Finex showing $6.746MM in 30 day volume, assuming 0,2% fee that $13,5MM they make in fees each month. And that doesn't include money they make on lending or interest on their stash. Tether market cap is $2.847MM NY OAG claims they lost $850MM (of their own and clients money) so 30% of all Tether max, i'm sure they'll survive *unless more shit comes up
Hmm... I don't think their liquidity will be doing well - looking at the price increase, people are dumping Tether to buy BTC and presumably trying to get out.
Also - not all clients will be paying 0.2% - so income may be lower and expenses are not zero, either. Filling a hole of many hundreds of millions cannot be done without years of all that income going into replace 'lost' capital.
As GentlemanD said, the irony is Tether WAS backed up until they lost this large chunk of funds. However, getting any new banking partner now will be nigh-on impossible.
Finex are in deep shit and probably in a total spin. Maybe a death spiral. Since they are (basically) profitable, I would think their best bet might be to try to find someone to buy 'em who does have banking sorted out and can float capital in to save the day. But who they gonna call..?
Only a couple of candidates exist - and they might think the brand is too toxic. Even at a sale price of $1, which is the likely price for Finex with a hole in the hundreds of millions of USD and a legal case on their back.
A bank could do it, but even if it makes financial sense, I can't see them risking running a crypto exchange. Coinbase? Anyone else...? With fast action needed and no time to do proper due diligence? Doubt it.
First, Finex need to keep their customers to survive for long enough to find a solution.
The chances of doing this with the run for the door already well underway is slim and all the Tethers coming back for redemption won't help. But it's their only hope.
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