December 4, 2022

How Does Meta Work: Social Technology Company

Today at Connect 2021, CEO Mark Zuckerberg introduced Meta [USDT] has been under the scanner for quite some time now. Critics and crypto enthusiasts across social media platforms, forums and Reddit threads have raised questions about the cryptocurrency project in general and its company Tether Limited in particular.

Tether is a USD-pegged token; it’s supposed to remain stable at around $1 because every unit of Tether is backed by one US dollar held in reserve by Tether Limited, according to its white paper (PDF). The problem though: There isn’t enough proof that the money actually exists, despite multiple calls from various parties to audit the company’s books. This lack of transparency together with wild price swings have given birth to conspiracy theories about market manipulation and brought scrutiny upon Bitfinex, the cryptocurrency exchange that is closely associated with Tether.

The following are some of the recent findings by crypto sleuths, regarding Tether:

Tether’s Angel Investor Chandler Guo has accused Bitfinex of using USDT to manipulate BTC price . The chinese entrepreneur, who claims to have “lost a fortune” in crypto-trading, tweeted on 27th August 2018 –

Dear Bitfinex, Many people are asking me how can I move 10k bitcoin out from #Bitfinex . So here is an article for you . Sorry for my poor english, not my native language.

Bitfinex is not a bank . It doesn’t have any agreement with Tether to use USDT as a withdrawal method. This means that Bitfinex has been illegally using US Dollars belonging to its customers for personal benefit.

There are rising suspicions of market manipulations by Bitfinex and Tether . A bearish trend in the crypto market had sent Bitcoin price tumbling below $6,000 on 21st August. The next day morning, Bitcoin suddenly jumped over $350 within minutes –

This is not a normal pump. For example, when Binance pumps 0x, it will move the price like 15-20% in five minutes and then dump hard. So far this pump almost to $8000 after such dumping. That’s what I called manipulation (stealthy way). — Crypto Thies (@KingThies) August 22, 2018

Bitfinex Has Given An Ultimatum To Tether: Their Bank May Stop Doing Business With Them . In a statement released today (27th August), Bitfinex has revealed that USDT withdrawal and deposit services may be affected if certain banking issues aren’t resolved by 4th September 2018. The news reports cite an anonymous source who said that both companies have been struggling to find a bank that will do business with them since Wells Fargo terminated their relationship.

There’s a good chance that Bitfinex got caught up in the same anti-money laundering investigation that led to Wells Fargo cutting ties with multiple cryptocurrency exchanges earlier this year . According to Tether’s white paper (PDF), the company is incorporated in Hong Kong, but it now has employees and bank accounts located all over the world.