Was Tether the Unknown Bitcoin Whale Behind Monday’s $2.27 Billion Switch?

The huge $2.27 billion bitcoin switch that occurred on Monday has led to the emergence of fanciful theories that Tether could be creating a non-public darkish pool for future USDT issuance.

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The Info: Bitcoin Whale Strikes $2.27 Billion in Six Hours

Monday (July 29, 2019) turned out to be an eventful day within the bitcoin scene. “Fiach_Dubh” a pseudonymous author for Coinmonks – a technology-focused publication – has woven an intricate plot that ties collectively a number of of the foremost happenings from Monday.

In a Medium put up printed on Tuesday (July 30, 2019), the Coinmonks author alleged that yesterday’s huge BTC motion and the launch of Tether on the Liquid Community are a part of an elaborate scheme.

Tweeting on Monday, Whale Alert, a Twitter bot that tracks massive crypto transactions, revealed 5 huge bitcoin actions. Every transaction was price greater than $448 million in bitcoin making a complete of $2.27 billion.

As reported by Bitcoinist, Tether additionally went dwell on the Liquid Community resulting in the emergence of L-USDT. This announcement occurred a couple of minutes after the third BTC switch.

The Conjecture: Tether and Blockstream’s Liquid Community

The Coinmonks article theorized that Tether is the ‘Unknown Owner 26’ concerned within the $2.27 billion switch. For the author, the timing of those seemingly separate occurrences goes past easy coincidence.

The argument put ahead means that Tether plans to develop its stablecoin by taking a good portion of the USDT market capitalization into the Liquid Community.

Possible Conclusion: An Try at Obscuring USDT Movement?

By so doing, the author argues that Tether can now obscure the issuance of USDT. Such a conclusion creates the likelihood for personal stablecoin transfers, making a “dark pool” for exchanges.

Bitcoinist reached out to each Tether and Blockstream about these theories. In an e-mail to Bitcoinst, Blockstream CEO Samson Mow stated:

The idea doesn’t actually maintain any water as a result of the issuance of Liquid Tether might be tracked in any Liquid Block Explorer. For instance https://blockstream.data/liquid/asset/ce091c998b83c78bb71a632313ba3760f1763d9cfcffae02258ffa9865a37bd2

So, on the time I’m scripting this, you possibly can see 61 500 Liquid USDt has been issued.

Mow additionally debunked the concept of a darkish alternate pool saying Liquid’s privateness options solely make sure the safety of entities sending massive funds. Thus, whereas blockchain monitoring platforms can’t view such transactions, the intention is to supply privateness, fairly than something untoward.

Bitcoinist is but to listen to again from Tether as at press time.

What do you consider the argument put ahead that Tether desires to make use of the Liquid Community to obscure the issuance of USDT? Tell us within the feedback under.

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