However, Bitfinex is the Cryptocurrency Exchange which is consistently considered to be a big part of the Tether coin scam. This is because a lot of the exceptional figures gotten from Bitfinex had mirrored Tether in the course of its commencement.

As a result of its link with Bitfinex, it is currently circulated that Tether coins are utilized for margin provision on Bitfinex, in an illegitimate demeanor. 

So, before we go into the full details of the scam, let’s start with the basics.

What Is Bitfinex?

Bitfinex is referred to as a cryptocurrency exchange that provides developed utility services for traders of computerized currency and cash providers. It is the World’s most developed cryptocurrency exchange. Also, it is the World’s biggest exchange via quantity for purchasing Bitcoin in opposition to the dollar. 

Bitfinex was created in the year 2012 from Hong Kong. Within two years of its entry into the market, it attained wide acceptance and had increased with acceleration.

Its transaction price is about 0.2% low and frequently gets to zero depending on its offering cycle. Bitfinex is backed all over the world asides for the United States of America traders. Its payment process is computerized currency. Trading can only be actualized via staking Cryptocurrency as fiat currency is unavailable.

Some of the cryptocurrencies it enables are;

• Qtum
• Ripple
• OmiseGO
• NEO
• Monero
• LiteCoin
• Ethereum and Ethereum classic
• Dash 
• Bitcoin Gold, Cash, and Bitcoin, etc.

Core Features Of The Bitfinex Exchange

The Bitfinex Cryptocurrency exchange is made up of three core features which are;

Exchange Trading

Bitfinex comprises of basic restriction order books for the business of digital tokens. Bitfinex users can stake, purchase and pull out these digital token

Margin Trading

Bitfinex enables efficient users to trade with roughly 3x3 bargaining chip, receive funding with the aid of bitfinex margin resources and also the peer to peer funding platform.
Users can physically begin a financing order to gain a specific number of funding, rate and period of their choice whenever they want to open a funding position.

Margin Funding

The peer to peer funding market gives users a method to gain interest in their computerized assets via granting out their funds to some other users who may want to trade with a bargaining chip.  

However, there is a digital coin linked with Bitfinex known as Tether (USDT).

So, What Is Tether?

Tether is actually a blockchain-based cryptocurrency in which its crypto coins that have been dispersed are supported by a corresponding volume of common fiat currencies such as dollars, Euro, Japanese Yen, etc. They are kept in a labeled bank account. 

Tether is referred to as a cryptocurrency that its founders allege is clinched to the U.S. dollar. The concept is based on the fact that it is more balanced than a majority of the computerized coins available that make use of large fee fluctuations. 

Tether was created in the year 2015 and apparently, a user will pay $1 for just one tether coin. Presently, there are roughly 2.2 billion tethers in circulation globally according to a survey made by Coinmarketcap.com. 

Tether operates to muddle the traditional monetary system through a much more advanced technique to money. It has made progress by providing its members with the aptitude to transact with normal currencies all over the blockchain. 

This is possible without the innate flexibility and intricacies linked with a digital currency. Tether is the first blockchain-enabled platform to speed up the computerized utilization of common currencies, and so it has communized transactions all over the Blockchain community. 

How Does Tether Work?

Tether prevails on blockchains utilizing the Omni Protocol and as ERC20 tokens. These transfer protocols comprise of free connection software that links with blockchains to enable the circulation and atonement of Cryptocurrency tokens. 

The Tether platform currencies are completely supported by the actual fiat currency in the capital account. Tethers are rectifiable and exchangeable harmonious to the limited terms and conditions of Tether. 

The rate of conversion of a tether is 1 Tether USD been equal to 1 USD. Tether platform is completely modest as the amount of all Tethers been dispersed is lower than or equal to the equilibrium of fiat currency kept in reserve. 

Theories On The Scam Of Tether On Bitfinex

All cryptocurrency devotees should be aware or may have possibly heard of the fraudulent coin called Tether (USDT) and its role in an imminent Bitcoin fall. Although people claim it has started occurring. 

For those who have no idea about it all, Tether is known as a prominent Cryptocurrency that has alleged to be supported by an equal USD reserve, i.e., 1 USDT to 1 USD. The organization that created Bitfinex also created the Tether Corporation. 

