Bitfinex has always had a close relationship with Tether. Over the past few weeks, however, Bitfinex appears to have lost some of that market to other cryptocurrency trading exchanges like Binance, Poloniex, and Huobi. This is backed by the research conducted by the Element Group. Bitfinex didn’t just lose some of the Tether market. It fell from the second highest holder of Tether (USDT) tokens to the sixth highest holder worldwide. According to the reports, the market is slowly moving USDT from Bitfinex to other exchanges.
The Scoop Of The Report
From the report, the largest holder of Tether is Tether Treasury. This comes as no surprise. What is surprising is that it is followed by Binance, the world’s largest cryptocurrency exchange per market cap. The total USDT held by Binance is almost as much as the total held by Tether Treasury. The third on the list was a bag holder said to hold 60% of the total USDT on Binance. This group is followed by Huobi holding almost half of the total number of USDT on Binance. The next exchange of the list is Poloniex and then Bittrex. Bitfinex comes only after Bittrex.
Why Does Bitfinex Fall In 6th Place?
At a glance, it may seem unusual that Bitfinex has such a small percent of Tether in its holdings. When you take a more analytic look at the situation, it makes perfect sense. For starters, Bitfinex only holds a certain amount of Tether (USDT) at a time. This is why it regularly returns Tether (USDT) to the Tether Foundation. This is something that doesn’t happen with other exchanges. The closeness between Tether and Bitfinex is one of the reasons why they limit their Tether holdings significantly. Exchanges like Binance cannot just send back USDT the way Bitfinex can. So, it’s not accurate to judge based on numbers.