Topic: BitFinex, Ones Now Support USDK, USDT Troubles Could Spur More Support (Read 157 times)

In a world where numbers can be manipulated, there is a need for a self-verifying trustless system. Blockchain is that solution that the world has been waiting for. In fact, it has been christened the 21st century greatest innovation eclipsing Artificial Intelligence. Well, like what it stands for, blockchain and AI would merge for better transparency and automation. It’s a matter of time. But, as a facilitator, the world of money and finance is inevitable. Made possible by blockchain, money as we know is being disrupted.

The goal of a global, trustless and immutable record from where money can be built on and issued through mathematics gave rise to Bitcoin. Bitcoin is promising and is already forcing banks and legacy settlement networks to innovate. However, Bitcoin’s Achilles’ heel is its volatility. Much can be said about it but the truth is that it is tapering. Analysts project that over time, its volatility will be comparable to some of the world’s stable fiat coins as the USD or GBP whose PCIs are below 3 percent.

The Triad’s Troubles

Before then, the crypto world needs stability. The flip flopping prices of crypto assets deter investment from institutional grade and HNW investors. Filling that gap was iFinex, BitFinex and Tether Limited. By issuing a fiat backed Stablecoin pegged 1:1 with the USD in Tether (USDT), there was a ray of hope. Within weeks of being listed at BitFinex, one of the triad supporting the Stablecoin and sharing the same CEO, USDT market cap surged.

It was even timely. With no KYC and AML rules governing issuance it meant criminal entities could take advantage of this window, launder their illicit cash through Tether and convert them to other coins via BitFinex. This caveat, a point of weakness is perhaps one of the many reasons US authorities are reluctant of easing their pressure off iFinex. It could be because of BitFinex’s track record of manipulation but US authorities are keen on how their FED issued currencies are being used. Through a summoning in Q1 2018, the DoJ opened a criminal probe calling for arrest of iFinex’s figure head because of allegation of Bitcoin price manipulation in late Q4 2017 mega rally.In a rather scathing report by researchers from the University of Texas, it was found that there was an unholy alliance between periods of market downturns, the timing of USDT minting and subsequent BTC price rallies. From their 66-page report, thesepro-bono sleuths realized that there was a possibility that iFinex through BitFinex were deliberately propping BTC preventing market forces from taking its course.

But this is not the only time where USDT is rubbing shoulders with the community the wrong way. There has been no audit report from any of the top four audit firms confirming the amount of USDT in circulation. After dissolving their partnership with Friedman LLP, Tether’s spokesman said:


Regardless of their explanation, critics were of the view that auditors were “running for the hills” because USDT is beingprinted out of thin air. It is highly likely that all the uncertainty around USDT, Tether and whether US authorities will tighten the noose on iFinex’s managers was the sole reason for last year’s meltdown. The fact that billions of dollars were drained because of an entity’s greed is likely behind the current explosion in Stablecoins.

Enters OKLink and USDK

OkEx may be supporting other Stablecoins but a standout in all this is their partnership with OKLink and Prime Trust. Through this deal, OKLink did roll out a reliable, verifiable, ERC-20 token Stablecoin in USDK to great reception. Differentiatingitself is the level of regulatory compliance. Pegged one to one to the USD, Prime Trust will handle KYC and AML meaning unless there is submission of personal details and the source of funds, no USDK will be issued. That’s in stark contrast with USDT which isn’t backed 100 percent with fiat but with crypto assets including Bitcoin.

Apart from that USDk has is now supported by BitFinex and Ones. Because of its liquidity depth, we cannot discount support from other exchanges further boosting USDk and OkEx. Ironically, BitFinex acknowledged USDK edge saying it is “dollar-pegged Stablecoin”. To reinforce this fact, OKLink will be availing monthly audit reports verifying the amount of USDk in circulation with the amount of USD in their Prime Trust reserves.

Source: http://adrypto.com/bitfinex-support-usdk-usdt-troubles-could-spur-more-support