rounded corner
rounded corner
top border

Tether--A Little Known Cryptocurrency, Sent Bitcoin and Other Cryptos Plunging This Morning


Bookmark and Share

Earlier this morning, the price of Bitcoin and other cryptocurrencies plunged after news began circulating that $31 million worth ofTether tokens had been stolen via cyber hack.

The effect of this news can be seen in virtually all cryptocurrency markets:

tether atether b

It's important to note the massive response to such an incident involving a little-known cryptocurrency; one whose correlation to other cryptocurrencies may hinge on nothing more than the uncertainty and, in some cases, the misperception surrounding an entire technological realm, rather than the particulars of a given cryptocurrency; in this case, Tether.

On the other hand, there's also uncertainty regarding the Bitfinex exchange itself and what its potential impact may be on all cryptocurrencies should the exchange fall.

Fortunately, Tethers developers were able to counter the cyber hack by quickly writing software to blacklist the address to which the coins were held. What this means is that the funds were frozen; safe from either transport or liquidation. It also amounted to a hard fork in Tethers Omni Layer protocol.

The panicked response to the Tether hack occurred against a backdrop of suspicion that had been brewing for some timesuspicion regarding the relationship between Tether (a cryptocurrency supposedly pegged to the US Dollar) and the Bitfinex exchange.

In short, questions have been circulating whether Bitfenex had the $400 million in reserves to back its tokens, or whether Tethers, issued without dollar asset backing, were being used to buy Bitcoin to drive up Bitcoin prices--an insider move benefitting the combination who engineered the maneuver.

It goes without saying that if Bitfinex collapse considering that it is currently the largest cryptocurrency exchange then such an implosion might significantly impact the entire cryptomarkets.

For more crypto news, visit our Blockchain News page and our Blog.


The risk of loss in the trading of stocks, options, futures, forex, foreign equities, and bonds can be substantial and is not suitable for all investors. Trading on margin or the use of leverage is not suitable for all investors and losses exceeding your initial deposit is possible. Supporting documentation is available upon request. Trading futures, options on futures, and forex involves substantial risk of loss and is not suitable for all investors. Carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources and only risk capital should be used. Opinions, market data, and recommendations are subject to change at any time. The lower the margin used the higher the leverage and therefore increases your risk. Past performance is not necessarily indicative of future results



Recent articles from this author



About the author


Karl Montevirgen a content creator and market strategist for Halifax America LLC. Formerly the Head of FX Operations at Global Futures Exchange and Trading Company, Karl has been involved in the commodities and FX markets for the last 9 years He has published with Finance Magnates, Technical Analysis for Stocks and Commodities, The Content Wrangler, and numerous other blog sites.

You can view his extended profile, list of publications, and theoretical content work on his LinkedIn page. 

Published by Barchart
Home  •  Charts & Quotes  •  Commentary  •  Authors  •  Education  •  Broker Search  •  Trading Tools  •  Help  •  Contact  •  Advertise With Us  •  Commodities
Markets: Currencies  •   Energies  •   Financials  •   Grains  •   Indices  •   Meats  •   Metals  •   Softs

The information contained on InsideFutures.com is believed to be accurate but is not guaranteed. Market data is furnished on an exchange delayed basis by Barchart.com. Data transmission or omissions shall not be made the basis for any claim, demand or cause for action. No information on the site, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any futures or options contracts. InsideFutures.com is not a broker, nor does it have an affiliation with any broker.


Copyright ©2005-2018 InsideFutures.com, a Barchart.com product. All rights reserved.

About Us  •   Sitemap  •   Legal  •   Privacy Statement