In brief
“A huge money driver”
Tips
Have a news tip or inside information on a crypto, blockchain, or Web3 project? Email us at: tips@decrypt.co.
$100,772.00
5.02%$3,822.17
6.92%$2.38
5.59%$227.34
6.54%$717.16
8.06%$0.410494
8.41%$1.00
0.20%$1.087
10.94%$3,820.30
6.76%$0.283539
7.83%$49.00
13.51%$0.00002883
10.13%$6.43
11.28%$4,539.82
6.08%$24.21
13.51%$4.71
31.27%$9.03
11.76%$100,518.00
4.84%$0.431682
5.67%$0.292358
6.51%$546.19
7.83%$3,826.48
6.91%$0.00002478
14.08%$17.08
15.06%$117.70
10.28%$9.50
0.36%$6.88
11.16%$13.58
20.97%$4,028.60
6.87%$13.11
14.67%$1.002
0.08%$0.634613
13.91%$15.92
17.77%$0.997972
-0.16%$33.75
16.44%$9.61
13.75%$0.182505
9.45%$1.83
11.91%$0.058876
10.43%$617.54
11.77%$303.15
15.17%$1.33
13.88%$3.18
16.34%$0.163534
7.23%$1.004
11.58%$6.73
12.39%$4.24
8.77%$204.43
15.34%$0.448298
10.68%$2.40
14.01%$25.00
0.99%$1.26
13.05%$8.79
14.37%$55.07
6.28%$7.36
14.03%$1.89
13.00%$1.056
20.83%$3.06
10.43%$0.00003932
14.41%$2.35
10.10%$29.10
10.34%$0.288848
14.12%$1.81
11.67%$2.59
12.24%$4.54
23.37%$0.621838
16.80%$3.14
15.04%$0.0002437
12.52%$3,826.63
7.20%$0.052681
19.04%$6.34
7.93%$0.04371263
13.26%$141.91
6.73%$0.03848063
19.36%$100,792.00
4.85%$4,293.04
6.97%$0.779488
16.62%$3,939.08
6.20%$1.84
20.33%$0.182376
13.99%$4,015.77
7.48%$1.001
0.49%$1.93
8.98%$1,888.35
9.87%$1.095
9.73%$0.0295524
5.96%$0.444715
12.83%$13.38
6.76%$0.711421
0.93%$5.51
13.81%$0.271013
10.79%$12.47
7.37%$2.18
19.99%$23.62
11.56%$3,932.93
6.62%$1.14
12.06%$2.14
13.84%$0.978541
12.23%$1.48
7.82%$0.658366
11.38%$100,597.00
4.88%$0.142027
-5.55%$0.398651
12.56%$8.09
2.81%$17.52
6.54%$3.23
0.99%$1.092
9.21%$100,938.00
5.48%$0.089078
-2.24%$67.03
8.64%$39.59
17.24%$1.16
9.54%$47.13
10.76%$0.00000135
12.14%$18.43
13.84%$1.29
28.38%$0.00000323
2.50%$282.75
6.50%$0.634949
13.76%$7.98
12.09%$1.25
9.87%$0.654853
13.53%$1.29
10.94%$231.91
6.70%$1.54
10.69%$0.118961
21.04%$3,829.09
7.13%$4,012.21
7.42%$3.97
11.94%$5.02
19.46%$100,344.00
5.04%$0.214602
12.05%$3.52
10.12%$6.14
8.56%$4.06
12.53%$63.39
11.74%$2.93
12.07%$0.806713
11.43%$1.49
5.00%$2.14
14.07%$0.345274
14.88%$2.10
12.69%$0.00942684
15.36%$241.73
6.23%$103.99
12.60%$100,592.00
5.28%$0.00004499
12.23%$0.01288979
26.39%$0.00000001
14.15%$3,823.85
7.08%$0.23864
13.24%$0.00845997
17.24%$3,825.28
7.22%$0.412529
9.13%$0.758328
37.26%$15.82
15.35%$0.931083
14.39%$2.17
13.99%$1.001
0.04%$0.01475712
10.56%$0.116077
12.60%$0.00964371
5.66%$0.00866536
17.32%$0.37178
15.73%$3.14
14.45%$6.86
16.57%$36.42
12.24%$1.00
0.00%$0.00013378
11.18%$0.00175286
17.47%$0.711883
9.53%$276.28
8.01%$0.76248
12.76%$4,146.41
6.66%$0.49067
17.84%$5.16
-25.07%$2,724.47
0.82%$0.668484
22.35%$1.29
9.40%$101,143.00
6.24%$0.01435399
10.56%$0.067704
9.79%$3,823.58
