Bitfinex, one of the world’s leading cryptocurrency exchanges has been the highlight of the crypto-verse following the NY AG/Tether news. It’s in the spotlight again after news broke out that it was planning an Initial Exchange Offering [IEO], with expectations of raising $1 billion in USDT. Bitfinex is also planning the launch of its own exchange token, reports stated.
Dovey Wan, the Founding Partner at Primitive, tweeted,
“BREAKING and WTF Bitfinex is planning on a exchange token sale + IEO… plan to raise $1B in
$USDT…. This is really a WTF situation”
This was followed by Wan stating that they were “selling the allocation” of its Initial Exchange Offering on some channels and that this news was confirmed by one of the BFX equity shareholders. She further stated,
“If it’s a fraud then don’t be scammed if it’s not a fraud then WTF […] I just don’t see how this can be sustainable, it won’t make Tether fully-backed again unless they distribute profit/new fund raised back to Tether reserve. BFX has already securitized + tokenized its future cash flow for their last hack, this is another layer of leverage on top”
Dovey Wan was not the only member of the cryptocurrency space to report this news. Another user, @zirui_z, stated that the possibility of Bitfinex stepping into the IEO game was “high”, adding that “some big whales already reserved $300 million of the allocation in USDT.”
He further stated,
Dovey added that the information available was inconsistent and that it raised key questions. The first was the platform’s cash flow, and the reason for borrowing Tether if it already had high cash flow. Secondly, she questioned why the exchange needed an IEO, considering the fact that the $850 million borrowed funds from Tether’s reserve could easily be returned. The third was, “if BFX really doesn’t give a f of NYAG (not criminal charges yet) why bother doing all these?”
Andrew, a Cyber Security Specialist had this to say about the news on Twitter,
“Good God. Everyone deserves this. We traded one set of crooks and overlords for another barely regulated set. Between Bitfinex, Binance, and Bitmex, what are we even doing…”
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Bitfinex/Tether hits back at NY AG; says Martin Act action will not hold as USDT falls outside statute’s reach
Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.