Traders poured Tether
On Monday morning, traders on Bitfinex have begun to get rid of the Tether (USDT), which led to a drop in its prices to 18-month low and growth of the stock market as a whole.
Sharp selling stablon linked to the fear of traders and investors on the transparency of project activities and providing real dollars. From the beginning of the Asian trading session token fell to $0,95, and at the peak on BitFinex, the price fell to $0,85, but then quickly rebounded to $0,96. The last time such low rates were observed in April 2017.
The impetus for this market behavior could be news about the termination of partnership with Bitfinex Bank to Noble Bank in which was deposited the funds required to support stablein, which led to the temporary destabilization. There were also reports that the company Tether LLC a shortage of own funds, the project is Scam and its management is associated with the crypto currency exchange. This caused doubts among traders who have started to urgently convert USDT in other cryptocurrencies, which led to the overstatement of their courses on BitFinex and overall market growth to $10 billion.
In a few hours price of VTS increased to $6960, but subsequent adjustments have reduced the value to $6693. But on Bitfinex at the peak of the bitcoin price reached $7788 and still Paul is trading on average, $230 higher than on other exchanges. Most altcoins have increased in price 4-8%, and the newly-launched substitutes Tether, Gemini Dollar (GUSD) and TrueUSD (TUSD) increased by 2.9% and 4%, respectively.
The exact causes are still unknown, but in any case, traders began to actively reallocate funds to MTC and other stabilini. Although, according to researchers from Princeton and Florida, the main threat to the stock market remains China, which is able to manipulate miners to destabilize bitcoin.