6.67%$0.996378
0.36%$2.03
11.57%$0.582649
12.35%$17.21
15.40%$38.46
11.45%$0.00864848
12.50%$1.44
19.52%$5.89
15.24%$0.0000006
6.83%$0.00329364
13.62%$48.36
9.31%$3,825.66
6.81%$1.36
9.58%$0.075761
12.91%$100,690.00
4.66%$0.298678
10.58%$3,829.06
6.81%$2.64
14.17%$0.080736
13.38%$0.02828463
10.73%$0.00695846
6.80%$9.46
1.81%$0.99988
0.13%$0.303123
13.96%$0.077949
5.76%$2,705.36
0.79%$0.627962
17.62%$0.201317
10.80%$0.522534
27.81%$4.17
26.53%$0.00000417
8.85%$0.0069069
4.26%$0.54095
20.51%$0.00000024
10.41%$100,636.00
4.89%$1.02
1.52%$6.13
5.13%$4,112.77
7.09%$0.882449
9.96%$3,949.69
5.30%$27.89
13.13%$0.04761296
14.99%$0.01431383
10.83%$0.04963316
11.96%$0.670076
9.82%$1.15
9.39%$6.02
3.40%$57.61
12.57%$1.66
-4.81%$0.508719
13.70%$1.099
11.08%$4.20
12.96%$2.04
10.55%$0.085062
18.02%$0.04456806
7.49%$1.47
12.64%$3,827.91
7.35%$4.16
11.67%$2.26
15.58%$0.03533374
7.56%$1.046
-1.34%$0.433777
11.11%$0.290228
12.11%$4,224.16
6.71%$0.745801
14.63%Crypto exchange Bitfinex runs arguably the most important cryptocurrency on the planet, Tether. It’s a stablecoin backed by US dollars that’s used by other exchanges, including Binance, Bittrex and ShapeShift.
Tether dominates the stablecoin market, with a market cap ten times its nearest competitor. It dominates the cryptocurrency market, with a market cap of $4.9 billion and daily trading volumes of $51 billion—which is 25% higher than Bitcoin’s.
But Tether has always been a bit mysterious. For one thing, it’s only 74% backed; Bitfinex’s general counsel revealed that its funds were used to cover an $850 million black hole in Bitfinex’s finances. That hole appeared after its Panamanian payments processor collapsed for being, essentially, a fake bank. And the New York Attorney General’s investigation into Bitfinex and Tether over this use of funds has already cost the exchange $500,000. So why keep the whole thing going?
“It’s a huge money driver. That is one of the reasons why our racing horse is USDT,” Bitfinex CTO Paolo Ardoino explained, in an interview with Decrypt.
“The revenues of Tether are basically cash holding and safe investments like treasuries, so you can easily understand that if you can have a three, 3.5% return per year on a $4 billion market cap, or $4.8 now billion market cap, that is quite some interesting money there,” he said, adding, “You can do the math. More than $100 million.”
Ardoino added that only a small part of the reserves are held in such investments, specifying that the majority is held in cash.
“And that is why the competition started, because they were trying to get a piece of the pie,” he said.
Tips
Have a news tip or inside information on a crypto, blockchain, or Web3 project? Email us at: tips@decrypt.co.