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Is Tether a problem or is it the Bitcoin savior?




Over the weekend, Bitcoin took a pretty substantial hit that saw the world’s first ever Blockchain and cryptocurrency hit lows of about $5,880. Fortunately, however, this decline did not last long and Bitcoin’s price was able to bounce back relatively fast above the $6,000 neighborhood.

On the other hand, while Bitcoin and the rest of the coins were crushing, Tether (also known as the stable coin) was on an opposite bullish trend and for a good reason. According to reports, Tether printed over $250 million dollars worth of USDT over the weekend. Given that Tether’s USDT is pegged to the dollar by a ratio of 1:1, a total supply of $250 million was injected into the market at the point of the decline.

As a result, Bitcoin and the rest of the cryptocurrencies were able to bounce back from the bloodbath in a turn of events that raised concerns and opinions over Tether’s contribution to the market behavior. For some onlookers, the whole decline experienced over the weekend was a plan orchestrated by Tether’s whales in order to buy BTC at its lowest price. Others believe that Tether’s injection of $250 million into the market is nothing short of a god sent magic-bullet that saved the entire market from further decline.

Tether’s checkered past

Tether is not new to controversy. The US Dollar backed cryptocurrency has featured in the headlines for its connection to Bitfinex, a crypto exchange platform accused of using Tether to buy Bitcoin during low demand and later pumping the price to make a profit.

In fact, an academic paper was released earlier this month alleging that Tether was used at the end of 2017 and at the beginning of 2018 to pump BTC’s price to the $20,000 region. Since this news hit the crypto airwaves, lots of concerns have risen over the legitimacy of Tether’s USDT and its influence in the market.

Furthermore, Tether and Bitfinex have earlier been issued with subpoenas by the US CFTC (Commodity Futures Trading Commission) in regards to the above concerns. Plus, after claiming to have lost over $31 million in a coin heist last November, the market was shaken into a crash with Bitcoin and Ethereum taking the most from the hit.

Here is why some people are worried

The main purpose for Tether’s USDT is to be a stable coin that acts more like the federal reserve of the crypto industry since it’s backed by the US dollar on a ratio of 1:1. This basically means that you can exchange your USDT for $1. With previous concerns being about the lack of actual dollar reserves on Tether’s vaults,  critics have argued that Tether’s USDT tokens are created from thin air with the purpose of pumping the price of Bitcoin every time there is a dip in the market.

In fact, various market analysts have identifies that Tether’s printing of new USDT tokens tends to coincide with a dip in the price of Bitcoin, giving the company an advantage of buying Bitcoin at its lowest price. To back up this claim, an academic paper published by two academics from the University of Texas after a 2-year study of Tether’s market activity said that Tether’s price patterns tend to mostly be “consistent with supply based hypothesis where Tether is used to provide price support and manipulate cryptocurrency prices”.

Is there another explanation for Tether’s USDT market behavior?

Well, as it turns out, there is actually another alternative explanation and even though Tether limited has strongly denied claims of manipulating the market, all evidence points to a different direction. With the recent market decline last weekend, Bitcoin, Ethereum and the rest of the coins in the market were able to recover right after Tether, once again, injected $250 million USDT tokens to the market.

Charlie Lee, the creator of Litecoin, on the other hand, had a different explanation of what exactly was happening. In a post on twitter, he mentioned that:

Generally, this has been a precursor of the price going up. Tether gets printed when people deposit USD and get USDT back. This USDT will then be used to buy crypto. This is similar to someone depositing $250MM to exchanges. Of course, that doesn’t mean they will buy right away.

However, he also encouraged people to do their own research. For now, the verdict is still out on whether USDT is to blame for market crashes.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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My Crypto Heroes Announces Issuance of MCH Governance Token



Tokyo, Japan, 24th November, 2020, // ChainWire //

My Crypto Heroes is happy to announce the issuance of MCH Coin as an incentive to players in the My Crypto Heroes ecosystem, aiming to allow them to craft a “User-oriented world”. The MCH coin is available on Uniswap with a newly created pool with ETH. 

My Crypto Heroes is a blockchain-based game for PC and Mobile. It allows users to collect historic heroes and raise them for battle in a Crypto World. Officially released on November 30th, 2018, MCH has recorded the most transactions and daily active users than any other blockchain game in the world.

What is MCH Coin?

MCH Coin is being issued as an ERC-20 Standard Governance Token. The issuance began on November 9th, 2020, with 50 million tokens issued.

Of the funds issued, 40% are allocated to a pay for on-going development and as rewards for advisors and early investors. 10% are allocated to marketing and the growth of the ecosystem, and 50% are allocated to the community. The Distribution Ratio of the MCH Coin is subject to change via a governance decision.

The MCH coin will be used as a voting right as part of the ecosystem’s governance, with 1 coin being 1 vote. It will also be used for in-game utilities and payments. Additional information can be found here:

During December 2020 the first governance…

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Rewards Platform StormX Offers 50% Crypto Cashback Bonus for Thanksgiving



Singapore, Singapore, 23rd November, 2020, // ChainWire //

Blockchain-based rewards platform StormX has released a seasonal promotion for its award-winning Crypto Cash Back App. The promotion will allow app users to earn a 50% bonus on top of their cashback between Thanksgiving Day and Cyber Monday (November 26-30).

StormX has also introduced a brand-new staking service, allowing users to earn an additional 50% per year when they stake STMX tokens. The native ERC20 token of the StormX ecosystem, STMX has a total supply of 10 billion and is available to trade at many of the world’s top exchanges, including Binance and Bittrex.

“With Bitcoin’s price approaching its all-time high, interest in cryptocurrencies has renewed, though some people believe it’s now too expensive to buy in,” said StormX CEO and Co-Founder Simon Yu. “What we have done is create an easy way for such individuals to accumulate bitcoin, ethereum and other cryptocurrencies via everyday shopping.

“We’re also excited to provide users with the ability to earn greater rewards simply by staking their tokens.”

Since the StormX mobile app launched its Shop feature with over 700 stores in February 2020, some 400,000 unique users have been added to the rewards platform. StormX has also witnessed over 50% month-on-month growth for sales. The app is available for download on the App and Google Play Stores, and can be downloaded as a browser add-on from the Chrome Web…

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Valduz, Liechtenstein, 17th November, 2020, // ChainWire //

International cryptocurrency exchange promotes free trading and no gas fees for leading DeFi tokens

17th November 2020 — Bittrex Global GmbH. announced today 8 new DeFi tokens will be listed this week including:

  • UMA (UMA)
  • Aave (AAVE)
  • Balancer (BAL)
  • REN (REN & renBTC)
  • Kyber Network (KNC)
  • Band Protocol (BAND)
  • YF Link – (YFL)

Bittrex Global’s users can trade all of their DeFi  tokens with no trading or gas fees until 2021. The decision to enable free trading on Bittrex Global for DeFi tokens  follows on from the 1,000% growth of the DeFi asset class over the course of 2020.

The decision to enable free transactions will see more investors enter the Blockchain Act’s digital asset regulatory system, supervised by the Financial Market Authority in Liechtenstein (FMA) under the Due Diligence Act which requires traders to comply with the KYC/AML/CFT standards.

“The last year has seen huge growth in DeFi as an asset class and a number of significant milestones completed,” said Bittrex Global’s CEO Tom Albright. “As the asset class matures and more institutional and professional investors look at the fundamentals, we are likely to see increased demand and higher trading volumes for DeFi in 2021.

We’re really excited about what we’re seeing in the space and want to see these DeFi projects grow and help them build stronger platforms through increased adoption. Offering free trading fees…

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Press Release