In the ever-evolving world of cryptocurrencies, the USD-linked stablecoin and altcoin Tether (USDT) is of great importance. Because it has remained a stable entity. However, recent developments regarding Tether have created shock waves across the crypto community. Here are the details…
Is BNB the focus of the team behind Altcoin Tether?
The New York Times reported on June 17, 2022 that Bitfinex had applied to Tether’s reserves to cover significant losses. This revelation raises eyebrows, especially given the history of legal battles between Tether, Bitfinex, and the New York attorney general’s office. But the drama doesn’t end there. Travis Kling, director of Ikigai Fund, raised the possibility that the Tether team may be preparing to short Binance Coin (BNB) via the Bitfinex exchange.
BNB has been trading for nearly six years and @paoloardoino and the gang at @bitfinex waited until TODAY to launch a Perp on it… pic.twitter.com/knDwrM17EP
— Travis Kling (@Travis_Kling) August 31, 2023
Bitfinex made headlines by announcing the launch of BNB futures trading, which was scheduled to start on August 30. Prominent names in the altcoin industry such as Travis Kling have speculated that this move could signal Tether’s intention to unleash BNB. Efe Bulduk, a crypto analyst, said on his Twitter account:
“Don’t you think it’s a little remarkable that Bitfinex opened its BNB futures trading yesterday after years of waiting? Could the Tether team be preparing to short BNB?
Bitfinex'in yıllarca bekledikten sonra BNB vadeli işlemlerini dün işleme açması sizce de biraz dikkat çekici değil mi?
Tether ekibi $BNB shortlamaya hazırlanıyor olabilir mi?
Travis ince görmüş 👏 https://t.co/ubFRqumOrO pic.twitter.com/Znh99G7dFP
— Efe Bulduk (@TheBullduck) August 31, 2023
What is the latest situation in the BNB market?
As of the time of this writing, Binance Coin (BNB) is trading at $213. It’s been a tough time for BNB, primarily due to regulatory pressures in the United States. The question now is whether BNB will be able to maintain the key $200 support level in the foreseeable future. To better understand this potential short selling scenario, let’s examine the Binance Coin market.
BNB has experienced a rollercoaster ride whose price has fluctuated dramatically in recent months. BNB, one of the top-performing cryptocurrencies, has suffered a sharp drop in value following increased regulatory scrutiny in the United States. This regulatory pressure has led to restrictions on BNB trading for US customers on some exchanges. The launch of BNB futures on Bitfinex and the involvement of Tether raises questions about the future of Binance Coin. Will Tether’s move trigger a significant downtrend for BNB, or will it be able to weather the storm and regain its previous strength?
Tether’s role in the crypto market is critical
Tether’s role in the cryptocurrency market cannot be overstated. As a stablecoin, USDT is a crucial tool for investors to park their assets in times of high volatility. Its value is tied to the US dollar and provides a safe haven for investors in turbulent times. However, Tether does not stay away from the controversy. The New York attorney general’s office has investigated Tether and Bitfinex multiple times, alleging that Tether’s reserves may not be fully backed by fiat currency as claimed. These ongoing legal battles have added a layer of uncertainty to Tether’s reputation and stability.
If Tether does indeed short on Binance Coin, this could have far-reaching implications for both the BNB and USDT markets. Shorting a cryptocurrency involves betting that its price will drop, potentially lowering its value. For Binance Coin, this could mean further price drops and increased market volatility. On the other hand, Tether can make a profit if the short position is successful.
