Quick to scream insolvency….with little understanding of what this concept means
The insolvency rumors surrounding Bitfinex were months old, However, recently gains traction due to a slew of Medium blog posts. Bitfinex isn’t the only cryptocurrency exchange facing much heat in the recent times. Bitfinex filed a lawsuit against Wells Fargo, a US banking giant in April 2017. Hence, this was for stopping the deposits to Bitfinex account. Leading to significant business operations to be disrupted causing unrest in the customer base.
Bitfinex moves out of Taiwan and relocates to the Caribbean. They also sign a partnership agreement with Puerto Rico bank, Noble Bank. Noble Bank. However, decides to file for bankruptcy to restructure debt in January. Meanwhile, the only banking partner with Bitfinex was now lost, causing the start of the rumors.
Recently, Larry Cermark, a crypto analyst discovers the ties of Bitfinex with HSBC and tweets out the same speculating,
“Bitfinex is now banking with HSBC through a private account of Global Trading Solutions. Very good fit if you ask me. It’s also worth mentioning that all EUR, JPY, and GBP deposits are paused but Bitfinex “expects the situation to normalize within a week”. Banking issues?”
This results in a slew of rumor blogs on Medium alleging Bitfinex’s insolvency. Many Twitter users have been encouraging users to sell off their funds in Bitfinex. Additionally, considering the timing it is working.
“Targeted Campaigns Based On Nothing But Rumors”
However, Bitfinex earlier today posted a blog on Medium rebutting these allegations and rumors stating,
There have been ups and downs along the way…….Bitfinex is not insolvent, and a constant stream of Medium articles claiming otherwise is not going to change this.
To further substantiate, Bitfinex posts cold wallet addresses for BTC, ETH, and EOS.
Bitcoin : 148,467.26082649 BTC equivalent to $980 million
Ethereum : 1,751,273.08728915 ETH equivalent to $392 million.
EOS : 35,374,965.7071 EOS equivalent to $203 million.
In response to Cermark, Bitfinex states that authenticate users can easily withdraw GBP, JPY, EUR, and USD with ease. Further, quoting,
Complications continue to exist for us in the domain of fiat transactions, as they do for most cryptocurrency-related organizations.
Rebuttal by ‘Proof of Research’
A Medium user, Proof of Research claims Bitfinex’s “Love letter” indirectly aims at his previous post, causing Bitfinex to respond about the insolvency rumors.
“What really prompted the article that I wrote was the vast number of complaints on the Bitfinex subreddit.” quotes Proof of Research.
His research post claims, on September 7th, 2018, Bitfinex had a total of 225.18K BTC equivalent to $1.4 billion. On October 6th, 2018 the BTC count reduces to 148.46K BTC equivalent to $977 million.
A total of 77,000 BTC was liquidated by Bitfinex between those dates, which corresponds to approximately 34 percent of the total amount of funds in a wallet. Also, the cash value of Bitfinex decreases by approximately $500 million. However, this raises eyebrows to Bitfinex’s rapid liquidation and why it triggers.
Bitfinex announces JPY GBP EUR pairs to Tron (TRX) as fiat expansion plans. Moreover, read the full information on their official blog. Even though the exchange is among the top 20, it has been facing a lot of problems like all exchanges due to recent regulations.
Some related news coverage, in case, if you might have missed:
- Bitfinex launches Ethfinex, The Trustless Trading Experience
- Bitfinex’s chief Strategy Officer Leaves Crypto Exchange
- Bitfinex’s New System Bitfinex Ballot Allows Voting for EOS Block Producer
What’s your opinion? Are you giving into these allegations and rumors? Let’s discuss!
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