Bitfinex Opens Margin Trading with USDT
Bitfinex, one of the largest cryptoexchange, has opened margin trading with stablecoin Tether or USDT. In the future, the trading platform promises to add other stablecoins to its listing.
Bitfinex claims in its blog that margin trading in a pair of USDT/USD will allow professional traders to utilize “unique trading strategies”. In addition, thanks to margin trading with stablecoin, customers will be able to more effectively determine the price of an asset, as well as hedge risks.
Also, users will be able to use USDT as collateral for margin positions.
Bitfinex promises that in the future it will open margin trading with other main stablecoins. But for this, they need to achieve the “necessary liquidity”.
In December, Crypto Exchange added to the listing a few new stablecoins backed by the US dollar. Among them are Gemini Dollar, Paxos, True USD, and USDC.
Some users accuse Bitfinex of manipulating Tether. They claim that, in fact, the exchange fully controls the issue of stablecoin, and the US authorities even opened an investigation against Bitfinex, arguing the marketplace using the USDT could have manipulated the Bitcoin price during a major rally at the end of last year.
Also, the crypto community doubts that Tether is really backed by US dollar. The Bloomberg partially dispelled the doubts. In December, journalists examine the company’s bank accounts and found that at least in some months, the reserves fully covered tokens in circulation.