Tether’s burning of the 400 million USDT tokens could lead to a massive downtrend for the bitcoin price according to the twitter user Whale Alert as we are reading today in our altcoin news.
Many of the investors are now fearing that the token burn could crash the price of the number one cryptocurrency since just yesterday, the crypto community found out that the controversial cryptocurrency Tether will burn $400 million worth of USDT. The amount of burnt coins is relatively considerable since the total supply of USDT Is 4.1 billion currently. The tweet sparked fears that the move by tether could affect the Bitcoin price since there is a correlation between the USDT supply change and the bitcoin price movements. More of the USDT coins show there could be an increase in liquidity which usually fuels the bitcoin trading volume and acts as a bullish signal. It is important for the markets not to panic. Tether is simply moving out parts of its coin from Omni to Ethereum.
Tether’s burning of the 400 million USDT tokens have the ability to slash the Bitcoin price but the move is part of a swap to Ethereum. Interestingly, the Twitter user mentioned already that this move is a part of a swap and the corresponding burn on Omni still hasn’t happened. However, when the burn took place yesterday, Whale Alert didn’t make the connection and explain why this happened. Tether confirmed that the 400 million USDT burnings were a part of the swap. The problem is that Tether plays with the minting and burning hundreds of tokens just like that and this could seriously affect the bitcoin price.
As reported previously in some of the best cryptocurrency news sites, Tether Limited expands and is now cashing in on the sentiment because of the dangers thanks to the gloomy economy which is led by the ongoing US-China trade war which sends the investors choosing safe-haven assets such as Bitcoin. CNHT aims to remove the necessity of exchanging yuan each time when there is a need to purchase or sell bitcoins. It could also provide liquidity between the two currencies because the investors trust Tether for maintaining the 1:1 peg to yuan.
Lawsuit Against Tether And Bitfinex: NY Firm Accuses Them Of Market Manipulation
“Because the market believed the lie that one USDT equaled one U.S. dollar, Bitfinex and Tether had the power to, and did, manipulate the market on an unprecedented scale to profit from boom-and-bust cycles they created.”The lawsuit against Tether and Bitfinex is in the Tether crypto news and comes two days after both Tether and Bitfinex published statements confirming that they had become aware of an unreleased paper which was “falsely positing that Tether issuances are responsible for manipulating the cryptocurrency market.”Alleging that their paper contained "baseless accusations," the lawsuit against Tether and Bitfinex said that they might vigorously defend themselves if lawyers use the source to launch a new lawsuit.Meanwhile, the price of Tether is not an issue because as a stablecoin, it is pegged to the US dollar. Currently, USDT is at $1.01 and its daily volume is at $22.13 billion which is a solid indicator that a new increase (and influx of money) might be coming on the market.
Tether Expects Another Lawsuit Based On Market Manipulation
Tether Limited Expands Its List Of Stablecoins By Adding Digital Yuan
“CNH represents a further expansion of Tether’s capabilities in facilitating the digital use of traditional currencies, such as US dollar (USDT) and euro (EURT).’’Tether attached a new smart contract address after the announcement which probably shows the total number of the issued CNHT tokens. Despite the promises, CNHT ensures to become a part of the ballooning Tether controversy. Back in 2018, The New York Attorney Journal filed a complaint against Tether Limited and its associate BitFinex for reportedly covering up losses of $850 million by borrowing the dollar reserves. The lawyer of Tether Limited later admitted that the client misbalanced the dollar peg after the $850 million handlings to BitFinex. The controversy increased further after Tether Limited stated that they have no contractual right and other legal claims so USDT will be redeemed or exchanged for dollars. As per the latest cryptocurrency news reports, Tether’s decisions could hamper the entire industry in China given the harsh regulations that can stop CNHT’s growth.
Bitfinex Shareholder Reveals Tether’s Plans About Commodity-Backed Stablecoin
“Tether is fully backed by reserves, out of 4 billion existing USDT about 3.35 billion are now in securities and 650 million are being lent to Bitfinex. Bitfinex has been raising 1 billion with it's LEO token IEO and could easily pay back Tether any time (as a matter of fact it already paid 100 million last month)," he revealed.The Bitfinex shareholder also added that “even if you don't calculate this 650 million as reserves the total amount backed by USD is 83.75% (3,350/4000) and not 72% as fake news are reporting.”He claimed that the only reason Bitfinex has not yet closed its loan with Tether is the fact that the company first wants to recover those of its funds that have been frozen in the controversial Panama based processor named Crypto Capital.Dong remarked on the fresh news which was reported earlier this month - and said that Tether is planning not only a commodity-backed asset but one that would be pegged to the Chinese yuan and be held in offshore accounts and traded under the CHNT ticker.
“CNHT will not interfere with PBOC [People’s Bank of China} capital control policy because CNH is different than CNY, as it's already an offshore product. On the contrary CNHT will help China to expand the adoption of CNH for international settlements,” he stated.As reports shared on many best cryptocurrency news sites this week showed, Bitfinex and Tether have again responded to the NYAG's case against them and maintained the allegations that Bitfinex lost $850 million in funds needed for user redemptions - and used capital from Tether to cover the shortfall.
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