Bitfinex Introduces Margin Trading for Tether (USDT)

Bitfinex – a top digital currency platform based in Hong Kong – recently launched margin trading for Tether (USDT). Tether (USDT) is the most popular stablecoin in the crypto market. The introduction of margin trading for the stablecoin was revealed in a blog post which was published on the 21st of December.

Bitfinex Introduces Margin Trading for USDT/USD

The Hong Kong-based digital currency trading platform introduced margin trading for the USDT/USD pair. This trading pair will ostensibly result in more efficient price discovery and allow users to hedge the exposure taken on stablecoins. According to the blog post, Tether (USDT) will be available as collateral for margin positions together with a dedicated lending market. While the margin trading of stablecoin is presently limited to USDT/USD, the trading platform intends to launch margin trading for other pairings of stablecoin once there is enough liquidity. Earlier this month, Bitfinex and Ethfinex – the spinoff of Bitfinex – added four new USD-backed stablecoins to their platform. The USD-backed stablecoins include True USD (TUSD), Gemini dollar (GUSD), Paxos (PAX), and USDC. The four new digital currencies were added to the already supported USDT – the industry stalwart – and DAI – Ethereum-backed coin. All the coins are to be traded against the USD.

Bitfinex Was Probed for Bitcoin (BTC) Price Manipulation

Back in November, Bitfinex was under scrutiny by the U.S Department of Justice with regards to the alleged manipulation of the digital currency market. The United States Department of Justice channeled its investigation to whether or not Tether (USDT) was used to inflate the price of Bitcoin (BTC) artificially during the meteoric rise of the coin last year. Bitcoin (BTC) – the largest digital currency in the world – peaked in December last year. The digital currency surged towards the $20k level; this is the highest level it has ever tested. However, the digital currency has lost more than 80 percent of its value since then, at the press time. There are lots of speculations that the value of Bitcoin (BTC) was artificially inflated at that time. All fingers were pointed at Bitfinex, with allegations that the trading platform was using Tether (USDT) to create false trade volume on the platform. This led to further investigations by the US Department of Justice. According to reports, the Department of Justice looking into how the new tokens of Tether were issued and why the majority of the tokens came into the market through Bitfinex. The Department of Justice reportedly furthered the investigation into the activities of Bitfinex and every possible misconduct. In December last year, both Tether and Bitfinex got subpoenas from regulators in the U.S. However, the reasons for the subpoenas were not disclosed. But according to reports, the reason why the firms received subpoenas is related to the adamant doubt regarding the claim of Tether that USDT is backed by one U.S dollar. Tether has always claimed that every Tether (USDT) is backed by one U.S dollar. However, a few months ago, the value of USDT declined significantly below the $1 and traded below the 90 cents mark. This created a lot of worry and investors were left with many unanswered questions. However, it has recovered to the $1 mark and even over. Tether (USDT) Price Today – USDT / USD
At the time of writing, Tether (USDT) is changing hands at $1.02 after a decrease of less than one percent over the past 24 hours. Tether (USDT) currently has a market cap of $1.89 billion and a trading volume of $5.13 billion over the past 24 hours.

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.


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