Notes 9/21: FOMC and Bitcoin Price, Retail CBDCs, and Tether In Trouble Again

It was unthinkable some years ago. Fed Day – a day when the Federal Reserve Open Markets Committee (FOMC) meets – is fast becoming an important ritual in bitcoin’s calendar because it determines the cryptocurrency’s future price trajectory. Cryptocurrency markets are poised in anticipation of Fed Chairman Jerome Powell’s announcement his afternoon regarding interest rate hikes. Last month, Chairman Powell indicated that consumers should be … Continue reading Notes 9/21: FOMC and Bitcoin Price, Retail CBDCs, and Tether In Trouble Again

Class Action Lawsuit Filed Against Bitfinex and Tether for Fueling “Largest Bubble in Human History”

Bitfinex and Tether, already embroiled in a case with the New York Attorney General, were hit by a class-action lawsuit this morning. The suit was filed by Roche Freedman LLP, a law firm that successfully won a case against supposed Bitcoin creator Craig Wright recently. Their current lawsuit alleges that Bitfinex and Tether concocted a scheme that was “part-fraud, part-pump-and-dump, and part-money laundering” to “defraud … Continue reading Class Action Lawsuit Filed Against Bitfinex and Tether for Fueling “Largest Bubble in Human History”

Tether Plans To Launch New Stablecoin Backed By Offshore Chinese Yuan

Tether is planning to launch a stablecoin pegged to offshore Chinese yuan. According to a Coindesk report, the new stablecoin was announced by Zhao Deng, Bitfinex shareholder and OTC trader, on China’s biggest messaging platform WeChat. He also told the publication that the stablecoin’s reserves would be held in Belgium. Deng stated that his peer-to-peer trading platform RenrenBit would support trading and deposits for the … Continue reading Tether Plans To Launch New Stablecoin Backed By Offshore Chinese Yuan

Stablecoin Tether May Have Adequate Backups Of US Dollar: Bloomberg

One of the biggest mysteries in crypto-universe relates to Tether’s bank balance. The cryptoasset has been in the eye of a storm regarding its backup reserves of the US dollar.  But a new report by Bloomberg may be proof that the stablecoin may be adequately capitalized after all. “Bank statements reviewed by Bloomberg News suggest those fears (of inadequate reserves) be unfounded,” the report states. … Continue reading Stablecoin Tether May Have Adequate Backups Of US Dollar: Bloomberg

Why Did Tether’s Price Crash Over The Weekend?

The price for Tether, the dollar-pegged stablecoin at Bitfinex, crashed over the weekend as investors fearful about its reserve deposits, sold the coin. The extent of damage to Tether’s price varied across various cryptocurrency exchanges from five percent to more than thirteen percent. According to some reports, Tether’s price dropped to $0.85 at Kraken, a prominent exchange. (Since Tether is a stablecoin, its price typically … Continue reading Why Did Tether’s Price Crash Over The Weekend?

How Do Investors Profit From Stablecoins?

Even as a swirl of doubts engulf the utility of Tether, the numbers of stablecoins to prop up cryptocurrency markets has multiplied dramatically this year. The stablecoins list includes the likes of Basecoin, MakerDAO, and Havven, all of which have received funding from marquee names in the venture capital industry. The Winklevoss brothers, who are pioneers in cryptocurrency markets, also recently launched the Gemini dollar, … Continue reading How Do Investors Profit From Stablecoins?