Warnings against Bitconnect, Bitfinex, USDT, and USI Tech - Ponzis
Of all the exchanges, you can trade crypto - Bitfinex is my least favorite. They were hacked for $60 million in bitcoin from a multi-signature wallet? That's never been reported possible from anybody else and they never explained how it happened even after two years? The took a haircut from everybody on the exchange, even those that didn't have bitcoin on the exchange. They have them 'bitfinex' dollars that they advised would be worth enough to make them whole again. Really this was a bank ‘bail-in’ for the crypto world.
I NEVER recommend people leave their funds on an exchange, to begin with. Hackers steal money every day from banks, but in crypto- there is no FDIC insurance. There is no undo in crypto. Get a Hard Wallet and be your own bank.
Bitfinex is also tied to the crypto coin ‘USDT” or US Dollar Tether” which is supposedly tied one-for-one for US Dollars just ‘tokenized’ into the blockchain so people can “they think’ be in a safe haven during times of wild swings. Although the organization only has one bank, that relationship is tenuous and somehow they added to their money supply by hundreds of millions – or double\triple their amount in the last few months – without an audit. Could they just be ‘printing’ those USDT tokens?
Bitfinex paid off those debts using the USDT tokens and was aided by the bull run in bitcoin which really bailed them out. A lot of people in the crypto-space think USDT will be one of the next scams to be exposed and possibly a Ponzi scheme. Bitfinex isn’t allowed to do business with US Citizens and it’s considered shady in the crypto community. If I were to pick an exchange to suddenly implode, it would be bitfinex, and likely related to USDT collapsing.
While we are on the subject, consider staying away from Bitconnect – it’s appears to be Ponzi, as well as and organization USI Tech. Bitconnect is huge at around 600 million and the cracks are showing. Nobody knows who is at the center but the biggest blowhard pumpers and Youtube are starting to quit so it may be getting close to collapsing. I feel bad for the people that got suckered in. If these three things happen at once it could take down the price of a lot of coins for a while. But you can’t stop progress, it will be a speed bump. I expect these things will happen in a paradigm shift. People can get too greedy and don’t do their own research. That’s what the scammers count on with any investment class.
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