Cryptocurrencies
Bitcoin Trades at $300 Premium on Controversial Crypto Exchange
- Bitfinex suffers from lack of transparency surrounding Tether
- Exchange temporarily paused fiat currency deposits last week
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Bitcoin continues to trade at nearly a $300 premium on the Bitfinex cryptocurrency exchange compared with rival platforms on speculation traders are dumping the so-called stable coin Tether in favor of the world’s largest cryptocurrency.
Over the past few days, Tether has broken out of its historically tight trading range around $1, fueling uncertainty that investors may be losing faith in the coin. Unlike Bitcoin, whose value fluctuates wildly from day to day, Tether’s tokens are designed for stability. Prices for the coins have historically stayed near $1 because Tether says each one is backed by a dollar in its bank accounts.