1. Industry Interpretation
1. Industry Interpretation
Recently, Bitfinex and its sister Tether have been sued by class action in the currency circle.
Kyle W. Roche, a bitcoin asset lawyer who successfully sued Ao Bencong for trying to seize his deceased business partner, also tweeted the day before yesterday that his Roche Freedman LLP law firm filed a class action on behalf of people who own cryptocurrencies, accusing Tether and Bitfinex ( and other companies) to manipulate the cryptocurrency market, allegedly defrauding investors and hiding illicit proceeds.
We don't know who this law firm represented, but we do know that Bitfinex and Tether will face $1.4 trillion in damages if the lawsuit is successful. This is not a small sum.
The editor has read as many as 95 pages of prosecution documents, and it is reasonable to point out that the defendant influenced the cryptocurrency market by issuing additional USDT and other methods, creating the largest bubble in history. The plaintiffs also contend that the defendants violated multiple statutes, including the Commodity Exchange Act and the Federal RICO Act.
In order to help you quickly understand the entire lawsuit, according to the lawsuit documents, the editor here sorts out some key points for your reference:
1. This is a sophisticated scheme to use cryptocurrencies to defraud investors, manipulate markets, and hide illicit proceeds.
2. The plan was mainly completed through two companies, Bitfinex and Tether, including fraud, pumping and money laundering, etc., mixing their respective corporate identities and customer funds, while hiding the cooperation behind them, so that they can use unprecedented Efficiency manipulates the cryptocurrency market.
3. Tether's stablecoin USDT is pegged to the U.S. dollar. This plan allows Bitfinex and Tether to send a signal to the market: the demand for cryptocurrencies is growing rapidly, because each USDT represents a dollar put into the market.
4. From 2017 to 2018, Tether issued a total of 2.8 billion USDT, which was used for Bitfinex exchange and purchase of other cryptocurrencies. This artificially inflates the demand for the cryptocurrency, causing prices to skyrocket.
5. When the cryptocurrency market reached a frenzy, the massive issuance of USDT created the largest bubble in human history. When it burst, more than $450 billion in value was wiped out in less than a month. Its effects continue to impact the cryptocurrency market, including causing prices to drop below what they would have been without manipulation.
6. Some economists estimate that from 2017 to 2018, half of the growth of the Bitcoin market was driven by the manipulation mechanism of Bitfinex and Tether.
But Tether and Bitfinex are not hellokitty either, if the tiger doesn’t show his power, will you treat me like a kitten? As early as two days before the filing of the lawsuit, a statement was issued in advance confirming that they had learned of an unpublished document, and stated that the document falsely assumed that the issuance of Tether was responsible for manipulating the cryptocurrency market, and other baseless allegations. If "mercenary" lawyers were to sue using these document sources, they would vigorously defend themselves.
Looking back at April this year, Bitfinex was sued by the Office of the Attorney General of New York State, not only for allegedly defrauding users, but also embezzling Tether’s $851 million to make up for the shortfall. Although at the end of September, the court ruled that Bitfinex does not need to submit relevant documents related to the alleged misappropriation of Tether reserves to the Office of the New York State Attorney General for the time being, but the case is not yet over, and the result of the judgment is difficult to predict.
It can be said that the house is leaking and it rains all night. The previous hole has not been patched, and another one is exposed. In order to solve the problem of USD 850 million in losses, Bitfinex issued LEO platform tokens through IEO to raise USD 1 billion on May 10, and raised USDT to fill in the USD 850 million in losses. I don't know how to make it up this time?
Therefore, transparent and regulatory-compliant stablecoins are not only beneficial to the health of the cryptocurrency market, but also provide a good investment environment for leeks. The editor will continue to pay attention to such events and bring you the latest developments.
2. Today's market overview
2. Today's market overview
The total market value of the market today is US$221.8 billion, a decrease of 1% compared to yesterday. The transaction volume was US$52.6 billion, a decrease of 17% compared to yesterday. The market rebounded yesterday and began to fluctuate weakly after peaking in the short term, and the trading volume continued to shrink.
