Bitfinex - new page: "Fiat on Bitfinex"

[ft73]

It's worth mentioning that a new page has been published on Bitfinex website.

It's titled "Fiat on Bitfinex":
https://support.bitfinex.com/hc/en-us/articles/360010505034-Fiat-on-Bitfinex

For sure this page didn't exist prior Oct 9, 2018.
It's likely it has been published today ( "updated 7 hours ago" ).

It says:

All traders on Bitfinex trade with USD (fiat), not USDT. In line with this, all trading pairs on Bitfinex are placed against USD, not USDT.

USDT on Bitfinex is used as a transport layer, used if a trader wishes to deposit or withdraw in e.g. Omni USDT or Ethereum USDT. Until the trader specifically chooses to transport their fiat in Tether-denominated USD, all their fiat holdings on Bitfinex will be held in the form of fiat USD.

Traders can get both USD and USDT onto Bitfinex through means of direct deposits. Please note that in order to both deposit and withdraw USD (in fiat or USDT denomination), a user will need to be fully KYC-verified.

Two considerations:

• Bitfinex has a Bank again.
• Bye bye Tether ?

[figmentofmyass]

Two considerations:

• Bitfinex has a Bank again.
• Bye bye Tether ?

there's nothing "new" here though, right? people couldn't previously withdraw USDT without verification, could they? if you pull up the original announcement about tether, it referred to "verified" users.

so i'm not sure what they're trying to accomplish with this post.

are they just saying, "fiat on bitfinex isn't monopoly money, it's actually real fiat money, we swear!"

[pooya87]

Two considerations:

• Bitfinex has a Bank again.
• Bye bye Tether ?

there's nothing "new" here though, right? people couldn't previously withdraw USDT without verification, could they? if you pull up the original announcement about tether, it referred to "verified" users.

so i'm not sure what they're trying to accomplish with this post.

are they just saying, "fiat on bitfinex isn't monopoly money, it's actually real fiat money, we swear!"

i think they are trying to hide the fact that the ATH that was reached on Bitfinex yesterday was the number 7721.3 so if they say it is dollar then the number will become $7721.3 which will be a huge price rise.
but since it is not dollar and it is Tether the number is 7721.3 Tether. and with Tether price being less than $1 there was no real price rise apart from the momentary panic of ATH.
in other words current price of 6800 Tether on bitfinex is equal to 6460 Dollar on Bitstamp because 1 Tether = 0.95 Dollar

and the statement doesn't make any sense to me either. people deposit Tether, withdraw Tether and trade with Tether. so how can this be true: "all trading pairs on Bitfinex are placed against USD"!!!!

[adaseb]

This is actually nothing new. They actually have mentioned this before in the past, I think it might of been on their blog but they stated many times that the trading for the BTC/USD, ETH/USD, etc pairs are actually done with fiat currency and that they don't allow any trading of tether on their platform, basically no BTC/USDT, ETH/USDT, etc is done on bitfinex.

I think they posted this 6 or 12 months ago when there was another tether FUD week where everybody else was panicking.

But basically you deposit USD from your bank account and get USD in your Bitfinex, if you want to buy some alts on other exchanges like Binance, they will convert the USD to USDT and let you withdraw that.

If you only trade on Bitfinex and never withdraw anything crypto and later on your withdraw your USD, then it will get processed as USD and not tether.

Its all very confusing.

[cryptocrusher]

It sounds like just a way of trying to give themselves some fall back and also offer assurance that tether isn't created out of thin air and is actually supported by real dollars. It's interesting how they say all trading is in USD because even if something is equal to USD it doesn't make it USD.

[exstasie]

This is actually nothing new. They actually have mentioned this before in the past, I think it might of been on their blog but they stated many times that the trading for the BTC/USD, ETH/USD, etc pairs are actually done with fiat currency and that they don't allow any trading of tether on their platform, basically no BTC/USDT, ETH/USDT, etc is done on bitfinex.

I think they posted this 6 or 12 months ago when there was another tether FUD week where everybody else was panicking.

But basically you deposit USD from your bank account and get USD in your Bitfinex, if you want to buy some alts on other exchanges like Binance, they will convert the USD to USDT and let you withdraw that.