However, there is a theory that Tether developers do not have the initial dollar reserve and are reprinting Tether from nothing thereby utilizing it to bloat Bitcoin prices as well as other cryptocurrencies. They actually make a profit out of it.

The main issue they are faced with now is that members have noticed that Tether is not supported by the dollar and are shockingly questioning the worth of Bitcoin that has gone upwards recently. 

The tether organization released a statement that they were hacked. The company explained how roughly 31 million USDT were stolen from their treasury. They claim the funds were transferred to an unspecific address. 

While the company gave no explanation on how the money was transferred exactly from the treasury, however, this is quite worrisome as all companies are expected to be clear on whatsoever is going on. 

The tokens that were stolen have essentially been weakened and so will not be rectifiable for USD.

Nonetheless, some sources allege that this was never a work carried out by hackers. They are rather afraid that Tether may be strategizing towards a big exit fraud. With the swift authorization of new tokens, former problems with the conversion back to USD and currently, the hacking issue, this is quite an unusual year for tether. 

So, Is Tether Backed?

According to the Tether whitepaper issued by the company, Tether has rectified a significant volume of USDT from the dispersed quantity of tokens. With this, Tether will eradicate 500 million USDT from their treasury, leaving roughly 466 million USDT in its wallet as a preliminary scope for future distribution.

To Wrap It Up

A crash in the cost of Tether can possibly bring about a crash in the cost of Bitcoin and other cryptocurrency assets that lots of people have been purchasing with USDT.

The changes will finally allow the poker community to play using chips pegged to dollar value, while at the same time offering the lowest rake in the industry and verifiably fair decentralized card shuffling mechanism – a trio never seen in the history of online poker.

Choosing the coin

With expert advisors, poker elite, and community supporting the need for a change, USDT was an obvious choice as it matched the high criteria the room had for the coin: stability, transaction speed, and the overall reliability.

In addition, USDT is simple to use when it comes to crypto newbies: going from fiat on users‘ bank account to USDT on a poker account and vice versa can be done in a matter of hours. CoinPoker also allows its users to deposit and withdraw in BTC and ETH making the most out of the in-app currency conversion tool.

Better for a player

Looking from a player’s side USDT has the obvious superiority when it comes to providing liquidity and a hedge against crypto market volatility. The tokens are pegged to fiat money making this stablecoin less risky than typical cryptocurrencies therefore safe for both newcomers to the poker app and poker pros who will always know their bankroll in terms of fiat value.

Unique bonus system

USDT will work in perfect balance with CHP token, a predecessor in-game currency of CoinPoker, which won’t be a must for playing, however, will guarantee exclusive privileges and perks for its users and holders: Rakeback, extra leaderboard points, exclusive access to the sportsbook section and discounts on withdrawal fees. Reportedly more benefits to come in the nearest future.

A room providing more possibilities to win

It’s worth noting that CoinPoker is a crypto poker room with the lowest rake in the industry and huge promotions giving away thousands in fiat value each week. This is also the first poker room that returns 100% of the rake back to players in various shapes and forms. Seeing what’s on the table makes it obvious that the combination of the stablecoin USDT as in-game currency and CHP as a bonusing fuel is set for long-term success which is a must to take advantage of as a player.

Best time to join is now

USDT will become the official CoinPoker in-game currency on the 1st, October. The room is marking this significant date by giving away 100,000 GTD in prizes.

Players will be invited to enjoy ‘Crypto Series of Poker’ – the biggest series of crypto poker tournaments that have already become a tradition on CoinPoker, while Cash players will be treated to a two-week Leaderboard rewarding a total of 100 places!

Once registered don't forget to invite your friends to do the same since CoinPoker referral program awards 30% of what the referrals rake.

Download and start playing!

CoinBene has obtained MSB financial license in the United States and MAS financial license in Singapore, with more than 100,000 daily users and daily transaction volume reaching USD 3 billion. In terms of ranking, CoinBene has become one of the first-tier exchanges.

According to relevant data, there are over 5 million registered users on CoinBene platform at present. The number of daily active users exceeds 100,000; The peak daily activity of the contract exceeds 15,000.  The daily transaction volume exceeds 3 billion USDT.  The peak value of contract transactions exceeded USDT 2 billion.

