The entire Bitfinex-Tether fiasco had pushed the collective cryptocurrency market into chaos last week. Since the allegations first came to light, a significant chunk of the crypto-space’s market cap has also been lost, with several altcoins falling in its wake. However, a noted BTC influencer and Bitfinex shareholder believes that all is not over. In a recent Weibo post, Zhao Dong commented that Bitfinex will survive.
Bitfinex and Tether [USDT] were in the news after New York State’s Attorney General accused the crypto-exchange of using Tether’s reserves to cover up its loss of funds worth $850 million.
Dong wrote that he was “fortunate to become a Bitfinex shareholder” and that results for him have been very happy. Commenting on the issue, he added,
“I believe this time too, Bitfinex will not be a problem.”
Dong was in the news after he revealed that Bitfinex’s Chief Financial Officer, Giancarlo Devasini had assured him that the situation was fixable and that the exchange’s frozen funds would be unfrozen in a few weeks. The aforementioned funds were frozen in several banks across the US, Poland, and Portugal. Dong had also previously dismissed any concerns regarding the crypto-exchange’s solvency in the future.
Dong also cited the Wells Fargo incident, claiming that the exchange “was forced to create a USDT solution to solve the problems of deposits and withdrawals” after Wells Fargo froze Bitfinex’s funds worth $140 million. The exchange later sued Wells Fargo for unfreezing those funds, he added.
In the same Weibo post, Zhao Dong also commented that despite its latest suffering, Bitfinex would survive, just like its name ‘Finex’ (Phoenix) implied. Dong ended his Weibo post with a cryptic statement, which said,
“I believe this time too, Bitfinex will not be a problem.
Because, What doesn’t kill you makes you stronger !”
Dong is one of the many Chinese crypto-enthusiasts who are unconcerned about the episode and its implications for the stablecoin market. In fact, many Chinese traders are counting on the FUD surrounding Tether [USDT] pushing traders to dump their USDT reserves in the hopes of buying them at a very low price. Some outside the Asian continent have looked at the bright side of the episode too, with BitGo’s CEO, Mike Belshe claiming,
“The @Tether_to and @bitfinex death will ultimately be a massive boon to digital assets and cryptocurrency. Whatever the short term impact, this will help digital assets move to the next level.”
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Jibin M George is a graduate in International Relations and Law with a growing interest in the world of cryptocurrency and blockchain technology