If you only trade on Bitfinex and never withdraw anything crypto and later on your withdraw your USD, then it will get processed as USD and not tether.

Its all very confusing.

I don't understand why people get confused about this, or why this distinction is worth making. Or why everyone thinks the banking rumors are "Tether FUD" but not "Bitfinex FUD."

Bitfinex literally can't deliver on any of its USD obligations yet people only ever mention Tether. It's bizarre. For some reason, people see USDT and they think "money printing" but then they see USD trading on Bitfinex and think "totally legit!"

I guess that's what Bitfinex is trying to play on here. People don't understand how Tether works.

There is no difference between "fiat on Bitfinex" and USDT. If you hold USDT, you are holding USD liabilities of Tether. Tether = Bitfinex. Same parent company, same banking problems, same bank account signers, and literally the only exchange where USDT can be exchanged for "fiat money." The reason Bitfinex can exchange USDT for USD at 1:1 is because they control Tether's bank accounts and issue USDT.

[shamc]

This will be good for new coins that are listed on bitfinex. MobileGO recently got added and it has started to pump from a rock bottom price, wish i bought more before it got listed there. Fiat conversions is a good feature, tether is ok but clearly not as good as the real thing

[wuvdoll]

Everyone is really just trying to get away from tether which is amazing news, I have always defended the idea that we do not need tether at all and we could just simply use USD instead of USDT, there was literally no reason to use a new stable coin or whatever the tether was to actually trade with dollar, why not just use dollar itself when we can.

I am extremely happy that the world has come to what I have been saying for months and now we are seeing the world changing towards more "decentralized" ways than a token that was at the monopoly of whoever we do not even know. There was a lot of times when tether was just purely bought by millions that made no sense or there was tethers printed out of nothing that bought up a lot of coins to pump the prices without a reason behind it. I am really glad we are getting away from it.

[davis196]

I think that the Tether creators made enough profits out of that "stable coin" and now they are trying to destroy it,before the FBI catches them.
This is a joke,the FBI can catch them even if they destroy it.
If tether wasn't really 100% backed by a USD reserve this is some serious fraud.

[cluit]

It's worth mentioning that a new page has been published on Bitfinex website.

It's titled "Fiat on Bitfinex":
https://support.bitfinex.com/hc/en-us/articles/360010505034-Fiat-on-Bitfinex

For sure this page didn't exist prior Oct 9, 2018.
It's likely it has been published today ( "updated 7 hours ago" ).

It says:

All traders on Bitfinex trade with USD (fiat), not USDT. In line with this, all trading pairs on Bitfinex are placed against USD, not USDT.

USDT on Bitfinex is used as a transport layer, used if a trader wishes to deposit or withdraw in e.g. Omni USDT or Ethereum USDT. Until the trader specifically chooses to transport their fiat in Tether-denominated USD, all their fiat holdings on Bitfinex will be held in the form of fiat USD.

Traders can get both USD and USDT onto Bitfinex through means of direct deposits. Please note that in order to both deposit and withdraw USD (in fiat or USDT denomination), a user will need to be fully KYC-verified.

Two considerations:

• Bitfinex has a Bank again.
• Bye bye Tether ?

Tether is about to experience a blow as far as I am concerned and all these shenanigans won't last long and no matter how they want to try to cover it all up, nothing will every stop it from imploding with their shady deals.

Bye bye tether indeed! They are just trying to tell us they are probably not just printing tether from nowhere and every tether is backed by real cash, I guess only if they allow themselves to be audited and they can prove that, there is no way on earth I will ever believe what comes out from the mouth of those people. Obviously, the thing that happened with USDT recently made them to say whatever they have to say to cover it all up.

[wozzek23]

This is actually nothing new. They actually have mentioned this before in the past, I think it might of been on their blog but they stated many times that the trading for the BTC/USD, ETH/USD, etc pairs are actually done with fiat currency and that they don't allow any trading of tether on their platform, basically no BTC/USDT, ETH/USDT, etc is done on bitfinex.