For the exchange, the larger the number of users, the more likely it is to have security problems. Under the background of frequent crash down and hacking in major exchanges, CoinBene has been running smoothly, and there has never been a safety accident.

Moreover, in order to better protect users' assets, CoinBene has successively introduced payment mechanism and contract insurance. There is any platform safety accident, crash down, etc. on CoinBene platform. The platform will compensate in full. After users purchase contract insurance, liquidation can get claims.

CoinBene with a double insurance mechanism is very reliable for users, especially inexperienced users.

CoinBene contract trading is growing rapidly after being launched. The number of daily active users of the contract has increased 202% year-on-year, and nearly 13,000 new users were registered in November. To address the security issues of the contract, CoinBene recently launched a number of measures, firstly, it launched the "guarantee to pay compensations" mechanism, and then on August 10, CoinBene launched the "contract insurance" function. The successive security initiatives are intended to give users multiple layers of protection for their positions, allowing all users to trade with peace of mind at CoinBene, regardless of the market's ups and downs.

Double compensations, no fear of fluctuations

The contract market fluctuates frequently. On March 12, BTC plummeted from $7,000 to $3,800, and that night, long position liquidation was more than $5 billion. According to the data, on March 16, the contract market liquidation totaled $480 million, long position liquidation $303 million, short position liquidation $177 million.

CoinBene has been focusing on product security research and development since 2017, with 5 stars in Anchain and Bitforest professional penetration test reports. In the "March 12" incident, CoinBene did not crash down at all, avoiding unnecessary losses for users.

Based on the confidence in its own technology and responsibility to users, CoinBene has launched guarantee to pay compensations for all platform incidents during the trading process.

In addition to protecting users' assets from the technical perspective of the platform, CoinBene has launched the "contract insurance" function in order to reduce the losses caused by users' liquidation.

CoinBene's contract insurance adopts the "double compensation" mechanism, and once liquidation occurs, it will be reviewed within 24 hours. After passing the review, the compensation will be paid on the next day.

The k line is unpredictable, no matter if people are masters or novices, there are always times when they can't see the market or judge the trend, after purchasing the contract insurance, no matter how unpredictable the market is, it can protect positions from losses.

CoinBene intends to enhance the security of contracts through "guarantee to pay compensations" and "contract insurance". No matter how the market fluctuates, users can open positions at any time in CoinBene without fear of fluctuations, security is guaranteed and liquidation is paid. 

Easy to operate, stable profit

CoinBene's contract insurance uses the "double compensation" mechanism, users only need to open a position at the same time to buy insurance, in case of market fluctuation liquidation, the platform will double the compensation. Users can get both the principal and the money purchased insurance, equivalent to capital preservation, to ensure that the steady income is not lost.

That is, if the insurance ratio purchased 100%, after the liquidation, a loss of $10. Then the user can get a $20 compensation, minus the $10 for buying insurance, the user gets back exactly $10 as principal.

CoinBene, established in 2017, has accumulated strong strength through three years of operation, and has set up a "10 million insurance fund" to ensure that all compensations are completed on time. The insurance fund exists independently of CoinBene and operates under the same logic as the traditional insurance industry, with the fund only used to pay out platform claims.

CoinBene has obtained MAS financial payment license in Singapore and MSB financial license in the U.S. Based on the global ecological layout, it has set up sub-stations in 9 countries around the world.

After CoinBene launched the contract, the data continued to grow - the average daily active trading users of the contract grew 200%, and the trading volume grew 47%. nearly 13,000 new registered users were added in November, and the contract trading volume exceeded 257.1 billion.

With the growth of users, user demand is gradually increasing. CoinBene has launched a number of contract support functions: a simple version of the contract for novice users, a one-click order follow-up for contract newcomers to increase their profits, and the recent security mechanism - guarantee to pay compensations mechanism and contract insurance ......

All features, mechanisms, are designed to enhance the user's trading experience, regardless of the ups and downs of the market, so that all users can trade with peace of mind in CoinBene, which is the original aspiration of CoinBene, which has been available for three years