The fall of Tether, the most famous stable coin in the cryptocurrency market, has supposedly been a very well orchestrated operation by a third party organization with plenty of resources to make even an army of bots and place sell orders against USDT. This according to a Bitfinex insider that provided the information to the cryptonews outlet Coinspeak.
Tether Woes Explained
Tether, being a stablecoin, needs to be pegged to a real currency, in this case, the US dollar. Earlier this week, there was a phenomenon that made this highly traded cryptocurrency drop 10% of its value, creating a significant turmoil in the cryptocurrency market.
But the situation got worse in exchanges that feature USDT-BTC pairs because the unbalance of the prices created an artificial hike of the bitcoin prices. This made Bitcoin touch $7,500 levels in exchanges like Bitfinex, an exchange related closely to Tether by the big amounts traded there.
Big investors and cryptocurrency experts like Michael Novogratz had explained this citing the lack of transparency that this company has exposed since the beginning of this year. But it seems that there is more to it than just that, according to a Bitfinex employee.
What Did Really Happen?
According to this employee and the report that Coinspeaker has released, the fall of Tether was no natural occurrence. The issue seemed to have been planned with days and even months of preparation. There were a large number of normal trading accounts that participated in this action.
It seems that these accounts classified now like bots, posted en masse operations for selling USDT for Bitcoin in Bitfines, a thing that soon created a drop in the price of the stablecoin, and also created a state of panic that spread to other exchanges listing Tether also.
A fact that made the whole fact more severe was the fake rumor that spread across the internet that said Binance, one of the biggest exchanges, was delisting Tether. This also caused a great damage because people panicked and tried to sell tether at a fraction of the price, contributing to the price drop.
But according to the source, these trading bots were fed with the same amount of cryptocurrency coming from whale accounts identified with IMMO.
IMMO is supposedly related with the Rothschilds, a well-known name that dominates great banking groups worldwide. IMMO would be the cryptocurrency instance of the Rothschild to achieve a foothold on this new industry.
So, summarizing, the Rothschilds are trying to get Tether and Bitfinex out of the business and get them in their place. It sounds a little crazy, but that is what the investigation of Bitfinex has implied.