 1 % Premium.

The Bitcoin price premium on Bitfinex continues to increase compared to other exchanges. The premium is now almost 1.75%

— BitMEX Research (@BitMEXResearch) October 12, 2018

Rumor mill: Bitfinex and Tether have financial problems

As we in the past reported, the relations between Bitfinxex and Tether (USDT) has been a persistent point of discussion in the crypto community. While at the latest since the Panama Papers clear that Bitfinex and Tether of one and the same Person. Dispute for many critics remains, however, whether the “Stablecoin” Tether in a ratio of 1-to-1 with reserves in the US is hedged in dollars in a Bank account of the Tether Limited. In addition, there was in the past few months, always votes, and also studies that claimed that Tether manipulated by the pressure of its USDT “out of Nothing” the price of Bitcoin significantly.

The rumors came before the days of back to the Boil, Bitfinex all users of the stock market asked to buy important crypto-currencies such as Bitcoin and Ethereum instead of Fiat against USDT or to sell. This Fiat deposits were suspended for a week on the stock market. The background is that Bitfinex has lost its primary banking partner. In principle, this would be not unusual. However, Bitfinex has lost in the past already several times, its primary banking partner. Also never took place Audit, which proves whether and where (which Bank), the company kept behind Tether the 2 billion US-Dollar reserve.

After this day it became known that the Noble Bank from Puerto Rico and left the business with Bitfinex and Tether fall, the price premium for Bitcoin at Bitfinex. The Noble Bank, whose founder Brock Pierce founded also Realcoin (later Tether) and later on to the Tether Limited sold, was a long-standing Partner of Bitfinex. As Larry Cermak initially reported, Bitfinex first of all a business account at the HSBC, the seventh largest Bank in the world. How Cermak explained later, but also did not materialize the partnership. This fueled rumors about the financial insolvency of Bitfinex. Although Bitfinex stated that it “expects that the Situation within a week normalizes”. However, the rumors of the insolvency of Bitfinex and Tether seem to worry the market currently, since a Crash could affect the market for a long time.

The Bitcoin Premium could be an indication that traders and investors try to use your crypto currencies on other stock exchanges “to save”, while Bitfinex with lower liquidity to fight, and at the same time a new banking partner effort. At the same time, the rising Premium suggests a growing distrust of Bitfinex and Tether.

Other reasons for the Bitcoin Premium

In addition to the rumors, there are also voices which claim that investors will simply lose interest in the platform and it is only a false alarm. Traders could go to other, audited, and regulated Stablecoins, such as Gemini USD and Pax to switch. In terms of the price drop of USDT dealer could also sell your Tether, to buy crypto-currencies.

As always, it is important to keep calm. The rumors of Bitfinex are not new. Fluctuations in the price of Tether (USDT), there was also already in the past.


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