In response to the recent rumors floating around on Twitter, Reddit, and Medium, Bitfinex has just published a blog post clearly stating that the exchange is far away from being insolvent.
The Puerto Rico based exchange denied all rumors about the insolvency and stated that all withdrawals are fully operational and functioning normally.
The allegations started when a user called Proof of Research wrote a detailed article on Medium titled ‘Bitfinex is No Longer Solvent — Remove Your Money Now’, pointing out that many users were facing withdrawal issues. He also points out the complaints posted on Reddit by the users that were censored by Bitfinex moderators.
This news was quite alarming to some members of the crypto community because if Noble Bank was really insolvent, it could have devastating implications on the cryptocurrency economy as a whole, due to the fact that the exchange’s collapse will trigger a logarithmic rise in Tether premiums.
The concerns over Tether, however, is not new. Bitfinex has not been transparent on the audit of Tether raising a lot of concerns over the 1:1 peg of the Stable coin. The Crypto industry, unfortunately, is dependent on Tether currently as it is the 8th largest Cryptocurrency with a market cap of $2.8 Billion. A lot of exchanges like OKex, Binance are also heavily dependent on Tether as it the second most traded Cryptocurrency.
Bitfinex is one of those cryptocurrency exchanges that usually remain very silent in their operations. They’re highly uncommunicative, and they just mind their own business. For the first time, however, it has come out in a strongly worded blog post against all those critics who’re saying that the company and its Tether stablecoin are insolvent.