Bitfinex’s Chief Strategy Officer (CSO), Phil Potter, is resigning from the company, as Reuters surfaced June 22. The CEO of Bitfinex, Jean-Louis van der Velde, will be replacing Potter as interim CSO until a suitable replacement is found.
When pressed, Potter said that it was the “natural time for [him] to depart the executive team” while Bitfinex turned their focus on “other strategic markets,” failing to specify what exactly those strategic markets are.
Bitfinex, by trade volume, is the 4th largest cryptocurrency exchange, Coinmarketcap. Part of their responsibility is the ongoing management of Tether, one of the major trade pairs on exchanges, which issues digital tokens which are pegged to USD.
Tether has, what in my opinion, is a shady past. I am among the skeptics who doubt that they are actually holding $1 in their reserves for each token issued. Subpoenas were served from U.S. regulators to probe into the exchange and cryptocurrency to see if these billions in cash reserves really existed.
It was just earlier this week that Tether’s grand counsel confirmed that Tether has backed all their tokens, however they were careful to note that it was not an official audit and that they are not an accounting firm.
Whatever is going on beneath the hood at Bitfinex/Tether has the potential to severely disrupt every cryptocurrency market. Those who are holding large amounts of cryptocurrency often buy Tether when there is market uncertainty.
A research paper surfaced from University of Texas which alleges that Tether’s token could have been used to manipulate Bitcoin’s (BTC) value last year during its rapid growth and adoption.