In a volatile market like cryptocurrencies, one piece of bad news can be all it takes to wipe off millions from coin valuations. As the bears refuse to leave the market, there is a chance that fear and uncertainty will creep in amongst traders. Recently, cryptocurrency exchanges Bitfinex and Binance became the reasons why panic set out in the market leading to both rapid increases and decreases in crypto prices.
Binance’s Tether ‘Scam’ Fear
Monday started on a usual note for investors until an image started appearing in crypto circles and social media about Binance delisting Tether. In what looked like a regular blog post from the biggest crypto exchange in the world, Tether was labeled a “scam” and trading in all USDT related pairs were to be delisted on 16th October.
The community actively fought back against the fake news with one Twitter user @boxmining calling out the scam. He said that Binance is a very politically correct organization and would never write something like this.
FAKE: Saw this floating around and it's an obvious fake. Binance is VERY politically correct and will never write "Tether big scam" (it doesn't even make grammatical sense). This is just as bad as the "Vitalik is dead" scam last year. @cz_binance @binance pic.twitter.com/bd9Anvclmt
— boxmining (@boxmining) October 15, 2018
too much FUD.
— CZ Binance (@cz_binance) October 15, 2018
Bitfinex Fiat Deposit Issue
Cryptocurrency exchange Bitfinex announced on Monday that fiat deposits for some customers had been stopped. Bitfinex wrote in a blog post that the exchange on October 11 temporarily paused fiat deposits for a select group of customers. Fiat deposits in JYP, EUR, GBP, and USD have been stopped. The exchange clarified that the action had caused some inconvenience to users, but it was important to clarify that the action only affects a select group of people.
— Bitfinex (@bitfinex) October 15, 2018
Bitfinex wrote further:
“We are working to implement a new and increasingly robust fiat deposit system to be available in the next 24 hours, by Tuesday, October 16, 2018, to allow for the efficient processing of fiat deposits. Until then, we apologize for the inconvenience of the situation.”
News Followed by Volatile Price Action
As it stands many cryptocurrency prices today are up 3% – 15% including Bitcoin which is currently up 4%. However, prices have receded from the peak earlier in the day but are still recording strong gains. XRP, for example, was up 27% at one point today but is now currently up 15%.