The relationship of Bitfinex and Tether: trouble is in the air
Bitfinex is currently suspected of heading directly for bankruptcy. Users are complaining about missing deposits in crypto and in fiat. Bitfinex exchange however denies these allegations, but they can not completely dispel the doubts. In the midst of all this is, there is also the connection with former child star Brock Pierce.
The main allegation is that Bitfinex no longer has enough cash reserves to disburse its customers. In addition, many users are complaining online, and the company reacts with censorship. Some users even fear a new Mt.Gox, but most are worried about their embedded Bitcoin . In addition, the old suspicions are reawakened that the alleged stable coin Tether is not so stable. In the midst of all these uncertainties is a former Disney star: the questionable Noble Bank, Brock Pierce, Tether, and Bitfinex.
First of all, the awkward thing about DEN, the Digital Entertainment Network. Brock Pierce co-founded this precursor of modern streaming networks with Marc Collins-Rector and Chad Shackley and planned a $ 75 million IPO. But it should not come to that: The trio had to answer to the charge of child abuse. As a result, the operators closed the network and announced their bankruptcy. DEN is one of the companies in the dot-com bubble that produced little content and disproportionately paid top executives. It was his questionable past that in 2014 brought many members of the Bitcoin Foundation to quit. When Brock Pierce stepped onto the board, ten members decided to leave Bitcoin Foundation. Reason: They wanted to have nothing to do with such a person.
If you do some further searching in the depths of the network, you come across an article in the Wall Street Journal. In it, the magazine reports that Brock Pierce announced in 2014 the Realcoin: the first cryptocurrency, which should be covered by the US dollar. The editors modeled it on Mastercoin, a bitcoin protocol.
Bitfinex and Brock Pierce, the unholy alliance. In September of the same year, Bitfinex operators Philip Grzac Potter and Giancarlo Devasini set up Tether Holdings Limited in the British Islands. Two months later, Brock Pierce's Realcoin renamed itself Tether and proclaimed Bitfinex as a partner. However, that's not the only connection between Bitfinex and Pierce. Pierce also founded Noble Markets, now better known as Noble Bank.
This bank now has proven problems in providing liquidity. Thus, the Puerto Rico based bank can not provide enough supplies to guarantee Tether's stability. So Brock Pierce founds Tether and Noble Bank. Then Bitfinex buys Tether and becomes the publisher of the controversial stable coin. Noble Bank is partly responsible for providing enough supplies for Tether. While Noble Bank will not be able to cope with this in 2019, a multitude of Bitfinex users are baffled. Everyone unanimously complains that they can not withdraw, that their Bitcoin is disappearing and that Bitfinex is not responding to customer requests.
Bitfinex tries to pull out of the affair. All this can be found in a media post from the user ProofofResearch. This clearly states that not only is there a large number of users complaining about missing deposits. Rather, he reveals that the Bitfinex moderator team generously deletes posts on Reddit. But what do elephants, blockchain and the Internet have in common? We do not forget. As ProofofResearch explains, you can restore the deleted posts in Bitfinex reddit with a simple trick. For this one has only in the link ( https://www.reddit.com/r/bitfinex/) replace the "r" of reddit with a c. If you do that, it quickly becomes clear that the Bitfinex moderator team is generously censoring.
Is Bitfinex still trustworthy? Now it may well be that Bitfinex, as indicated in the post, may still have a certain supply of Bitcoin, Ethereum and EOS. However, as the relationships between Brock Pierce, Tether and the Noble Bank show, the allegations are most likely not fiction.
Even the second and third defense point is sometimes not sufficient to clear the doubts over Bitfinex. Ultimately, the deleted posts, some of which refer to withdrawals of more than $ 100,000, speak a different language. The links to Noble Bank will not be rid of Bitfinex that fast.
One thing is for sure, and I am sure we all know it. A Tether collapse will trigger a Black Friday event for BTC and the entire cryptocurrency market.