A fresh probe raises fears of systemic problems in the cryptocurrency market

  • 📰 TheEconomist
  • ⏱ Reading Time:
  • 44 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 92%

Россия Новости Новости

Россия Последние новости,Россия Последние новости

Trust in one of the most-traded virtual currencies slips after an alleged $850m loss in deposits

TO CRITICS, predicting cryptocurrencies’ value is like flipping a coin. Volatility is so high, they say, that a buyer might as well place a wager at a casino. Others see a more direct cause for daily price movements of virtual money: changes in the supply of tokens. And when the company that makes those tokens is suspected of fraud, the casino itself trembles.

The shockwave is caused by Tether’s unique status. Its issuer, also called Tether, is the “central bank of the crypto world,” says David Gerard of Attack of the 50 Foot Blockchain, a website that tracks the sector. Many cryptocurrency exchanges struggle to obtain bank accounts, because the market’s opacity makes it hard to keep tabs on flows of funds or to detect money-laundering. That makes lenders nervous. For those exchanges, Tether acts as a dollar substitute.

The allegations will provide doubters some relief—and more reasons to worry. Because Bitfinex was having trouble getting accounts at banks, the exchange operator used a Panamanian firm, Crypto Capital, as an intermediary to wire dollars to traders, Ms James says. She claims that last year Bitfinex entrusted over $1bn to Crypto Capital, “without any written contract or assurance”.

Мы обобщили эту новость, чтобы вы могли ее быстро прочитать.Если новость вам интересна, вы можете прочитать полный текст здесь Прочитайте больше:

 /  🏆 6. in RU
 

Спасибо за ваш комментарий. Ваш комментарий будет опубликован после проверки

US dollar is a world currency and they will go to any length in defending that position.

Россия Последние новости, Россия Последние новости

Similar News:Вы также можете прочитать подобные новости, которые мы собрали из других источников новостей

This engineer thought business people were crooks until he founded a company and made billionsWhen Mo Ibrahim was growing up in Alexandria, Egypt, he idolized scientists such as Marie Curie and became a telecommunications engineer. Now he is a billionaire — something he never expected, because he didn't trust initially trust business people. Business people are crooks....oh wait...........I made billions!.......business people are not crooks because I made billions!
Источник: CNBC - 🏆 12. / 72 Прочитайте больше »