Tether Withdrawal Suspension on Binance Was True but USDT Delisting was Fake News
Earlier today, the twitter user @Bitfinexed reported that Binance had suspended Tether (USDT) withdrawals. According to the tweet he uploaded, it is possible to see an image in which the exchange showed a warning saying ‘Wallet Maintenance. Withdrawal Suspended.’
Binance suspends Tether withdrawals.
I thought the whole point of Tether was that it could be freely transferred without worrying about banks?
Guess it was bullshit. pic.twitter.com/VhEAw1TMDb
— Bitfinex’ed (@Bitfinexed) October 15, 2018
This information started to spread all over the internet right after the prices of Bitcoin skyrocketed in just a few minutes up to $7,800 dollars. At the same time, Tether was being traded under $0.9 dollars, something that clearly affected the markets during the European morning.
According to some reports, this happened due to Tether network congestion. Although deposits and withdrawals were resumed, the problem came back later.
Moreover, there were reports about Binance delisting Tether. An image that seemed taken from Binance’s website and that spread on social media showed that the exchange took the decision to stop supporting Tether.
Nonetheless, Binance did not mention anything on the matter and did not release an official announcement on its site. The image was completely fake.
At the same time, KuCoin, a popular cryptocurrency exchange, decided to suspend deposits and withdrawals for a short period of time due to USDT wallet maintenance. The exchange announced that sometime before the volatility experienced by the markets during the morning.
Another email was circulating in which it informed that Binance was delisting Tether and that it was a scam. This turned out to be fake as well. If the emails do have some links, please avoid clicking on them.
This has clearly generated a domino effect, that combined with the volatility and Tether price drop, created panic among the community.
Learned today, short term, launching a fiat exchange that required months of work had less positive impact than FUD about USDT (a single photoshopped fake announcement) on BTC price. But I also know for a fact, long term, hard work wins. Keep building!
— CZ Binance (@cz_binance) October 15, 2018
In a retweet, Changpeng Zhao, Binance CEO, decided to clarify the situation. He gave retweet to a post in which the screenshot circulating about Binance delisting Tether was debunked. According to the original Tweet, Binance would never write a statement in that way. The image included a phrase that said: ‘Tether big scam.’
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
The market has been affected by fake news during the morning, something that harmed Tether and pushed Bitcoin to $7,800 dollars for a few seconds. Although several users got excited about Bitcoin reaching new price levels, the virtual currency came back to previous prices, close to $6,600 dollars.
Several experts have been criticizing Tether in the past arguing that it did not have the funds necessary to back the pegging. This is an issue that Tether still needs to solve and clarify with the community if it does not want to create further issues.
According to a person familiar with the matter, @Binance’s $USDT maintenance occurred in order to increase the speed of withdrawals amidst heightened volume.
— The Block (@TheBlock__) October 15, 2018