Case Of 'Bitfinex Exchange' And 'Fake Tether Volumes' Listed On CoinMarketCap.

Case Of 'Bitfinex Exchange' And 'Fake Tether Volumes' Listed On CoinMarketCap.

2018-10-25 | Eddy Morgan

Case Of 'Bitfinex Exchange' And 'Fake Tether Volumes' Listed On CoinMarketCap.

In line with a recent official tweet, Bitfinex crypto exchange has replied a recent media report that suspects the exchange of publishing trading volume information from “a market that doesn’t exist.” The argument centers on a recent article published by a crypto media outlet ‘CoinDesk,’ that had alleged Bitfinex’s data on widespread crypto statistics aggregator CoinMarketCap was deceptively inflated by covering stablecoin Tether [USDT] - U.S.D pair.

Case Of 'Bitfinex Exchange' And 'Fake Tether Volumes' Listed On CoinMarketCap.The article had argued that since the exchange doesn't offer a USDT/USD pair, this was associated intentional strategy to create it seem as if a large volume of such trades were occuring on the exchange. In fact, Bifinex users are solely able to deposit and withdraw both Tether [USDT] and USD through their accounts, instead of execute such trades.

A representative from coinmarketcap revealed that the information was derived from Bitfinex’s in-house public API, and was portrayed in CoinDesk’s article as being “confused” as to the meaning of the data point.

Bitfinex exchange has tweeted its response to clarify its position, with a link to the CoinDesk’s article, adding:

“api.bitfinex.com/v1/movement_volume/tether … is the total sum of USDT dep/wds to/from Bitfinex. Wearen't ‘publishing’ faux numbers; the API technique is called ‘movement_volume’ and is nota part of our ticker API. Not pushed by us., pulled by coinmarketcap. Another not-so-brilliant example of opposing Bitfinex/Tether FUD.”

The API link that was provided by the exchange and CMC’s representative to Coindesk doesn't lead to a live web-site as at the press time. On Bitfinex’s web site, it's noted that some elements of the API need authentication.

However, Bitfinex for now has not responded for a live link by press-time.

Bitfinex has recently been prompted to deny rumors that it absolutely was “insolvent” or facing banking problems in response to reports that its banking partner, Puerto Rico’s Noble Bank International, was seeking a purchaser and had lost Bitfinex along with associated firm Tether as clients.

This following week, the platform temporarily suspended all fiat wire deposits while not providing a selected reason, though it had acknowledged in its previous statement that “complications still exist” for Bitfinex “in the domain of fiat transactions.”

Tether, for its half, has faced continual criticisms of inadequate transparency over its claims to be backed in a ratio 1:1 by the USD, with some going up to now on accuse the firm of covering up associated alleged deficit in complicity with Bitfinex Exchange.

The rumors hiked once Tether [USDT] allegedly dissolved its relationship with a 3rd party auditor this Jan. However, associated unofficial audit in June disclosed that Tether did have the suitable quantity of dollar reserves held in an anonymous bank.

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