In an interview with CCN, Bitfinex CTO, Paolo Ardoini has stated that Tether is set to launch on the EOS blockchain as part of the team’s plan to supplement EOSfinex.
In September last year, Bitfinex announced EOSfinex, a decentralized cryptocurrency exchange built on the EOS protocol.
Ardoini told CCN:
“One of the main reasons is that we need it for EOSfinex. Since it is an on-chain exchange we need Tether EOS to offer EOS/USDT and crypto-to-stablecoin pairs on it. EOSFinex is one of the most awaited projects in the EOS community but we thought it would be good to start giving everyone the ability to build on Tether-EOS even before EOSFinex launch.”
Because Tether is currently running on Omni, Ethereum and Tron, Ardoini states that cross-chain support will be key for the long-term success of Tether.
Furthermore, Ardoini states that the Bitfinex team is working with Blockstream to launch Tether on Liquid, and further plans of bringing the stablecoin to the Lightning Network by the end of this year.
“We can’t hide behind the fact that communities are split among multiple projects, so I believe is our duty to serve the blockchains that have the most active communities and clearly that can meet our security standards in terms of issuance,” Ardoini stated. “I’m working with Blockstream to launch Tether on Liquid and as Bitfinex we are collaborating with the RGB protocol community to bring assets to LN (and so I hope that Tether will launch on LN by end of 2019).”
Tether News Today – Headlines for November 17
- Tether introduces a new stablecoin backed by gold
- Bitcoin (BTC) and gold serve a similar purpose
Bitcoin News Today – There is a growing number of stablecoins backed by gold in the digital currency world. Recently, Tether decided to join the growing list by adding a new one to the mix. Tether just announced a new stablecoin backed by gold.
Tether Introduces a Gold-Backed Stablecoin
There seems to be something about Christmas that either brings floor-scrapping of great renown gutter wave to the digital currency space. This is because by the time Christmas rolls out this year, the crypto space could be welcoming a new Tether Gold digital currency. It was also around Christmas, in 2017, when the world’s largest digital currency by market cap hit its all-time high of about $20k.
Tether (USDT) Price Today – USDT / USD
Those memories are less fresh than the price trend of Bitcoin in the last Christmas when it lost a considerable fraction of its value and plunged to the $3k range. Nevertheless, the Chief Technology Officer of Tether and Bitfinex – Paolo Ardoino – is super excited about how Tether Gold is going to influence the digital currency space. In a statement, he said:
“Current macro-finance uncertainty brings the need for traditional instruments to hedge risk of our customers, especially in the digital currency industry. Gold has been, historically, an important asset for risk contingency.”
The new product of Tether comes at a time when many digital currency-based platforms seem to be getting the same idea. For instance, Shares – a firm that dabbles in stable currencies – reportedly revealed its plans for a new stablecoin backed by gold. In a statement, the chairman of the London-based firm – Danny Masters – said:
“Gold tokens are appealing due to a confluence of events: weakening real interest rates and weakening national currencies combined with increasing regulatory clarity around non-security tokens and the national appeal of gold to investors.”
Bitcoin (BTC) and Gold Serve a Similar Purpose
Since its emergence, Bitcoin (BTC) has been compared to gold. Many members of the digital currency space have also referred to BTC as “digital gold,” including David Marcus. The comparisons made between both assets is that they both work to act as a hedge against some of the economic tension that can affect fiat currencies and commodities. Their values are not affected by economic turmoil. Hence, both assets are great when it comes to maintaining one’s wealth.
At the time of writing, there are about twenty different gold-backed digital currencies in the market, and more are yet to come.
Tether Introduces New Gold-Backed Stable Coin
The crypto world is seeing a huge influx of gold-backed stable currencies, and now Tether is adding a new one to the mix.
Tether Is Getting Involved in Gold
The world could see the new “Tether Gold” cryptocurrency by the time Christmas rolls around this year. What is it about Christmas that seems to bring either great renown or floor-scraping gutter waves to the crypto space?
Remember in 2017 during the holiday season when the number one cryptocurrency by market cap (we’re talking about bitcoin) reached its all-time high of nearly $20,000? Those memories are less fresh than ones of bitcoin during Christmas the following year, when it was trading for a measly $3,500.
Either way, Paolo Ardoino – the chief technology officer for Bitfinex and Tether – is very excited about the prospects Tether Gold can bring to the digital money space. He comments:
Current macro-finance uncertainty brings the need of traditional instruments to hedge risk of our customers, especially in the crypto industry. Gold has been, historically, an important asset for risk contingency.
Tether’s new product emerges at a time when many other crypto-based platforms seem to be getting the same idea. For example, Live Bitcoin News recently reported on Coin Shares – a company that dabbles in stable currencies – and its plans for a new gold-backed stable coin.
Danny Masters – chairman of the London-based company – explained in a statement:
Gold tokens are appealing due to a confluence of events: weakening real interest rates and weakening national currencies combined with increasing regulatory clarity around non-security tokens and the natural appeal of gold to investors.
Bitcoin itself has often been compared with gold and is affectionately referred to as “digital gold” by several members of the cryptocurrency community including David Marcus, the head of Facebook’s blockchain division and the main developer behind Libra.
Comparisons are made in that bitcoin and gold often work to downplay some of the economic tension that can affect commodities or national forms of fiat currencies. Economic strife isn’t enough to make their values go down; thus, both products can be great when it comes to maintaining one’s wealth.
At press time, there are roughly 20 different gold-backed tokens currently existing within the cryptocurrency space. Another example is Paxos Gold, introduced by Paxos last September. The company is a regulated financial institution that seeks to create a “global, frictionless economy” according to its website.
We Need Better Products
Bitfinex could allegedly be in the market for new products, which explains the development of the new token. It is reported that the platform’s trading volume on several coins has been down by more than ten percent since June. Nic Carter – co-founder of Coin Metrics – says:
This could be a function of Binance’s launch of futures… or just wariness of regulators and their ongoing back and forth with the exchange.
Tether to File Motion With NYAG to Dismiss Class Action Lawsuit
Tether has released a letter of intent saying that it plans to file a motion to dismiss the lawsuit that claims it manipulated the crypto market.
The class action lawsuit seeks retribution for damages of more than $1 trillion. It’s based on an allegation made by the New York Attorney General’s office in April that USDT was not backed 1:1 by U.S. dollars and a study published by professors at the University of Texas at Austin alleging that a single account used USDT to drive up half the price of bitcoin’s 2017 surge.
The letter, sent to the U.S. District Court in the Southern District of New York, claims that the plaintiffs’ lawsuit ignores a subsequent version of that academic paper where the authors withdrew one of its central allegations – that trading patterns reveal the issuance of unbacked Tethers.
Last week, in a statement, Tether described the revised paper as “a watered-down and embarrassing walk-back” of the first version. As for its reserves, the company also points to the Transparency section of their website that shows $4.5 billion in assets, with a $100 million cushion above its liabilities.
In the letter, Tether also claims that the plaintiffs could not prove Tether and Bitfinex, the exchange that issues Tethers, were responsible for the transactions that occurred or that the traders actually suffered injury from the market crash.
The letter also refuted claims that Tether had monopoly power over the stablecoin market, had participated in racketeering, and committed common law fraud among other allegations.
The original lawsuit, filed by David Leibowitz, Benjamin Leibowitz, Jason Leibowitz, Aaron Leibowitz and Pinchas Goldshtein, was filed by Vel Freedman and Kyle Roche – the lawyers who won a federal case against Craig Wright. Bitfinex, Tether, Digfinex and current executives; former chief strategy officer Philip Potter; and payment processor Crypto Capital are named as defendants in the case.