In terms of market sentiment, according to the statistics of Alternative.me, today’s market sentiment is panic, with a panic and greed index of 37. The degree of panic has slightly increased compared with yesterday, but the panic atmosphere has eased compared to the previous few days.
3. Distribution of currency rise and fall
Among the top 100 currencies by market value today, most of them ushered in a slight correction today, and the decline was controlled within 5%. The largest decline was KBC, which fell by less than 9%. KBC once claimed that the price will never fall, but the price has fallen by 70% in the past six months. The biggest gainer was CENNZ, which surged nearly 20% again today. The more noteworthy second-tier currency LINK also surged by 10% today.
4. Trading volume analysis
Among the top 30 currencies by trading volume today, the trading volume of most currencies has decreased significantly. However, the trading volume of LINK has not decreased but has increased. It is the fourth consecutive day that LINK has skyrocketed, and the trading volume has also continued to rise. BSV fell slightly yesterday, but the price rose slightly today, and the trading volume went against the current instead.
5. Stablecoin Analysis
Note: The USDT on-market discount and premium index is converted based on BTC/USD, BTC/USDT, USDT/USD and other trading pairs in multiple exchanges. It is the percentage ratio between USDT and USD, reflecting the trader's preference for USDT degree. The USDT off-exchange premium index is calculated based on the off-exchange price of USDT and the offshore RMB exchange rate. It is the percentage ratio between USDT and USD, reflecting the degree of crowding of funds entering and exiting the token market. When the index is 100, it means USDT parity, when the index is greater than 100, it means USDT premium, and if it is less than 100, it means USDT discount.
Note: The USDT on-market discount and premium index is converted based on BTC/USD, BTC/USDT, USDT/USD and other trading pairs in multiple exchanges. It is the percentage ratio between USDT and USD, reflecting the trader's preference for USDT degree. The USDT off-exchange premium index is calculated based on the off-exchange price of USDT and the offshore RMB exchange rate. It is the percentage ratio between USDT and USD, reflecting the degree of crowding of funds entering and exiting the token market. When the index is 100, it means USDT parity, when the index is greater than 100, it means USDT premium, and if it is less than 100, it means USDT discount.
6. Technical analysis
5 minutes
5 minutes
30 minutes
30 minutes
[BTC] BTC continued to consolidate downward after hitting a high of 8300 yesterday, and the upward trend showed signs of exhaustion. Now from the analysis of the 30-minute level, the upper rail of the box still has a strong suppression of the rebound trend, and several impacts have not been worn out. From the perspective of funds, the game is still dominated by the field, and the upward space is limited; combined with the small level of 5 minutes In terms of levels, the entire decline is still in an unfinished trend, and the center of gravity is obviously depressed. Although there is a rebound in the short term, the strength is not strong and continues downward.
To sum up, BTC is now in a large-scale downward trend, with strong support around 7700, and the trend is still dominated by narrow range shocks in the near future. The operation suggests that the rebound is not strong, mainly shorting around 8190, with a stop loss of 80 knives.
ETH: ETH has a strong 30-minute trend and can stay at a high level all the time. The recognition of funds is still good, but the willingness of bulls to pull up is average. The operation suggests that the short-term short-term short-term is mainly around 183, and the stop-loss price is 185.
EOS: EOS is staying at a high level, and it has hardly fallen below 3.12. The bulls have strong support, and there is still a lot of pressure around 3.2. Operational recommendations are mainly short-selling around 3.20, with a stop loss price of 3.30.
LTC: LTC continues to fluctuate sideways. After hitting a new high yesterday, it was directly pulled back by the box. The space is still not available, and it will go down in the short term. The operation suggests short-term short-term trading around 58, with a stop loss price of 60.
BCH: BCH has not completely broken through the platform, and has high requirements for the energy of bulls, and the short-term rebound space is limited. The operation suggests that short-term short-term trading is mainly around 234, and the stop loss price is 237.
