“$317 million was available for margin trading on Bitfinex the other day. Leverage it at even 3x and you have $ 1 billion to push to the market with. If you don’t think that 20-40% of 24h volume in leverage is a concern i think we can just leave it at that”
Bitfinex, the world’s largest bitcoin exchange by volume is currently on the news and this time not for good reasons. Many users of Bitfinex currently have issues with withdrawing their funds which has led to fingers pointing at Bitfinex’ alleged ties with Tether. The issue dates as far back as a couple of months back when eyebrows were raised regarding the number of issued USDT’s following a sharp 500% increase in the number of offered tokens which led to many accusing Tether of carrying out price fixing to soar up the price of bitcoin.
Recently, some account holders of Bitfinex who are facing withdrawal problems many have taken up to social media to air out their frustrations some stating they are withdrawing from the platform until the further third-party audit is being carried out. Some users even now predict a MtGox like scenario.
“Bitfinex is the next MtGox. People starting to scream about it in droves. It’s becoming a big problem. This is exactly how the MtGox crash began and then poof. It was gone along with millions of user’s funds”.
It should be noted that just like most exchanges, Bitfinex has also experienced its own share of difficulties starting from April 2016 when 120,000 Bitcoins were stolen which till date is the second highest bitcoin theft after MtGox’ experience where 750,000 bitcoins where stolen though Bitfinex compensated its clients after initially spreading the risk across all its clients.
Also, in April of this year, Bitfinex also experienced another blow when its bank, Wells Fargo froze its bank account for weeks which also led to several complains by its clients
What are your thoughts on the current problems facing Bitfinex? Do you think they will emerge from this current crisis as they have proved to in previous crisis? Let us know your thoughts in the comment section below.