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.” Theargumentcenters ona recent articlepublished by a crypto media outlet ‘CoinDesk,’thathad alleged Bitfinex’sdataonwidespreadcrypto statisticsaggregatorCoinMarketCap wasdeceptivelyinflated bycovering stablecoin Tether [USDT] – U.S.D pair.
The article had argued that since the exchangedoesn’toffera USDT/USDpair, this wasassociatedintentional strategyto createitseemas ifa largevolume of such trades were occuring on the exchange. In fact, Bifinex usersaresolelyable todeposit and withdrawbothTether [USDT] and USD through their accounts,instead ofexecute such trades.
A representative from coinmarketcap revealed thatthe informationwas derived from Bitfinex’s in-house publicAPI, and wasportrayedin CoinDesk’s article as being “confused” as to the meaningofthe data point.
Bitfinex exchange has tweeted its response to clarify its position, with a link totheCoinDesk’s article, adding:
“api.bitfinex.com/v1/movement_volume/tether …is thetotal sumof USDT dep/wds to/from Bitfinex.Wearen’t‘publishing’fauxnumbers; the APItechniqueis called‘movement_volume’and is nota part ofour ticker API. Not pushed by us.,pulledby coinmarketcap. Another not-so-brilliant example ofopposing Bitfinex/Tether FUD.”
The API link that was provided by the exchange and CMC’s representative to Coindeskdoesn’tleadto a liveweb-siteas at the press time. On Bitfinex’sweb site,it’snoted that someelementsof the APIneed authentication.
However, Bitfinex for now has not responded for a live link by press-time.
Bitfinex has recently been prompted to deny rumors thatit absolutely was“insolvent” or facing bankingproblemsin response to reports that its banking partner, Puerto Rico’s Noble Bank International, was seeking apurchaserand had lost Bitfinex along with associated firm Tether asclients.
This following week, the platform temporarily suspended allfiatwire depositswhile notprovidinga selected reason,thoughit had acknowledged in itspreviousstatement that “complicationsstillexist” for Bitfinex “in the domain offiattransactions.”
Tether, for itshalf, hasfacedcontinualcriticisms of inadequate transparency over its claims to be backed in a ratio 1:1 by the USD, with some goingup to nowonaccuse the firm of covering upassociatedallegeddeficit incomplicitywith Bitfinex Exchange.
The rumorshikedonceTether [USDT] allegedly dissolved its relationship with a 3rd party auditor thisJan. However,associatedunofficial audit inJune disclosed that Tether did havethe suitablequantityofdollarreservesheldinananonymousbank.