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Bitfinex Plans Exchange Token Amid Controversy

April 30, 2019

 

Just last week, the news came out that the New York Attorney General’s office has been investigating both Bitfinex and Tether. Included in this investigation is the claim that Bitfinex found themselves unable to access $850 million in customer funds and tried to cover this up with fraudulent transactions involving the Tether stablecoin.

 

Since this investigation is technically still ongoing, it might surprise you that Bitfinex is reportedly planning to release its’ own proprietary exchange token. While, according to CoinDesk, this news has not been completely confirmed by the exchange itself, it has been confirmed by Dong Zhao, who is a well-known shareholder in Bitfinex that is frequently cited on the subject.

 

If this proves to be true and Bitfinex releases its’ own equivalent to BNB, then it would be logical to ask whether Tether has a place on the Bitfinex platform at all. As of now, it functions like an exchange token since it is usually used as one of the possible vehicles for traders to quickly move between assets in a “stable” fashion.

 

With this in mind, it would also be reasonable to conclude that if Bitfinex releases its’ own token, they may be doing so to cut themselves loose from the constant chaos that surrounds Tether. The Tether stablecoin has basically been the most controversial cryptocurrency in history, next to examples like Bitconnect. While Bitconnect clearly defrauded many people, Tether has repeatedly been accused of being a fraudulent project as well. Furthermore, what people seem to be forgetting is that Tether’s possible negative influence on the market stretches beyond Bitfinex to Tron, which has shown a large level of support for the coin, and even the price of Bitcoin.

 

As Bitfinex reportedly has a few weeks to give back the $850 million to customers, this saga is actually still in its’ early stages. The result of this search for the missing funds as well as the continuing conversation between the NY AG and Bitfinex will ultimately determine whether anything will play out in the exchange’s favor.

 

 

By: BGN Editorial Staff

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