I think they posted this 6 or 12 months ago when there was another tether FUD week where everybody else was panicking.

But basically you deposit USD from your bank account and get USD in your Bitfinex, if you want to buy some alts on other exchanges like Binance, they will convert the USD to USDT and let you withdraw that.

If you only trade on Bitfinex and never withdraw anything crypto and later on your withdraw your USD, then it will get processed as USD and not tether.

Its all very confusing.

It is all really very confusing and I can just imagine they made it that way so you won't have to question a lot of things while you are still trying to wrap your head around their confusing statements and as long as it is like that, nothing changes the fact that they still remain shady.

I even wonder how they are still getting away with the fact of not allowing auditing, and that obviously shows they have a lot of things to hide and possibly they are just trying to cover up their asses based on what happened with the USDT pairs pump recently. As far as I am concerned, their days are numbered.

[coolcoinz]

Tether is about to experience a blow as far as I am concerned and all these shenanigans won't last long and no matter how they want to try to cover it all up, nothing will every stop it from imploding with their shady deals.

Bye bye tether indeed! They are just trying to tell us they are probably not just printing tether from nowhere and every tether is backed by real cash, I guess only if they allow themselves to be audited and they can prove that, there is no way on earth I will ever believe what comes out from the mouth of those people. Obviously, the thing that happened with USDT recently made them to say whatever they have to say to cover it all up.

So why don't they do it? I mean if they're legit and have tether backed like they're saying it shouldn't be a big deal to hire someone to do the audit and vouch for them. And i'm not talking about some small time private contractor but a large company that does it professionally like Deloitte.
The more they're trying to buy time the worse the value of USDt will be and competing stable coins will keep gaining. If they keep avoiding this it will mean they don't have it backed and are going MtGox on us.

[figmentofmyass]

Tether is about to experience a blow as far as I am concerned and all these shenanigans won't last long and no matter how they want to try to cover it all up, nothing will every stop it from imploding with their shady deals.

Bye bye tether indeed! They are just trying to tell us they are probably not just printing tether from nowhere and every tether is backed by real cash, I guess only if they allow themselves to be audited and they can prove that, there is no way on earth I will ever believe what comes out from the mouth of those people. Obviously, the thing that happened with USDT recently made them to say whatever they have to say to cover it all up.

So why don't they do it? I mean if they're legit and have tether backed like they're saying it shouldn't be a big deal to hire someone to do the audit and vouch for them. And i'm not talking about some small time private contractor but a large company that does it professionally like Deloitte.

tether's general counsel said the "big four accounting firms" like deloitte won't touch them:

“The bottom line is an audit cannot be obtained.”

“The big four firms are anathema to that level of risk … [Tether has] gone for what we think is the next best thing.”

what he's saying is understandable too. from a risk management perspective, there's no logical reason why the big four should engage a mysterious and risk-laden company like tether.

The more they're trying to buy time the worse the value of USDt will be and competing stable coins will keep gaining. If they keep avoiding this it will mean they don't have it backed and are going MtGox on us.

the value of tether has nothing to do with an audit. it has to do with the ability to process bank wires to customers. if you can redeem tether at 1:1 and have the dollars wired to your bank, why would you take anything less than $1 per USDT?

bitfinex just brought fiat deposits back online and stated they are working through a fiat withdrawal backlog. if true, the value should return to $1 once that reality sets in.

[Serpens66]

there were already good explanations in this thread.

In short:
Right, at Bitfinex it is USD, not USDT. But this does not matter for the value of these USD or USDT. Because Bitfinex and USDT share the same bank. So if USDT looses value, also the USD at bitfinex loose value to "real" USD.
If Tether and Bitfinex would use a different bank, this would not be true.

But I like the FUD I made some money with arbitrage, cause withdrawing is still possible, only delayed.
And delay is nothing new, look at Exmo or cex.io thread, which also use/used crpytocapital. Alot of complaints about delayed transfers. So it is not bitfinex to blame, it is cryptocapital.

btw: the fiat deposit stop has nothing directly to do with USDT value loss (only a withdrawal stop would make USDT loose value). The deposit stop was only used to increase the FUD and it worked.