BitcoinIn Trouble, Crypto Price Expected To Decline By 80% As Tether’s Scrutiny Continues
According to industry experts, Bitcoin’s investors can be in trouble as its price is expected to decline by almost 80 percent due to a false increase in price by tether. Bitfinex, the company which owns Tether, has recently come under scrutiny by a blogger who calls himself Bitfinex’d. The blogger who has made detailed posts on youtube, twitter and Facebook has said that tether has been towed from air to increase the value of bitcoin.
Previously Bitfinex stated that all its coins have one to one value as they are backed by US dollar deposits. However, as a result of this recent news by the blogger, investors are now extremely worried and dubious about Bitcoins future. If the claims made by Bitfinex’d are true, the market for crypto currency can turn into a blood bath for investors.
Meanwhile, in order to calm down its investors, Bitfinex promised to publicize an audit report of its financials. The audit report has not yet been released by the company and it announced recently that it has fired its auditors, Friedman LLP.
In an official statement given by Bitfinex, the company said that Friedman LLP is no longer working for Bitfinex. Adding further, Bitfinex said that Friedman was taking a very long time to tackle the simple task of auditing tether. The auditor was undertaking agonizingly detail procedures for a simple and straightforward task thus it became evident that they could not finish the audit task in time.
While commenting on this situation, UC Berkeley’s professor, Nicholas Weaver said that if tether fails to maintain its value then a crises is waiting to happen.
In another report titled ‘Quantifying the effect of Tether’ an anonymous analyst wrote that tether is not growing by an organic business process, it is only responding to market conditions. Bitfinex have no option left but to release the audit report in order to calm down the market and increase investor confidence in crypto currency.
Blogger Bitfinex’s has predicted that cryto market will crash and this crash will be bigger than Mt Gox exchange collapse in which millions of dollars went missing.