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USDT tokens are now fully secured by Tether reserves. The company announced this in a publication that serves as a response to a study on the manipulation of the cryptocurrency market by professors John M. Griffin and Amin Shams.

Recall that Griffin and Shamsi updated the 2018 study. According to it the Tether cryptocurrency was used to manipulate the Bitcoin exchange rate. The authors also wrote that for these purposes, USDT tokens were issued in large volumes. therefore experts concluded, that USDT is not secured by the US dollar.

In an updated version of the study, the authors argue that there is only one major investor behind the manipulation of the Bitcoin exchange rate. According to version, this player “had an extremely large impact on the price of Bitcoin”.

 Stuart Hoegner, the chief legal adviser to the Bitfinex cryptocurrency exchange and Tether Limited, described the study as “fundamentally wrong.” The cryptocurrency community has also criticized the work of experts. Morgan Creek Digital co-founder Anthony Popliano wrote that he considers this study a lie.

At the same time, Tether is involved in market manipulations, but the question of whether the USDT is fully secured by the US dollar has long been a matter of debate. The company promised to conduct an internal audit of its reserve, but instead, it severed relations with the audit firm Friedman LLP, which conducted the audit.

Last year, Tether Limited became a partner of the Bahamian Deltec Bank & Trust. According to an official statement, the bank accepted the company as a permanent resident, while conducting a full analysis of its activities. Deltec experts then concluded that each USDT token is secured by a US dollar. As proof of this, Tether Limited shared a copy of a letter from Deltec with reporters.

Only in the spring of 2019, when the office of the New York State Attorney General accused the Bitfinex cryptocurrency exchange of concealing losses of a total of $ 850 million from Tether, the company announced that USDT could not be 100% backed by fiat currency.

At first, Tether changed the text on its official website. Where it was argued that “every token is always provided with traditional currency stored in reserves, in a one-to-one ratio”, it is now written that stablecoin is backed up with reserves that “include currencies and cash equivalents, as well as, from time to time, other assets and upcoming income from borrowers. ”

tether website

A little later, Hegner personally confirmed that USDT is not 100% secured by the US dollar. The legal adviser gave written testimony in which he admitted that as of April 30, 2019, Tether had about $ 2.1 billion, which means that stablecoin is provided with approximately 74%.

Tether now states that all Tether tokens are fully backed up and issued by market demand. According to the company’s data, it now owns assets totaling more than $ 4.6 billion, including $ 4.56 billion in US dollars, $ 44 million in euros and $ 3.3 million in Chinese yuan. In an email that Hegner responded to a Coindesk request, information is cited from the Tether website.

Hegner emphasized that “the number 74%” of his testimony refers to “specific assets at that point in time, and not to total reserves”.

Regarding the remainder of the article, Tether said in a statement that the authors demonstrate a fundamental misunderstanding of the cryptocurrency market. Also, the company noted that experts themselves acknowledge that the trading models they observe may well correspond to market operations with Tether, and not with the issue of new stablecoins

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admin , 2019-11-09 07:02:58 ,

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NewsBlock © 2019 - 2020. All rights reserved.


While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock


Nick Chong , 2019-11-10 12:00:38

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