Bitfinex Responds After Data Manipulation Of USDT/USD Saga
The exchange has been on the spot for manipulating data as a way of covering up Tether’s shortcomings.
Bitfinex Denies Manipulating USDT/USD Data
Leading cryptocurrency exchange platform Bitfinex has come out to deny allegations of releasing inflated data on USDT/USD trading. The report was carried out by CoinDesk. The report stated that the data which was published by CoinMarketCap indicated that the data was non-existent since the platform was not trading the pair.
According to data from CMC, the trading volume was at $33, 598, 474 from a total trading volume of $182, 742, 351 which represented 18% of total volume. In other words, the trading volume was the second highest to be recorded today.
According to the article, the data was intentional considering Bitfinex platform does not provide USDT/USD. On the platform, investors can only deposit and withdraw the pair but not trade.
The data was confirmed by an official from CMC. He stated the data was provided by the Bitfinex API application. He stated that CMC was even confused with the data and they were planning to conduct further investigations regarding the controversial figures.
In response, Bitfinex tweeted making a clarification regarding the controversy. The tweet accompanied a link to the original CoinDesk article. The exchange stated that the data represented the total sum of deposits and withdrawals on Bitfinex. They categorically denied that they issued non-existent numbers. The exchange pointed out that API system works on the movement volume which is not part of Bitfinex ticker. The tweet added that ticker is not pushed by the exchange.
Intestrengly, Bitfinex and CMC did not provide an API link for the live website. A notice on Bitfinex stated that some sections of the API might need verifications. Requests to Bitfinex to provide live links have not been answered.
Over the recent past, Bitfinex has been forced to distance itself from reports that it was insolvent due to its lack of a banking partner. Noble bank from Puerto Rico is believed to have ended its partnership with Bitfinex. Reports show that the exchange was scouting for a new banking partner alongside Tether.
Bitfinex was later forced to halt wire fiat deposit on a short-term basis without providing a concrete reason. In an earlier statement, the exchange stated that its system still has a number of challenges affecting its fiat transactions.
At the same time, Tether has been under very sharp scrutiny after it lost its dollar peg. A number of market experts have accused Bitfinex of using inflated figures to cover up USDT’s shortcomings. To make matters worse, Bitfinex and Tether share common ownership.
Among notable people to voice their concerns about Tether is investor Michael Novogratz. He stated the drop in Tether was due to lost interest among investors.